SBI PPF Interest Rate 2026: 7.1% for July–September
SBI pays 7.1% a year on PPF for July–September 2026, the government-set rate for all banks and post offices; Oct–Dec rate due around 30 Sep.
Written by Aarav Sharma
Updated on 17 September 2026·5 min read
On this page8 sections
The PPF interest rate at SBI is 7.1% a year for July to September 2026, compounded annually. The Government of India sets the rate each quarter, so it is the same at SBI, every other bank and the post office; the rate for October to December 2026 is due around 30 September.
Key facts
| Item | SBI PPF account, 17 September 2026 |
|---|---|
| Interest rate | 7.1% a year (1 July to 30 September 2026); unchanged since 1 April 2020 |
| Next rate announcement | For October–December 2026, due around 30 September 2026 |
| How interest is worked out | On the lowest balance between the 5th and the last day of each month, credited on 31 March |
| Deposit limits | Minimum ₹500, maximum ₹1,50,000 a financial year |
| Lock-in period | 15 years from the end of the financial year of opening; extendable in 5-year blocks |
| Who can open | Resident individuals, for themselves or for a minor; one account per person |
| Online opening | YONO SBI app, for existing SBI customers aged 18 or more |
| Tax | Deposits deductible under the old regime; interest and maturity tax-free |
SBI PPF interest rate in 2026 and earlier years
PPF rates come from the Ministry of Finance’s quarterly review of small savings schemes. The Department of Economic Affairs’ memo of 30 June 2026 kept all rates for July–September 2026 unchanged from April–June. SBI’s PPF page states the rate as 7.10% a year with effect from 1 April 2020.
| Period | PPF rate |
|---|---|
| July–September 2026 | 7.1% |
| April–June 2026 | 7.1% |
| All four quarters of 2020-21 to 2025-26 | 7.1% |
| July 2019 – March 2020 | 7.9% |
| April–June 2019 | 8.0% |
| October 2018 – March 2019 | 8.0% |
| January–September 2018 | 7.6% |
So the PPF rate in 2021 was 7.1%, as it has been in every quarter since April 2020. Rates of all schemes are listed on our small savings rates page.
How much an SBI PPF account earns
The figures below assume 7.1% for the full 15 years and a deposit made by 5 April each year. The rate can change every quarter, so treat these as estimates.
| Yearly deposit | Total deposited in 15 years | Estimated maturity value |
|---|---|---|
| ₹12,000 | ₹1,80,000 | ₹3,25,457 |
| ₹60,000 | ₹9,00,000 | ₹16,27,284 |
| ₹1,00,000 | ₹15,00,000 | ₹27,12,139 |
| ₹1,50,000 | ₹22,50,000 | ₹40,68,209 |
If you pay monthly instead, a deposit of ₹12,500 before the 5th of every month grows to about ₹39,44,599 in 15 years. The total is lower than a single April deposit because each instalment earns interest for fewer months. Try your own numbers on the PPF calculator; SBI also has a PPF maturity calculator on its website.
How to open a PPF account in SBI
You can open the account at any SBI branch with Form-1, or online through YONO if you already bank with SBI.
- Log in to the YONO SBI app and go to “My Investments”.
- Tap “Open PPF account”. Your name and address fill in from bank records.
- Choose your home branch, or pick another branch by location or branch code.
- Add up to four nominees.
- Set a standing instruction for regular deposits if you want one.
- Review the details, accept the terms and confirm with the OTP sent to your registered mobile.
- The PPF account number is generated at once, and you can fund it immediately.
YONO opening is for resident Indians aged 18 or above who are KYC-compliant, have Aadhaar and PAN, and do not already hold a PPF account. Joint accounts are not allowed. At a branch, SBI asks for Form-1, a nomination form, a photograph, PAN or Form 60, and Aadhaar.
SBI PPF lock-in period, loans and withdrawals
| Item | Details |
|---|---|
| Maturity | 15 years from the end of the financial year of opening. An account opened in 2026-27 matures on 31 March 2042. |
| Extension | in blocks of 5 years, with or without deposits. Apply within one year of maturity. |
| Loan | from one year after the end of the year of opening, until the end of the fifth year, up to 25% of the balance at the end of the second preceding year. Interest is 1% a year if you repay within 36 months, and 6% a year after that. |
| Partial withdrawal | once a year after 5 years from the end of the year of opening, up to 50% of the lower of two balances: the one at the end of the fourth preceding year or the one at the end of the preceding year. |
| Premature closure | after 5 years, only for life-threatening illness, higher education or a change in residency status, using Form-5. Interest is cut by 1% from the date of opening, or from the start of the current block for an extended account. |
| Missed deposits | an account without the ₹500 minimum is discontinued. You can revive it with a ₹50 fee plus ₹500 for each missed year. |
More on rules and tax is in our PPF account guide.
Tax on SBI PPF
From 1 April 2026, the Income-tax Act, 2025 applies. PPF deposits qualify for the deduction under Section 123 (the old Section 80C), which is available only if you choose the old tax regime. Interest and the maturity amount stay exempt. Returns for 2025-26 are still filed under the Income-tax Act, 1961, where the deduction is Section 80C and the exemption Section 10(11).
Frequently asked questions
What is the SBI PPF interest rate for 2026?
7.1% a year for April–June and July–September 2026. The rate for October–December 2026 is due around 30 September.
Is the PPF interest rate different in SBI and other banks?
No. The government sets one PPF rate, so SBI, other authorised banks and the post office all pay 7.1% at present.
What is the SBI PPF lock-in period?
15 years from the end of the financial year in which you opened the account. Partial withdrawals are allowed after 5 years, and premature closure only on specific grounds.
How much will I get if I invest ₹1.5 lakh a year in SBI PPF?
About ₹40.68 lakh after 15 years if the rate stays at 7.1% and you deposit by 5 April each year. You would have put in ₹22.5 lakh.
Can I open an SBI PPF account online?
Yes, through the YONO SBI app, if you are an existing SBI customer aged 18 or above with Aadhaar and PAN.
What was the PPF rate of interest in 2021?
7.1% a year throughout 2021. The rate has not changed since April 2020.
Sources
- Interest rates on small savings schemes, July–September 2026 — Department of Economic Affairs (checked 17 Sep 2026)
- Interest rates of small savings schemes — National Savings Institute (checked 17 Sep 2026)
- Public Provident Fund Scheme, 2019 — National Savings Institute (checked 17 Sep 2026)
- PPF — State Bank of India (checked 17 Sep 2026)
- PPF account opening through YONO — State Bank of India (checked 17 Sep 2026)
- FAQ: Public Provident Fund — State Bank of India (checked 17 Sep 2026)
- PPF interest/maturity calculator — State Bank of India (checked 17 Sep 2026)
- Objective and scope of the Income-tax Act, 2025 — Income Tax Department (checked 17 Sep 2026)
- Income-tax Act, 2025 section mapping — ICAI (checked 17 Sep 2026)
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