PPF Interest Rate History: PPF Historical Interest Rates

In this article, we will try to understand how the rate of interest changed over the years in Public Provident Fund (PPF) scheme since its inception in 1952. Historical Interest Rates of PPF account will help us understand the importance and popularity of the scheme during the observation period.

PPF Interest Rate History

In the following table we have discussed the rate of interest payable in PPF accounts as fixed from time to time since the introduction of the scheme.

Year Rate of interest (p.a.)
 1968-69  4.8%
 1969-70  4.8%
 1970-71  5%
 1971-72  5%
 1972-73  5%
 1973-74  5.3%
 From 1.4.1974 to 31.7.1974  5.8%
 From 1.8.1974 to 31.3.1975  7%
 1975-76  7%
 1976-77  7%
 1977-78  7.5%
 1978-79  7.5%
 1979-80  7.5%
 1980-81  8%
 1981-82  8.5%
 1982-83  8.5%
 1983-84  9%
 1984-85  9.5%
 1985-86  10%
 From 1.4.1986 to 31.3.1999  12%
 From 1.4.1999 to 14.1.2000  12%
 From 15.1.2000 to 28.2.2001  11%
 From 1.3.2001 to 28.2.2002  9.5%
 From 1.3.2002 to 28.2.2003  9%
 From 1.3.2003 to 30.11.2011  8%
 From 1.12.2011 to 31.3.2012  8.6%
 From 1.4.2012 to 31.3.2013  8.8%
 From 1.4.2013 to 31.03.2016  8.7%
 From 1.4.2016 onward  8.1%

Note from now onward it will be reviewed quarterly by Government of India.

What is Public Provident Fund? Introduction of PPF

The Public Provident Fund (PPF) is a statutory, long term, savings-cum-tax-saving scheme of Government of India under the provisions of the Public Provident Fund Act, 1968.

The National Savings Organization (NSO) introduced the Public Provident Fund (PPF) scheme in 1968 to mobilize small savings from the workers of unorganized sector and self employed individuals with a vision to provide them retirement security.

Though the scheme was originally for the workers of unorganized sector & self employed individuals, the salaried class, business class and other investors have shown their interest. The deposits made in PPF Account are eligible for tax deduction Under 80C of Income Tax Act, your maturity (principal & interest) is exempt from income tax as well, and it is a perfectly safe instrument which cannot be attached in case of debt or liability. The money invested in PPF will be yours forever.

Any resident Indian Individuals and individuals on behalf of minors with minimum initial deposit of Rupee Five Hundred can open Public Provident Fund account. Previously, Hindu Undivided Family (HUF) were allowed to open PPF account but now law prohibits HUF from opening such accounts.

If you want a safe corpus, a decent rate of return, total tax benefits and have a long term investment plan, then the PPF is for you. Today the PPF has become Indias one of the most popular risk free, hassle