PPF Interest Rate

The Public Provident Fund (PPF) is a popular long-term investment scheme offered by the Government of India. One of the major factors that significantly impacts the growth of PPF investments is the…

The Public Provident Fund (PPF) is a popular long-term investment scheme offered by the Government of India. One of the major factors that significantly impacts the growth of PPF investments is the PPF interest rate. In this comprehensive article, we will explain in detail the PPF interest rate, its historical trends, and factors affecting your PPF investment.

What is the PPF Interest Rate?

PPF interest rate is the rate at which the government calculates and compounds interest on investments made in PPF accounts. The Finance Ministry determines it and is subject to amendment from time to time. Interest is compounded annually and is credited to the account at the end of each financial year.

Historical Trends of PPF Interest Rate

The PPF interest rate has seen fluctuations over the years. Historically, interest rates have shown both upward and downward trends, primarily influenced by economic factors and government policies. It is important to understand historical trends to understand ​​the potential returns on PPF investments.

Financial Year

PPF Interest Rate Trend (in % p.a)

1st January 2024 – 30th March 2024


1st October 2023 – 31st December 2023


1st July 2023 – 30th September 2023


1st April 2023 – 30th June 2023


1st January 2023 – 30th March 2023


1st October 2022 – 31st December 2022


1st July 2022 – 30th September 2022


1st April 2022 – 30th June 2022


1st January 2022 – 31st March 2022


1st October 2021 – 31st December 2021


1st July 2021- 30th September 2021


1st April 2021 - 31st July 2021


1st January 2021 - 31st March 2021


1st October 2020 – 31st December 2020


1st July 2020 - 30th September 2020


1st April 2020 - 30th June 2020


1st January 2020 - 31st March 2020


1st October 2019 - 31st December 2019


1st July 2019 - 30th September 2019


1st April 2019 - 30th June 2019


1st January 2019 - 31st March 2019


1st October 2018 - 31st December 2018


1st July 2018 - 30th September 2018


1st April 2018 - 30th June 2018


1st January 2018 - 31st March 2018


1st October 2017 - 31st December 2017


1st July 2017 - 30th September 2017


1st April 2017 - 30th June 2017


1st January 2017 - 31st March 2017


1st October 2016 - 31st December 2016


1st July 2016 - 30th September 2016


1st April 2016 - 30th June 2016


How is the PPF Interest Rate Calculated?

PPF interest compounded every year. The formula to calculate PPF interest is F=P[({(1+i)^n}-1)/i], where:-

  • F stands for Maturity Amount
  • P stands for Annual Installment
  • N stands for Number of Year
  • I stands for Interest Rate/100

Public Provident Fund (PPF) Calculator

PPF calculator is an online digital tool through which you can check the future value of your PPF investments. If you invest in a Public Provident Fund Scheme, you would like to know how your investment will grow over the investment period. So, the PPF calculator calculates year-wise PPF returns based on the contributions to your PPF account.

Factors Affecting PPF Interest Rate

There are several factors that influence the PPF interest rate, which include:

  • Economic Conditions: Current economic conditions, such as inflation rate, GDP growth and fiscal policies, play an important role in influencing the PPF interest rate. In times of high inflation, interest rates are higher to provide actual returns to investors.
  • Government Policies: The monetary and fiscal policies of the government influence the interest rates of the PPF Scheme. Changes in government policies, such as liquidity management measures or focus on specific sectors, can affect the PPF interest rate.
  • Market Conditions: The performance of financial markets and the cost of government borrowing also affect the PPF interest rate. If the government needs to borrow from the market at higher rates, it may impact the interest rates on PPF.

Comparison of PPF Interest Rate with Other Investment Options

In the table below, we have shown a comparison of PPF interest rates with other investment options:

Investment Options

Interest Rate

Investment Tenure

Public Provident Fund


15 years

Sukanya Samriddhi Yojana


21 years from the date of opening of the account or upon the marriage of the account holder, whichever is earlier

National Saving Certificate (NSC)


5 years

Post Office Time Deposit Account


5 years

Tax Saver Fixed Deposit


5 years


PPF interest rate is important in determining the growth of investments made in PPF accounts. Understanding its historical trends and the factors influencing it and employing effective strategies can help individuals maximize their returns. By staying informed and making informed decisions, investors can harness the potential of PPF as a reliable long-term investment option and meet their financial goals.

PPF Interest Rate FAQs

  1. What is the current PPF interest rate?

Ans. The current PPF interest rate is 7.1%.

  1. How often is the PPF interest rate reviewed?

Ans. The rate is reviewed quarterly by the Ministry of Finance.

  1. Can the future PPF interest rate be predicted?

Ans. No, future revisions depend on various economic factors and are unpredictable.

  1. Can I get tax benefits on the interest earned?

Ans. Yes, PPF offers "EEE" status, meaning the interest earned is exempt from taxes.

  1. How does inflation affect my returns?

Ans. The fixed-rate might not always outpace inflation, potentially eroding purchasing power.

  1. What are the liquidity limitations of PPF?

Ans. There's a 15-year lock-in period with limited withdrawal options, impacting accessibility.

  1. Where can I find a reliable PPF calculator?

Ans. Numerous online calculators are available from banks, financial websites, and the government.

  1. Should I consult a financial advisor?

Ans. Yes, they can help personalize your investment strategy based on your goals and risk tolerance.


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