The Public Provident Fund is a favoured investment as it offers tax benefits like Section 80 C tax deduction, tax-free interest that is re-invested and the redemption is also tax-free. But over the years, since 2011 to be precise, the interest rates have been pegged to government securities. A look at the PPF interest rates over the past years show declining interest rates, although on occasion the rates have marginally gone up. At 7.1 percent current, the PPF, still, offers among the best interest rates in small savings investment basket. Typically, the interest rates of PPF is linked to government security yields.