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Current PPF Interest Rate 2023: Current Rate in SBI, HDFC, ICICI, Post Office

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The government of India revised the PPF interest rates last year for the quarter (April-June) of 2020  to 7.10%. Since then, the government has decided to keep the PPF interest rates unchanged throughout the 2021-22 financial year.

In 2019, the government of India has replaced the old PPF Scheme 1968 with the updated PPF Scheme 2019. The new scheme brought 5 changes to the old scheme. 

  • Interest payable on loan from PPF account reduced  from 2% to 1%
  • More premature closure options available now 
  • The clear clause on PPF account after maturity 
  • Now, no restrictions on the number  of deposits 
  • New forms replaced the old forms under the new PPF scheme

Let’s have a detailed discussion on the PPF interest rates as per the new PPF Scheme 2012.

PPF Interest Rate Latest

The current PPF interest rate is 7.1% applicable from 1 April 2020. You will get the same PPF interest rate across all the banks like SBI, ICICI, PNB, HDFC, and post office. 

If you haven’t open a PPF account yet, then I would suggest you to open with the bank in which you already have the savings account. 

You can easily transfer money online to your PPF account from your bank account, which couldn’t be possible in a post office PPF account. 

PPF Interest Rates (1986 – 2023)

PPF was one of the best and secure investments with a guarantee of high returns.  But, in recent pact the interest rates changed dramatically according to the shift in banking policies.  Let’s have a look at the interest rates fixed by the government starting from 1986 till now.

YearPPF Interest Rate
1/04/2016 – 30/09/20168.1%
1/10/2016 – 31/03/20178.0%
1/04/2017 – 30/06/20177.9
1/07/2017 – 30/09/20177.8%
1/10/2017 – 31/12/20177.8%
1/01/2018 – 31/03/20187.6%
1/04/2018 – 30/06/20187.6%
1/07/2018 – 30/09/20187.6%
1/10/2018 – 31/12/20188.0%
1/01/2019 – 31/03/20198.0%
1/04/2019 – 30/06/20188.0%
1/07/2019 – 30/09/20197.9%
1/10/2019 – 31/12/20197.9%
1/01/2020 – 31/03/20207.9%
1/04/2020 – 31/03/20237.1%

How PPF Interest is Calculated

The interest  on PPF investments is compounded on an annual basis.

The formula to calculate PPF interest is M = P[({(1+i)^n}-1)/r]


  • M = Maturity amount (that precede to PPF amount)
  • P = Principal  amount ( annual installments)
  • n = Number of years 
  • r = Rate of interest/100

For example, if you annually invest Rs.1,00,000 towards your PPF account for 15 years at 8.0% (for easy calculation), your maturity proceeds at the end of 15 years would be Rs. 29,32,428.

Frequently Asked Questions

You will get answers to all your queries related to PPF as I have curated a list of all the essential questions.

#1. Can We Open The PPF Account Online

Yes. You can open the PPF account online with banks only. The post office doesn’t offer an online procedure. 

You have to fulfill the conditions given below to open a PPF account online.

  • You should have a savings account in the same bank where you are applying for a PPF account
  • Netbanking should be active on your account
  • Your Aadhaar must be linked to the savings account
  • Your mobile number should be registered with Aadhaar

#2. Can I Take a Loan Against the PPF Amount

You can take a loan against your PPF investment between the 3rd and 6th financial years of account opening.

Other important information regarding the loan against the PPF account are  as below:

  • You can take loan up to 25% of the balance at the end of the second year
  •  Interest on the loan is charged at the rate of 1% per annum and you don’t earn any interest on the rest of the deposited amounts until the loan is repaid
  • If you fail to repay the loan within 36 months, you will have to pay 6% extra interest and the amount will be debited from your PPF account at the end of each financial year
  • You can take the second loan after repaying the first one within the allowed period of 3rd and 6th financial years

#3. What is the Best Time to Invest in PPF

You can get better returns if you invest between the 1st and 5th of any month because interest is calculated between the end of the 5th day and the end of the month. 

If you invest on the 6th of the month or any date onwards, you will miss the interest for that month.

#4. Which is the Better – PPF or ELSS Funds

The common thing between ELSS vs PPF is that both are tax-saving investments along with the tax-free returns. But both the categories of investments are different.

PPF  is a fully secured instrument but potentially less money yielding. On the other side, ELSS is a high potential segment with a higher risk.

So, it all depends on the risk appetite of the investor whether he is a risk-taker or a secure player.

#5.  Can I Close a PPF Account Prematurely

No, a PPF account cannot be closed prematurely, except in the case of account holder death.

#6.  How Can I Nominate or Change the Nominee

You can nominate a nominee while opening the PPF account, or anytime after the account is opened. You are required to fill nomination Form-1 (earlier Form-E) to nominate your nominee.

To change your nominee anytime by filling the same Form-1 (earlier separate Form-F was used).

#7. What Happens if I Forget to Invest For One Year

Your account will be deactivated if you don’t invest for one year. In order to reactivate, you have to pay a fine of Rs 50 for each year along with a minimum Rs 500 for each year you have missed.

The best thing is to set an auto-transfer from your savings account to the PPF account to avoid missing any installment.

#8. Do the Contributions to My Dependent’s PPF accounts Come Under Tax Deductions

Yes, you get a tax rebate on any contribution towards your own account, spouse, and minor child’s account under sec 80c.

#9. How Much Maximum Tax Deduction Can I Claim

You can claim a maximum deduction of Rs 1.50 lakh against your collective contribution to your and your dependent’s accounts.

#10. Can I Transfer My PPF Account 

You can’t transfer your PPF account from one person to another. However, you can transfer from one authorized bank or post office to another.

#11. Can NRI Open PPF Account 

No, an NRI is not eligible to open a new PPF account. But, you are eligible to invest in the old account (that you have opened before moving abroad) until it matures.

#12. What Are The Important Forms as per New PPF Scheme 2019

New forms replaced the older ones as per the new PPF Scheme 2019 are as below:

  • Form A changed to Form 1 – Account opening form 
  • Form C & D changed to Form 2 – Partial withdrawals and loans
  • Form C to Form 3 – Account closure after maturity
  • Form E to Form 1 – Nomination.
  • Form H to Form 4 – Extension period form
  • Form G to Form 5 – Premature closure/ Deceased claim

Also read – INDMoney Review (US stock investment made easy)


A PPF account is a good option than a fixed deposit because you get better returns with tax benefits. PPF account is a safe bet if you don’t want to risk your money in mutual funds or stocks

Let me know if you have any questions regarding a PPF account in the comment section. I will update my FAQ list if I find anything missing.


5 thoughts on “Current PPF Interest Rate 2023: Current Rate in SBI, HDFC, ICICI, Post Office”

  1. Hi Team, Is PPF interest rate for all Banks and Post Office are same for all times (or) is different from all banks and Post Office as per the rules?

  2. PPF account is very popular & safety scheme which will give me confidence in my future life and also my family.


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