How to Get Maximum Interest in PPF Account (FY 2026-27)

Yes, you can claim deductions of up to Rs.1.5 lakh on your Public Provident Fund contribution amount. This is applicable as per Section 80C of the Income Tax Act.   

As per government rules, you need to deposit at least Rs.500 within a financial year in order to keep your PPF account active. In case your account gets discontinued due to failure to deposit the minimum amount, you have to pay Rs.500 along with a penalty of Rs.50 to activate it again.  

There are no limits to the number of times you can deposit funds in your PPF account within a given financial year. However, within this time period, you can deposit a minimum and maximum amount of Rs.500 and Rs.1.5 lakh respectively. 

Yes, you can partially withdraw a maximum of 50% of the current balance from your PPF account after 6 years. Moreover, you can prematurely withdraw the entire balance after 5 years, in case you need funds for medical or educational reasons. 

No, according to Section 80C of the Income Tax Act, whether you withdraw partially or prematurely from your Public Provident Fund amount, there are no tax implications. Furthermore, there is also no tax for the saved amount or the interest that you earn.

If a resident Indian becomes an NRI, they can continue their PPF account until maturity but cannot open a new PPF account as an NRI. However, from September 30, 2024, NRI PPF accounts no longer earn interest - the rate is treated as zero until maturity.

Yes. A parent or guardian can open a PPF account for a minor. However, a minor's PPF account earns interest at the Post Office Savings Account (POSA) rate of 4% p.a. (not 7.1%) until the minor turns 18. The 15-year maturity period starts from the date the minor turns 18, not from the account opening date.

You can only hold one PPF account in your name. If you accidentally open a second account, only the primary account earns interest at the PPF rate. The second (irregular) account is treated as void and earns only the Post Office Savings Account rate (4%). You must merge or close the second account. 

Under the Income Tax Act 2025, PPF contributions are deductible under Section 123 (equivalent to Section 80C of the Income Tax Act 1961). The maximum deduction is Rs. 1,50,000 per year. Interest earned on PPF and the maturity amount are both fully exempt (EEE status). Note: This deduction is available under the old tax regime only; it is not available if you opt for the new regime under Section 202 (default regime from Tax Year 2023-24 onwards).

Yes. You can take a loan against your PPF account from the 3rd financial year to the 6th financial year (i.e., from the beginning of FY 3 to the end of FY 6). The loan amount is limited to 25% of the balance at the end of the 2nd preceding year. The loan must be repaid within 36 months; if not repaid within 36 months, the interest rate rises from 1% above the PPF rate to 6% above the PPF rate.

Partial withdrawal from a PPF account is permitted from the 7th financial year (i.e., from the beginning of FY 7). The maximum amount that can be withdrawn is 50% of the balance at the end of the 4th preceding year or 50% of the balance at the end of the immediately preceding year, whichever is lower. Only one withdrawal is permitted per year.

No. PPF accounts have full attachment immunity under Section 9(3) of the PPF Scheme, 2019. Your PPF balance cannot be attached, sequestered, or seized in execution of a court decree. This makes PPF one of the most legally protected savings instruments in India — an important distinction for business owners and professionals.

The PPF interest rate has changed several times. It was as high as 12% in the early 1990s and was progressively reduced. Key recent rates: FY 2016-17: 8.1%, FY 2017-18: 7.6%, FY 2018-19: 8.0%, FY 2019-20: 7.9%, FY 2020-21: 7.1%, FY 2021-22: 7.1%, FY 2022-23: 7.1%, FY 2023-24: 7.1%, FY 2024-25: 7.1%, FY 2025-26: 7.1%, FY 2026-27 (Q1): 7.1%. The rate has been unchanged at 7.1% since April 2020.

Yes. After 15 years, you can extend your PPF account in blocks of 5 years by submitting Form H before the account matures. You can extend with contributions (continue investing up to Rs. 1.5L/year and earn interest + tax deduction) or without contributions (account earns interest on existing balance without new deposits). During an extension without contributions, you can withdraw up to 60% of the balance at the start of each extension block.

To open a PPF account, you need: 

(1) KYC documents — Aadhaar card (for eKYC / biometric authentication available from July 27, 2026) or other OVD (Officially Valid Document); 
(2) PAN card; 
(3) Passport-size photograph; 
(4) Nomination form (Form E); 
(5) Initial deposit (minimum Rs. 500, cheque or online transfer). 

Most public sector banks, Post Offices, and major private banks (HDFC, ICICI, Axis) now support fully online/paperless PPF account opening via Aadhaar OTP.