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All You Need To Know About PPF Interest Rates in 2022

27 Jul 2022

3 min

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What is PPF?

PPF Interest Rate FY 2022-23

The Finance Ministry has maintained the present PPF account interest rate of 7.10 percent per annum for the quarter April 2022 to June 2022 of FY 2022-23. Every month, interest is computed and credited to the investor's account at the end of the year. To earn interest for the full month, the investor needs to invest a specific amount of money every month before the 5th. In this method, the investor may get the best possible return on his or her investment.

Year	PPF Interest Rate
April 1 2020 to June 30, 2022	7.10%
July 1, 2019 to March 31, 2020	7.90%
October 1, 2018 to June 30, 2019	8%
January 1, 2018 to September 30, 2018	7.60%
July 1, 2017 to September 30, 2017	7.80%
April 1, 2017 to June 30, 2017	7.90%
October 1, 2016 to March 31, 2017	8%
April 1, 2016 to September 30, 2016	8.10%
April 1, 2014 to March 31, 2016	8.70%
April 1, 2013 to March 31, 2014	8.70%
April 1, 2012 to March 31, 2013	8.80%
December 1, 2011 to March 31, 2012	8.60%
April 1, 2011 to November 30, 2011	8%
March 1, 2003 to March 31, 2011	8%
April 1, 2002 to February 28, 2003	9%
March 1, 2002 to March 31, 2002	9%
March 1, 2001 to February 28, 2002	9.50%
January 15, 2000 to February 28, 2001	11%
April 1, 1999 to January 14, 2000	12%
1988 – 89	12%
1987 – 88	12%
1986 – 87	10%
1985 – 86	9.50%
1984 – 85	9%
1983 – 84	8.50%
1982 – 83	8.50%
1981 – 82	8%
1980 – 81	7.50%
1979 – 80	7.50%
1978 – 79	7.50%
1977 – 78	7%
1976 – 77	7%
1975 – 76	7%
1974 – 75	5.80%
1973 – 74	5.30%
1972 – 73	5%
1971 – 72	5%
1970 – 71	5%
1969 – 70	4.80%
1968 – 69	4.80%

How Is PPF Interest Rate Calculated?

The lowest balance in the PPF account between the 5th and the end of the month is used to compute interest.
If you makes a deposit before the 5th of each month, you will get interest for that month's investment. Otherwise, interest is based on the PPF account's prior balance.
If a monthly PPF investment is made, investing before or after the fifth month will have a negligible influence on the PPF interest of a few hundred rupees.
If an investor is making a lump-sum annual investment in a PPF plan, they should do it before April 5th. For the month of April, the interest earned will be applied to a larger balance.

1. Monthly Payments

For example, you're putting money into his PPF account. Assume that the PPF interest rate is 7.9% per year. With the example below, you can see how to calculate interest. The table shows how PPF account interest is calculated. In essence, if you miss payments, you will lose interest, decreasing the total amount of interest received.

Date of investment	Balance on the 5th of the month (Rs)	Interest credited (Rs)
02-04-2021	10,000	65.83
02-05-2021	20,000	131.67
07-06-2021	20,000	131.67
13-07-2021	30,000	197.50
03-08-2021	50,000	329.17
02-09-2021	60,000	395.00
02-10-2021	70,000	460.83
02-11-2021	80,000	526.67
02-12-2021	90,000	592.50
02-01-2021	100,000	658.33
02-02-2021	110,000	724.17
02-03-2021	120,000	790.00
		5003.34

2. Lump sum Payments

For example, suppose you make a one-time investment in the month of April. In this example, the interest rate calculating procedure is as follows:

Date of investment	Balance on the end of the month (Rs.)	Interest credited (Rs.)
02-04-2021	150,000	987.50
02-05-2021	150,000	987.50
07-06-2021	150,000	987.50
13-07-2021	150,000	987.50
03-08-2021	150,000	987.50
02-09-2021	150,000	987.50
02-10-2021	150,000	987.50
02-11-2021	150,000	987.50
02-12-2021	150,000	987.50
02-01-2021	150,000	987.50
02-02-2021	150,000	987.50
02-03-2021	150,000	987.50
		11,850.00

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Frequently Asked Questions on PPF Interest Rate

How can I get maximum PPF interest?

Every month, invest before the 5th of the month. The lowest balance between the 5th and the final day of each month is used to compute PPF interest. If you deposit Rs 10,000 on January 2nd and another Rs 10,000 on January 15th, the interest will be computed on just Rs 10,000, not Rs 20,000.

What are the PPF interest tax benefits¹?

Under section 80C of the Income-tax Act, 1961 allows for a deduction of up to Rs 1.5 lakh on investments made in each financial year. The interest you earn each year is tax-free as well. Finally, the accumulated corpus is tax-free when you withdraw it at maturity, making it an entirely tax-free income.

When is PPF interest credited?

PPF interest rates are calculated monthly on the PPF balance in the investor's account but are credited only at the end of the financial year on March 31st, according to PPF regulations.

Will the PPF interest rate increase in the future?

The government adjusts the PPF interest rate on a quarterly basis. The interest rate is currently at 7.1 percent. For the first quarter of 2022, the PPF interest rate stays constant.

Is the PPF interest rate fixed?

PPFs (Public Provident Funds) are government-backed savings accounts that you may establish at banks or the Post Office and earn a predetermined interest rate. The government changes the interest rates on PPF accounts every three months. The RBI has chosen to keep the rate at 7.1 percent unaltered for the next three months.

Where to show PPF interest in ITR?

It is mandatory that you report interest from your savings account, PPF, and MIS in your ITR. Interest from post office savings accounts and MIS should be reported on 'Schedule OS,' whilst interest from PPF (which is excluded) should be recorded on 'other exempt income' on Schedule EI of the applicable ITR form.

Who decides PPF interest rate?

The central administration sets the PPF interest rate each quarter. The current interest rate for PPF accounts has been set at 7.1 percent for 2022-23.