What is the current PPF interest rate 2026?+
The PPF interest rate for Q1 FY 2025-26 is 7.1% per annum, compounded annually. The government revises PPF rates every quarter (April, July, October, January) but has kept it at 7.1% since April 2020. PPF interest is credited on 31st March every year.
What is the maximum PPF investment limit?+
Maximum PPF investment: ₹1,50,000 per year per account. Minimum: ₹500 per year. You can make up to 12 deposits in a financial year. Amounts can be deposited as lump sum or in monthly/quarterly installments. Deposits made between 1st–5th of the month earn interest for that full month, so invest early in the month.
Is PPF completely tax-free?+
Yes, PPF is EEE (Exempt-Exempt-Exempt): Investment is deductible under Section 80C (up to ₹1.5 lakh). Interest earned is completely tax-free. Maturity amount is fully tax-free. PPF is one of the very few truly tax-free investment options in India, making it extremely tax-efficient especially for those in the 30% tax bracket.
Can I withdraw from PPF before maturity?+
PPF has a 15-year lock-in. However: Partial withdrawal is allowed from the 7th year onwards (up to 50% of balance at end of 4th year or 50% of previous year balance, whichever is lower). Premature closure is allowed from the 5th year in special cases: serious illness, higher education, NRI status change. Full withdrawal only at 15 years.
Can I extend PPF after 15 years?+
Yes, after 15 years you can extend PPF in blocks of 5 years indefinitely (20, 25, 30 years...). Two options: With contributions (continue depositing, earn interest, maintain 80C benefit). Without contributions (no new deposits, balance keeps earning 7.1% interest, 1 withdrawal allowed per year). Extension must be applied within 1 year of maturity.
What happens if I miss PPF deposit for a year?+
If you fail to deposit the minimum ₹500 in a financial year, your PPF account becomes 'inactive'. To reactivate: pay ₹50 penalty per defaulted year + ₹500 minimum for each defaulted year. Example: 3 years default = ₹150 penalty + ₹1,500 minimum deposits. Reactivation must be done before the account matures.