The SBI PPF (Public Provident Fund) Account is a government-backed long- term investment scheme managed by the State Bank of India (SBI). This scheme helps you save for retirement with a fixed SBI PPF interest rate. The PPF Account in SBI matures in 15 years, providing security and tax benefits under Section 80C.
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A SBI PPF Account refers to a Public Provident Fund (PPF) account offered by the State Bank of India (SBI). PPF is a long-term investment plan backed by the Government of India, designed to provide you with retirement plan.
The current PPF interest rate in SBI is 7.1% p.a. which is quarterly reviewed by the Government of India.
Contributions made to this tax-saving investment are eligible for tax deductions under Section 80C of the Income Tax Act, and the interest earned is tax-free.
NOTE: There is no maximum age limit to open a PPF account with SBI.
| Feature | Details |
| SBI PPF Interest Rate | 7.1%* per annum (compounded yearly). |
| Min. Amount to Open SBI PPF Account | ₹500 |
| Maximum Balance Limit | ₹1,50,000 per financial year. |
| Maturity Period | - 15 financial years (excluding the year of account opening). - Extend account in 5-year blocks (within 1 year of maturity). |
| Deposit Periodicity | Lump-sum or installments in multiples of ₹50. |
| Account Opening | Cash or cheque (date of realization in Govt. account is the date of opening/subsequent deposit). |
| Tax Benefits | -Deposits qualify for deduction under section 80C of the Income Tax Act. -Interest earned is tax-free under the Income Tax Act. |
| Interest Calculation | - Quarterly SBI interest rate in SBI is notified by the Ministry of Finance. - Interest calculated monthly on the lowest balance between the 5th day and month's end. |
| Interest Crediting | The SBI PPF interest rate is credited at the end of each financial year. |
| Loan Availability | - Available after one year from the end of FY of initial subscription. - Up to 25% of balance after the second year preceding loan application. - One loan per financial year. - Second loan after first loan repayment. |
| SBI PPF Withdrawal Rules | One withdrawal per financial year, up to 50% of balance at maturity in each block of 5 years. |
| Discontinued SBI PPF Account | Cannot be extended. |
* From 01.01.2024
The SBI PPF interest rate is subject to change based on quarterly revisions by the Ministry of Finance. Currently, it typically aligns with the rates set for small savings schemes, which is 7.1% p.a. for Q1 of FY 2024-25.
A PPF Calculator helps you estimate returns on your Public Provident Fund investment. It considers factors like your annual contribution and the prevailing interest rate. This tool provides a quick way to plan and manage your PPF investments efficiently.
Resident: You must be a resident of India to open an SBI PPF account in your own name.
Minors: Parents or guardians can open a PPF account on behalf of a minor. Only one such minor account is allowed per child.
Ineligible: The following individuals/ entities are not eligible to open a SBI PPF Account-
Hindu Undivided Family (HUF)
Non-Resident Indians (NRIs)
The steps to open a PPF account in SBI online are as follows:
You need SBI Internet banking credentials.
Log in and go to 'Request & Enquiries' > 'New PPF account’.
Enter applicant’s details; for minors, provide minor’s info and guardian details.
Enter branch code/IFSC code.
Enter nomination details; no joint holding, minors only have a guardian nominee.
Click 'Submit'; note the generated reference number valid for 30 days.
Within 30 days, visit a branch with KYC docs, printed application, and photo.
Mentioned below are some prerequisites to open SBI PPF account online:
You can only open an online PPF account if you already have a savings account with SBI.
You must have net banking or mobile banking facility activated on your SBI account.
Your Aadhaar number needs to be linked to your savings account.
The mobile number linked to your Aadhaar should be active to receive one-time passwords (OTPs).
Maturity Period: 15 years from the end of the financial year in which the account is opened.
Complete Withdrawal: You can withdraw the entire balance (accumulated contributions and interest) after maturity.
Minimum Account Age: Allowed after completion of 5 financial years from account opening (beginning of 6th year).
Withdrawal Frequency: One withdrawal per financial year.
Withdrawal Amount: Limited to the lower of:
50% of the balance at the end of the 4th preceding financial year.
50% of the balance at the end of the immediately preceding financial year.
The withdrawn amount is tax-free.
Outstanding loan amount on the PPF account reduces the available withdrawal amount.
After maturity, you can extend the account in blocks of 5 years (with contributions) or close it.
Related Read: National Pension Scheme (NPS)
The following documents are required to open a PPF account in SBI:
Duly filled and signed PPF account opening form (Form - 1) / printout of the online form.
Passport-size photograph.
Self-attested copies of ID proof (PAN card, Aadhaar card, Driving License, Voter ID etc.).
Address Proof (Passport, Aadhaar Card, Electricity Bill etc.).
SBI PPF accounts offer a number of benefits, including:
Interest Rate: SBI PPF accounts offer 8.50% annual interest (as of July 2, 2024), one of India's highest for savings.
Tax Benefits: Deposits up to Rs 1.5 lakh per year qualify for Section 80C deductions. Interest earned is tax-free.
Investment Tenure: Initial 15 years, extendable in 5-year blocks.
Deposits: Minimum Rs. 500 annually, maximum Rs. 1,50,000. Can be made lump sum or up to 12 installments/year.
Loan: Loans available against account balance after a specified period.
Withdrawal: Partial withdrawals are allowed after a specific period under defined conditions.
Security: Backed by the government of India.
Nomination: Allows nomination of beneficiaries.
The SBI PPF Account offers a secure and tax-efficient savings avenue for long-term financial goals. With the attractive PPF interest rates and the benefit of tax exemption, it remains a reliable choice for individuals seeking stable growth and retirement planning.
People also calculate: NPS Pension Calculator
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*All savings are provided by the insurer as per the IRDAI approved insurance
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^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
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¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.
++Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.
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