January 3, 2019

Public Provident Fund Interest Rate 2019 – 51 Yrs History

What is the Public Provident Fund Interest Rate 2019? How often currently it is changing now? What is the historical interest rate of Public Provident Fund? How it affected you? Let us get answers to all these questions.

Public Provident Fund or PPF is one of the preferred product for many investors. In fact, I strongly advocate using this product as your debt part of the portfolio. It is 15 years product, with tax benefits at the time of investment and also at the time of maturity. Hence, consider this product only if your time horizon of the goal is more than 15 years.

I already wrote many articles about Public Provident Fund. Refer the same (list shared).

Public Provident Fund Interest Rate History of last 50 Years

Before jumping into the current interest rate, let us check the historical interest rate of PPF. PPF was launched in the year of 1968-69. Let us find out the historical returns of PPF or Public Provident Fund of last 50 years.

Public Provident Fund or PPF Interest Rate History from 1968-69 to 2015-16
  • From 1968-69 to 1969-70 it was 4.8%.
  • From 1970-71 to 1972-73 it was 5%.
  • Then it slowly raised and reached the peak of 12% during 1st April 1986-86 to 14th Jan 2000.
  • Later on, it slowly reduced and settled at 8.7% during 2015-16.

If you are finding it difficult to see the above image, then you can refer the below table for the same.

Public Provident Fund or PPF Interest Rate History

Public Provident Fund Interest Rate History from 2016-17 onwards

Earlier the interest rates used to be announced on yearly once. However, now from 2016-17, the rate of interest will be fixed on a quarterly basis. I already wrote a detailed post on this. I am providing the links to those earlier posts below.

Based on these new changes, now onward interest rate will be declared on a quarterly basis. The earlier quarters (FY 2016-17 and FY 2017-18) interest rate can be viewed in my earlier posts “Interest of PPF KVP NSC SCSS and Sukanya Samriddhi for April-June 2016“, “PPF and Sukanya Samriddhi Scheme interest rate July-Sept 2016“, “PPF, Sukanya Samriddhi, NSC, KVP Interest Rates Oct-Dec 2016”, “PPF, Sukanya Samriddhi, NSC, KVP Interest Rates Jan-Mar 2017“, “PPF, Sukanya Samriddhi, NSC, KVP Interest Rates April-June 2017“, “PPF, Sukanya Samriddhi, NSC, KVP Interest Rates July-Sept 2017“, “PPF, Sukanya Samriddhi, NSC, KVP Interest Rates Oct-Dec 2017?., “Latest Post Office Small Saving Schemes Interest rates Jan-March 2018“, “Latest Post Office Small Saving Schemes Interest rates Apr-June 2018“ and “Latest Post Office Small Saving Schemes Interest rates July-Sept 2018“.

Below is the timetable for change in interest rates for all Post Office Savings Schemes.

Post Office Interest Rate changing Time TableBelow is the interest rate movement of Public Provident Fund from 2016-17, 2018-19 and 2019-20.

Public Provident Fund Interest Rate from 2016-17, 2018-19 and 2019-20

I marked each quarter in a different colour so that you can easily identify the interest movement for each quarter of the year.

Public Provident Fund Interest Rate 2019

Let me now share with you Public Provident Fund Interest Rate 2019. I will show you the interest rate from 1st January 2019 to 31st December 2019. This is one full year. However, for PPF, the year means the financial year (i.e 1st April 2018 to 31st March 2019).

Below is the interest rate movement of Public Provident Fund interest rate from 1st Jan 2019 to September 2019.

Public Provident Fund Interest Rate 2019-July to Sept

Who can use the Public Provident Fund?

PPF or Public Provident Fund is the wonderful debt product. Because it offers the EEE (Exempt-Exempt-Exempt) feature to the investors.

The money you invest is eligible for tax deduction under Sec.80C (Up to Rs.1,50,000 currently).

The interest income earned every year is tax-free

The maturity amount is also completely tax-free.

But it does not mean that one must invest in this product because of safety and tax-free returns. As I already pointed above, you have to consider this as your debt portfolio. Also, the time horizon of the goal must be more than 15 years to align with maturity.

Otherwise, investing just for the sake of safety or tax benefits will never going to help you.

16 Comments

  1. Hi Basavaraj,

    Thanks for the detailed article.

    One query please,
    Is it mandatory to invest same amount across all the financial years or can we invest in various figures from 500 rupees till 1.5 lakhs in various financial years?

    Could you please suggest.

    Reply
    • Dear Karthik,
      There is no such mandatory rule. You can invest any amount between Rs.500 to Rs.1,50,000 a year.

      Reply
      • Achha post hai sir

        Thanks

        Reply
  2. I want to ask that I deposit 150000 in my ppf and 80000 in minor ppf whom I am guardian. What should I do now. Whether to continue it as bank is telling you can deposit 1.5 lac in both accounts means total 3 lacs

    Reply
    • Dear Chirag,
      In your case, the combined limit of both PPF should not be more than Rs.1,50,000.

      Reply
  3. Hi Basavaraj,

    In starting year of PPF I have only invested 50000 and did not use full limit of 1.5lakh…in second and third years onwards I invested 1.5lakh .so the first year deficit of 1lakh can I invest again in third year (in third year I already invested 1.5lakh)and will I earn interest on it… Since compounding happens 1.5lakh per year that remaining deficit can I invest in another year

    Reply
  4. Hi Basu, very good article as ever.
    My PPF account is going to mature next Jan ( I have already extended to 5 years once – so completed 20 years). The account has a good amount in it. Is it possible to extend it once more as I don’t need that money now? Or is it wise to close it and open an new PPF account? Please advise. Thank you.

    Reply
    • Dear Tej,
      You can extend as long as you wish for without closing it.

      Reply
  5. Dear Basavaraj,

    It is really interesting to know the history of such financial instrument. I have PPF account since last 4 years but not familiar that its interest rate was 12% in the past.

    Nice information. Keep it up….

    Reply
  6. Thanks, Basav. What is the source of the data?

    Reply
  7. I have a PPF account with SBI in a Kokata branch. I am in Hyderabad. Do you if it is possible to transfer account from Kolkata to Hyderabad online or through post?

    Reply

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