# PPF Interest Rates 2017-18 | PPF Calculator, History & Updates

A Public Provident Fund (PPF) account is a safe, long-term investment that offers lots of tax benefits. This article is about PPF Interest rates of 2017-18 & PPF Calculation. The interest earned is tax-free, and deposits made towards the PPF account can be claimed as tax deductions. Also, the maturity amount is exempt from tax. Hence it’s considered a great investment option.

## PPF interest rate for 2017-18?

The current PPF interest rate for the first quarter of the 2017-2018 financial year (April-June) is 7.9%. This is a 0.1% decrease from the previous interest rate of 8.0% for the last quarter of 2016-2017.

## PPF Interest Calculation FAQs

• The interest on PPF accounts is compounded annually. It is also not taxed. This coupled with the fact that it’s a long term investment of 15 years or more leads to a build up of a large corpus of saving.
• The minimum deposit amount for each year is Rs.500, and the maximum deposit amount for each year is Rs.1,50,000.
• While planning for retirement, you can decide how much total amount you will need, and then save accordingly.
• You can make partial withdrawals from the 7th year on wards. However, they are subject to certain conditions.
• You can take loans against the balance in your PPF account from the 3rd to the 6th year.

The following table shows how PPF interest is calculated, and the final maturity amount. It also helps to determine the amount of withdrawals and loans allowed.

## Understanding PPF Interest Rate

• The rate of interest on PPF accounts is revised by the central government every quarter.
• The interest on deposits in PPF accounts is compounded annually.
• Interest rates on PPF accounts are the same for all banks and post offices.

## PPF Interest Rate History

The PPF interest rates of the last few years:

 Year PPF Interest Rate 2017 – 2018 (Q1) 7.9% 2016 – 2017 (Q3 and Q4) 8.0% 2016 – 2017 (Q1 and Q2) 8.1% 2015 – 2016 8.7% 2014 – 2015 8.7% 2013 – 2014 8.7% 2012 – 2013 8.8%

## PPF Interest Rate Calculation on 1.5 lacs investment per year

When we invest 1.5 lacs then maturity is 4437132 (44.4 Lakhs) and below is the steps-

Year Opening Balance Amount Deposited Interest Earned Closing Balance Loan (Max.) Withdrawal (Max.)
1 0 150000 12150 162150 0 0
2 162150 150000 25284 337434 0 0
3 337434 150000 39482 526916 40538 0
4 526916 150000 54830 731746 84359 0
5 731746 150000 71421 953167 131729 0
6 953167 150000 89357 1192524 182937 0
7 1192524 150000 108744 1451268 0 263458
8 1451268 150000 129703 1730971 0 365873
9 1730971 150000 152359 2033330 0 476584
10 2033330 150000 176850 2360180 0 596262
11 2360180 150000 203325 2713505 0 725634
12 2713505 150000 231944 3095449 0 865486
13 3095449 150000 262881 3508330 0 1016665
14 3508330 150000 296325 3954655 0 1180090
15 3954655 150000 332477 4437132 0 1356753

## Current PPF Interest Rate

PPF interest rate 2017-2018 for different banks are same.

 SBI Bank PPF Interest Rate 7.9% HDFC Bank PPF Interest Rate 7.9% ICICI Bank PPF Interest Rate 7.9% Axis Bank PPF Interest Rate 7.9%

## SBI and other banks in which we can open a PPF account?

You can open a PPF account in post offices, or in any of the following banks:

Public Sector Banks:

1. State Bank of India
2. State Bank of Travancore
3. Dena Bank
5. State Bank of Bikaner and Jaipur
7. State Bank of Patiala
8. Bank of Baroda
9. Canara Bank
10. Bank of India
11. Bank of Maharashtra
12. State Bank of Mysore
13. Central Bank of India
14. Corporation Bank
15. IDBI Bank
16. Indian Overseas Bank
17. Oriental Bank of Commerce
18. Punjab National Bank
19. Union Bank of India
20. United Bank of India
21. Andhra Bank
22. Vijaya Bank
23. Punjab and Sind Bank
24. UCO Bank

Private Sector Banks:

1. ICICI Bank
2. Axis Bank
3. HDFC Bank

Keep in mind that not all branches of these banks can open PPF accounts. To find out the list of bank branches where you can open a PPF account visit the nearest branch of the particular bank. You can also get the details from the bank’s website, or by calling its Customer Care number.

Author Website

### 3 Responses

1. Ishwar Choraghe

Earlier Govt has given good interest rate on PF. But BJP Govt have reduced the rate of interest on PF lovely and it is a loss of crorer peoples who are doing job in Public / Pvt / Govt. sector.

Who will give attention to this important issue ?