PPF: The most popular small savings scheme among working people is the Public Provident Fund (PPF). Investing in this scheme can help generate a substantial amount of money over the long term. Recently, the central government decided on the interest rates for PPF and other small savings schemes. Let’s explore the government’s decision regarding the scheme and its key features.

What is the interest rate for which scheme?

The central government has once again decided to keep interest rates unchanged. This is the seventh consecutive quarter without any changes. These rates for small savings schemes will be applicable from January 1, 2026, to March 31, 2026. The interest rate on the Sukanya Samriddhi Yojana will remain at 8.2 percent, while three-year term deposits will be at 7.1 percent. Furthermore, the Public Provident Fund (PPF) and post office savings deposit schemes will remain at 7.1 percent and 4 percent, respectively.

The Kisan Vikas Patra (KVP) will have an interest rate of 7.5 percent, maturing in 115 months. The National Savings Certificate (NSC) rate will remain at 7.7 percent for the January-March quarter. Similarly, investors will receive 7.4 percent interest on the Monthly Income Scheme, as before. The government last revised the rates for some schemes in the fourth quarter of 2023-24.

About PPF

The current interest rate on the Public Provident Fund, or PPF, popular among working professionals, is 7.1% per annum. This scheme is attractive due to its zero default risk. It offers a 100% guarantee on both principal and returns. Furthermore, PPF does not pay interest periodically; it accumulates over time. The minimum lock-in period for PPF is 15 years, although early withdrawal options are available.

Once 15 years are completed, PPF can be extended for another 5 years, but not more. The contribution limit for PPF is Rs 1.50 lakh per year, and you cannot invest more than this amount per PPF account. The minimum annual investment in PPF should be Rs 500.