PPF Interest Rate

Discover the PPF interest rate for 2024 and plan your investments wisely for maximum returns and financial security.
PPF Interest Rate
3 min
10 April 2024

The Public Provident Fund (PPF) scheme is a safe and popular government-backed savings facility that was introduced in 1968, offering its first subscribers an assured PPF interest rate of 4.8% p.a. The intent to promote savings amongst individuals was further incentivised by the provision of attractive tax benefits—both on deposits and withdrawals. The current PPF Interest rate 2023-24 (as of March 31) is 7.1% p.a.

Funds deposited by individuals into the PPF are pooled into the Government of India’s National Small Savings Fund (NSSF), which are further invested across Central and State Government securities and public agencies like NHAI and Food Corporation of India. The interest income generated from PPF deposits is a by-product of income from these investments, making the PPF interest rate a sovereign guaranteed rate.

What are the key features of PPF?

  • Maturity: 15 years with an option to extend in blocks of 5 years with further deposits.
  • Deposit limits: A PPF account requires a minimum deposit of Rs. 500; subscribers may invest a maximum of Rs. 1,50,000 in a financial year.
  • Tax benefit: Investments in PPF are eligible for 80C tax deductions, and interest earned from PPF is tax-exempt.
  • Assured returns: The PPF interest rate in force from 1st April 2020 until 31st March 2024 is 7.1% per annum.
  • Loan facility: PPF account holders may apply for a loan against the PPF between the 1st FY and the 5th FY from the date of opening the account.
  • Minor account: Parents or guardians may open a PPF account in the name of a minor independent of their individual account
  • Joint account: The PPF scheme does not allow for joint account holders
  • Deposit mode: Investors may deposit funds into their PPF account via online transfer, cheque, Demand draft and/or cash.

If you are looking for a safe investment option, you can consider fixed deposit. They offer guaranteed returns and a fixed interest rate throughout your investment tenure.

PPF interest rate trend

The PPF interest rate is subject to change every quarter based on the notifications issued by the Government of India in this regard.

The table below outlines the historical movement of the PPF interest rate. This shows that the PPF interest rate has dropped by 1% over the past 10 years.

Financial Year PPF Interest Rate (%)
01-Apr-23 to 31-Mar-24 7.1
01-Apr-22 to 31-Mar-23 7.1
01-Apr-21 to 31-Mar-22 7.1
01-Apr-20 to 31-Mar-21 7.1
01-Jul-19 to 31-Mar-20 7.9
01-Apr-19 to 30-Jun-19 8.0
01-Oct-18 to 31-Mar-19 8.0
01-Apr-18 to 30-Sep-18 8.0
01-Jan-18 to 31-Mar-18 7.6
01-Jul-17 to 31-Dec-17 7.8
01-Apr-17 to 30-Jun-17 7.9
01-Oct-16 to 31-Mar-16 8.0
01-Apr-16 to 30-Sep-16 8.1
01-Apr-15 to 31-Mar-16 8.1
01-Apr-14 to 31-Mar-15 8.1
01-Apr-13 to 31-Mar-13 8.1

Also read: PPF vs Bajaj Finance FD

PPF account interest rate calculation

Now that you have an understanding of what PPF is all about, the key features of a PPF account, what PPF interest rate is and current and historical PPF interest rate trends, let us move on to how it works. How is the interest rate on a PPF account calculated?

The technical formula is F = P[({(1+i)^n}-1)/i], where the following terms are abbreviated -

F = Maturity proceeds of the PPF
P = Annual instalments
n = number of years the PPF account is held
i = rate of interest / 100

Let us walk through an example to see how this formula is applied. Assume an individual deposits the maximum amount of Rs. 1,50,000 on an annual basis for 15 years at a PPF interest rate of 7.1%. The investment amount on maturity will be approximately Rs. 40,47,214. Of course, you do not need to break your head and manually calculate the interest rate on your PPF investment. The above formula is explained so you may have a conceptual understanding.

The above calculation can be easily done using the Bajaj Finserv PPF Calculator. Here’s how to use the PPF calculator:

The PPF calculator is an online tool that can provide instant results on what an individual’s PPF maturity amount will be. All you need to do is input the values related to:

  1. Frequency of investment (monthly / quarterly / half-yearly / yearly)
  2. Annual PPF investment amount
  3. PPF interest rate 2024 (current) is pre-filled
  4. Duration of investment (15 to 50 years)

In the click of a button, the PPF maturity amount is displayed on screen. This tool will be indispensable as you plan your medium and long-term savings goals.

What is so special about the PPF

While we now know about PPF, you might wonder how this scheme differs from some of the other investment options available. The PPF scheme enjoys an Exempt-Exempt-Exempt (EEE) status. This means:

  • All the deposits to the PPF account qualify for income tax deductions
  • All the interest earned from the PPF account is tax-free (PPF interest rate 2024 = 7.1%), and
  • All the income generated from the PPF investment is tax-free in the hands of the individual investor upon withdrawal


Today, investors have a diverse array of options and avenues to save for the future or invest idle funds at a minimum risk—government-backed and private. One such avenue is the PPF, which is a low-risk investment option with guaranteed returns. You can also enjoy tax benefits, along with a loan against the PPF facility. Traditionally, PPF interest rates have made them a preferred investment vehicle for risk-averse investors.

However, the PPF interest rate has been on a declining trend in recent years, and there is no harm in individuals exploring similar investment schemes offering higher rates of return. One such option is the Bajaj Finance Fixed Deposit, which offers interest rates up to 8.85% per annum.

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As regards deposit taking activity of Bajaj Finance Ltd (BFL), the viewers may refer to the advertisement in the Indian Express (Mumbai Edition) and Loksatta (Pune Edition) furnished in the application form for soliciting public deposits or refer https://www.bajajfinserv.in/fixed-deposit-archives
The company is having a valid Certificate of Registration dated March 5, 1998 issued by the Reserve Bank of India under section 45 IA of the Reserve Bank of India Act, 1934. However, the RBI does not accept any responsibility or guarantee about the present position as to the financial soundness of the company or for the correctness of any of the statements or representations made or opinions expressed by the company and for repayment of deposits/discharge of the liabilities by the company.

For the FD calculator the actual returns may vary slightly if the Fixed Deposit tenure includes a leap year.