PPF Rate Frozen at 7.1%: What You Lose This Quarter

The government kept PPF interest at 7.1% for October–December 2026. No hike. Your tax-free savings keep earning the same rate as last quarter — but inflation is eating into real returns.

Here's what happened: The Ministry of Finance has kept the PPF interest rate unchanged at 7.1% per annum for the October–December 2026 quarter.. All other small savings schemes — including NSC, Senior Citizens Savings Scheme, and Post Office FDs — also saw no rate changes this review.. PPF accounts have a 15-year lock-in; interest is compounded annually and the entire maturity corpus is tax-free under EEE status..

What you should do: Deposit your PPF contribution before the 5th of any month so that month's balance earns interest — deposits after the 5th lose one month of compounding.. Compare PPF's 7.1% tax-free return against your bank FD's post-tax yield; for someone in the 30% slab, a 7.1% tax-free return beats a 10.1% taxable FD.. Check whether you have topped up to the ₹1.5 lakh annual limit for FY2026–27 — any unused limit is permanently lost after March 31, 2027..

PPF interest is calculated on the lowest balance between the 5th and last day of each month — always deposit before the 5th to avoid losing a full month of interest on your contribution.