Public Provident Fund (PPF) account interest rate for October-December 2025

Public Provident Fund account interest for the October-December 2025 quarter of FY 2025-26 was announced by the Finance Ministry on September 30, 2025. There was no change in the rate.

Who is eligible to invest in a PPF account?

The PPF account can be opened by the following:

• a single adult by a resident Indian.
• a guardian on behalf of a minor/person of unsound mind. ​

However, only one account can be opened across the country, either in the Post Office or any Bank.

The PPF account allows investors to deposit up to ₹1.5 lakh per person per year. Investments in a PPF account mature after 15 years.

Amid falling bank deposit rates, the public provident fund is a safe and long-term fixed-income investment option. The PPF account offers both guaranteed returns and tax benefits.

PPF interest rate: How is it decided

Ahead of the announcement of the revised interest rate, PPF account holders were expecting a rate hike as there has been no change in the PPF interest rate since April 1, 2020.

Before April 1, 2020, PPF offered 7.9% interest between July 1, 2019, to March 31, 2020, and 8% interest between October 1, 2018 to June 30, 2019.

The PPF interest rates are decided as per the recommendations of the Shyamala Gopinath Committee.

The rate is linked to the average secondary market yield on 10-year government securities (G-Secs) from the previous quarter, plus a spread of 25 basis points.

The average yield on 10-year G-Secs was between 6.32% and 6.54% during the July-September quarter. If we apply the formula, then the new PPF rate works out to be 6.57% and 6.79%, which is significantly lower than the current rate of 7.1%.

However, the Government doesn't strictly follow the recommendations. In the past also, the Finance Ministry has kept small savings rates unchanged even when market conditions suggested a cut.