PPF Interest Rate (October–December 2026): If you are planning to invest in the Public Provident Fund (PPF), this news is significant for you. There have been no changes to the PPF interest rate for the October–December 2026 quarter. After reviewing interest rates for small savings schemes, the Central Government decided to maintain the rates for all schemes at the same level as the previous quarter.

This means that PPF investments will continue to earn an annual interest rate of 7.10% during the October–December period. The Department of Economic Affairs issued this decision for the 2026–2027 financial year on September 30, 2026. Let us look at the details.

Changes to PPF Interest Rates

The PPF interest rate has remained at 7.10% for quite some time. The government has not increased the rate for the October–December quarter either. Investors who were hoping for a hike in the PPF rate will have to accept the current 7.10% rate for now. PPF interest rates are determined by the government every quarter during the review of small savings schemes.

Investment Tenure

PPF is a long-term savings scheme. Investors can invest in it for a period of 15 years. Contributions can range from a minimum of ₹500 to a maximum of ₹1.5 lakh per financial year. Generally, an individual can hold only one PPF account. This account can be opened at a post office or a bank. Upon completion of the initial 15-year term, the account can be extended in blocks of 5 years.

Tax Benefits

Investors in PPF also enjoy tax benefits. This means the returns earned are subject to minimal taxation, allowing you to retain a larger portion of the gains after tax. It offers a deduction of up to ₹1.5 lakh under Section 80C of the Income Tax Act. This benefit is available under the old tax regime. Interest earned and the maturity proceeds from the PPF account are also tax-exempt; PPF falls under the EEE (Exempt-Exempt-Exempt) category. Eligibility depends on your income and the chosen tax regime.

Mandatory annual deposit of ₹500

To keep the PPF account active, a minimum deposit of ₹500 per year is required. Failure to make the minimum contribution in a given year can lead to the account becoming inactive. To reactivate it, one must pay the outstanding dues and the applicable penalty, in accordance with the rules.

Facility for partial withdrawal

The PPF scheme allows for partial withdrawals, subject to specific conditions. Generally, the withdrawal facility is available from the seventh financial year onwards. This scheme is used not only to earn interest but also to meet long-term financial goals.