Public Provident Fund PPF Interest Rate 2020 and 52 Yrs History

What is the Public Provident Fund PPF Interest Rate 2020? How often currently it is changing now? What is the historical interest rate of the 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 products 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 52 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.

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

Post Office Interest Rate changing Time Table

Below is the interest rate movement of Public Provident Fund from 2016-17 to 2019-20.

PPF Interest Rate from FY 2016-17 to FY 2019-20

You noticed that it started from 8.1% and hovering around 8%. The lowest was 7.6% for 3 quarters.

Public Provident Fund PPF interest rate 2020

Let me now share with you Public Provident Fund PPF Interest Rate 2020. I will show you the interest rate from 1st January 2020 to 31st December 2020. This is one full year. However, for PPF, the year means the financial year (i.e 1st April 2020 to 31st March 2021).

Below is the interest rate movement of Public Provident Fund interest rate from 1st Jan 2020 to 31st December 2020.

Public Provident Fund PPF Interest Rate 2020

I will update this section as and when I get the interest rate information of the remaining months of 2020.

Who can use the Public Provident Fund?

PPF or Public Provident Fund is a 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.

14 Responses

  1. Dear Basu Sir,
    I have a PPF account in Post Office from last 10 years. Of late, because of their TORTURE MENTALITY i want to shift the post office PPF account to my bank (Central Bank of India). Is it possible Sir? If YES, what is the procedure sir? Also i want to know, changes in the interest rates, if any will happen if I shift like this in the middle of the tenure?
    Kindly advise how to do it sir. You know, how tortourous these post office employees are. fed up of them.

    Regards and thanks in advance Sir

  2. I had opened my wife’s PPF account in the financial year 2020-2021 and deposited 1.5 lacs(maximum allowed limit) in July. The amount deposited in the PPF account was for the financial year 2019-2020 as government has extended deadline for PPF subscribers to make deposits till 31st July in their accounts for FY 2019-20. Now as i want to invest further in the PPF account for the financial year 2020-2021….My Bank (ICICI Bank) is not allowing me to deposit money in the PPF account as i have reached the maximum allowed limit according to them…..Since government of India has already notified that we can invest for the financial year 2019-2020 and 2020-2021 in PPF account or any other saving scheme in the current financial year……My cousin is also facing the same problem….Despite Government notification why banks are not allowing to deposit money in PPF account?

  3. Sir,have a query.suppose I invest 1.5 lac lumpsump in starting of a financial year,then will the ppf interest be same for the whole FY or will it flactuate the whole year according to fluctuation inducted by govt?

  4. Hi Basu,

    Great article on PPF. Can you also share PPF deposit limit history from 1968. It would be of great help if along with it you can also share the table of PPF returns if a person have invested maximum amount permitted in PPF from 1968 and what would be his returns till 2020?

  5. I had opened a PPF account in my minor son’s name and i have been contributing to this account from my funds. Now the account has matured (already 20 years) and my son is also Major now.
    I would like to close this account now.
    1. Will the proceeds go to my Son’s bank account. The correction in ppf account (with his name has not been done so far).
    2. How can my son transfer back to me? What will be the tax implications
    3. Total amount is appx.30Lakhs.

  6. The Reserve Bank has appointed the Financial Benchmark India Pvt Ltd (FBIL) for valuation of portfolios of government securities, which earlier used to be done by FIMMDA.

    In the last bi-monthly monetary policy review of 2017-18, RBI had proposed that FBIL would be tasked for valuation of government securities.

    As per RBI directive, FIMMDA has ceased to publish prices/yield of government securities from March 31, 2018.

    Read more at:

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