PPF Interest Rate History 1968 to Present

Published: September 2, 2020 at 6:44 pm

This is a table of PPF interest rates from 1968 to the present. The current PPF Interest Rate (April to Sep 2020) is 7.10%.

PPF Interest Rate History 1968 to Present

PeriodPPF Interest Rate
01.04.2020 to 30.09.20207.10%
01.07.2019 to 31.03.20207.90%
01.10.2018 to 30.06.20198.00%
01.01.2018 to 30.09.20187.60%
01.07.2017 to 31.12.20177.80%
01.04.2017 to 30.06.20177.90%
01.10.2016 to 31.03.20178.00%
01.04.2016 to 30.09.20168.10%
2013-14 to 2015-168.70%
01.12.2011 to 31.03.20128.60%
01.03.2003 to 30.11.20118%
01.03.2002 to 28.02.20039%
01.03.2001 to 28.02.20029.50%
15.01.2000 to 28.02.200111%
01.04.1999 to 14.01.200012%
1986-87 to 1998-9912%
01.08.1974 to 31.03.19757%
01.04.1974 to 31.07.19745.80%

Public Provident Fund (PPF) is a popular tax saving instrument available in India. It was introduced by the Government of India in 1968 and the scheme is fully guaranteed by the Government. NRIs are not allowed to open new PPF accounts but can continue their existing accounts till maturity (15 years). A person can open only one PPF account for himself and one account each for minors of whom he’s a parent/guardian. No joint PPF accounts are allowed. The duration of the scheme is 15 years extendable for 1 or more blocks of 5 years each.

Minimum yearly deposits in the scheme are Rs 500 and the maximum limit is Rs 1.5 lakh per annum. Any amount deposited in excess of Rs 1.5 lakh in a financial year doesn’t earn any interest. PPF investments enjoy the Exempt-Exempt-Exempt (EEE) status. This means that deposits made in PPF up to Rs 1.5 lakh per year are deductible under Section 80C of the Income Tax Act and the accumulated amount, as well as interest, is tax-free during accrual and at the time of withdrawal. A person can also make investments in PPF account of his/her spouse. The interest and maturity proceeds remain tax-free in this scenario.

The original PF scheme was replaced by the Public Provident Fund Scheme, 2019 on 12.12.2019. Some key changes were:

  • Lower interest on loan against PPF of 1% above the prevailing PPF rate (was 2% earlier).
  • Grounds for premature closure after completion of five financial years were extended to include higher education of dependent children and change in account holder’s residency status. Earlier, premature closure was only allowed in case of serious ailments or life-threatening diseases affecting the account holder, spouse, dependent children or parents and for the higher education of the account holder.
  • No upper limit on the number of deposits in a year, subject to the maximum amount of Rs 1.5 lakh. The deposits can be in multiples of Rs 50. Earlier, the maximum limit was 12 deposits in a year in multiples of Rs 5.

The PPF interest rates have fluctuated since the scheme began in 1968-69. The golden period was 1986-87 to 14.01.2000 when the rates were as high as 12%. The current rates are lowest since 1976-77. The

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