The government left the PPF rate at 7.1% for October to December 2026. That is the tenth quarter in a row without a change in small savings rates. It is a good moment to look at a rule most savers never notice: PPF interest is worked out on the lowest balance between the 5th and the end of each month. Put money in on the 4th or on the 6th, and the same ₹1.5 lakh can earn different interest for that month.
The rates for this quarter
These rates apply from 1 October to 31 December 2026 and are unchanged from July to September, according to Angel One's report of 1 October:
PPF: 7.1%
Sukanya Samriddhi Yojana: 8.2%
Senior Citizen Savings Scheme: 8.2%
National Savings Certificate: 7.7%
Post Office Monthly Income Scheme: 7.4%
Kisan Vikas Patra: 7.5%
Post office time deposits: 6.9% for one year, 7.0% for two, 7.1% for three and 7.5% for five
Five-year recurring deposit: 6.7%
The Free Press Journal and Outlook Money report the same PPF, NSC and Sukanya rates and the tenth-quarter streak. I could not open the Finance Ministry's own notification, so check the rate with India Post or your bank before you rely on it.
The rate is reviewed every quarter. That means 7.1% is not a promise for 15 years. It is the rate for these three months.
How PPF interest is calculated
As Scripbox's PPF rules page explains, interest is calculated every month on the lowest balance in your account between the close of the 5th and the last day of that month. It is credited once a year, on 31 March. Other basics from the same page:
Minimum deposit ₹500, in multiples of ₹50. Maximum ₹1.5 lakh in a financial year.
The lock-in is 15 years, and the account can be extended in blocks of 5 years.
Partial withdrawal is possible after 7 years, up to 50% of an earlier year's balance (the lower of two defined figures).
Closing early is possible after 5 years, with a 1% cut in the rate.
The practical meaning of the 5th rule: a deposit made by the 5th counts for that whole month. A deposit on the 6th does not count until the next month.
A worked example in rupees
Assume the rate stays at 7.1% all year, which it may not. Take ₹1.5 lakh for the financial year.
Option A, one deposit by 5 April. The balance is ₹1,50,000 for all 12 months. Interest is ₹1,50,000 × 7.1% = ₹10,650.
Option B, ₹12,500 a month, each by the 5th. The lowest balance climbs ₹12,500 every month, from ₹12,500 in April to ₹1,50,000 in March. Add up the twelve months of interest at 7.1% divided by 12 and you get about ₹5,769.
The gap is roughly ₹4,881 for the year. That is the cost of spreading the same amount over twelve months instead of depositing it up front.
Option C, a missed 5th. If you meant to put ₹1.5 lakh in on 4 April but did it on 6 April, you lose April's interest on it: ₹1,50,000 × 7.1% ÷ 12 = ₹887.50.
These are my own calculations from the rule as described, not figures from any official table. They assume the rate does not change.
What this means in practice
If you can afford it, an early lump sum earns more than monthly deposits. If you cannot, monthly deposits are fine. The key is to make each one before the 5th.
Over 15 years, depositing ₹1.5 lakh each April by the 5th at a constant 7.1% would grow ₹22.5 lakh of deposits to about ₹40.7 lakh. That is an illustration only. The rate will change many times in 15 years, and it can go down as well as up. No quarterly rate is a guarantee of what you will earn.
A bonus or tax refund that arrives early in the financial year is worth a thought. Putting it in before the 5th of that month beats letting it sit in a savings account until later.
Setting it up so you never miss the 5th
If you save monthly, the simplest fix is to move your deposit date earlier than the 5th. Set a standing instruction or a calendar reminder for the 1st to 3rd of each month, so a late salary or a bank holiday does not push the deposit past the cut-off. Check with your bank which date counts for an online transfer, the day you send it or the day it is credited, and leave a day of margin either way.
If you invest a yearly lump sum, do it in the first days of April, before the 5th. That is the same logic as Option A above.
What happens after 15 years
Scripbox says the account can be extended in blocks of 5 years. After maturity, you can withdraw the full balance, or keep the account open without further deposits, and it keeps earning interest. Closing early is possible after 5 years at a 1% lower rate, and partial withdrawals start from year 7. Those options are why many people treat PPF as a long-term pot rather than an emergency fund.
Who can open one
According to Scripbox, only resident Indians can open a PPF, one account per person, with one more allowed for a minor. HUFs and NRIs cannot. Interest, deposits and withdrawals are described as exempt from tax, with deposits eligible for Section 80C up to ₹1.5 lakh.
This is general information, not financial advice. PPF suits some goals and not others, so match it to your own timeline.