SBI PPF Account

The Public Provident Fund or PPF scheme was launched by the National Savings Organisation in 1968 to promote savings among Indian citizens and help them save a huge amount over a long period by making small contributions. PPF scheme is offered by various banks including the State Bank of India (SBI). The current SBI PPF interest rate is 7.10% p.a. It is easy to open an SBI PPF account. The maximum duration of the scheme is 15 years. You can also add nominees to the SBI PPF scheme.

SBI PPF Account Details

Following are the key SBI PPF account details: 

Investment limitMinimum Rs. 500, subject to a maximum deposit of Rs.1,50,000 p.a.
Duration 15 years. After that, it can be extended for 1 or more blocks of 5 years each
Current rate of interest7.10% p.a.
Loans and withdrawalsPermitted depending on the age of the account and balances on the specified dates
Income tax benefits Available under Section 88 of IT Act
Nomination facilityAvailable for one or more persons
Facility to transfer PPF accountAvailable for free on request by the subscriber

SBI PPF Account Interest Rates

The SBI PPF account interest rate is determined by the Central Government of India on a quarterly basis. Currently, the SBI PPF interest rate is 7.10% p.a. with effect from 01.04.2020. The calculation of PPF interest rate is done on the minimum balance available in the account from the 5th day to the end of each month and is paid on 31st March every year.

SBI PPF Account Opening

To simplify the process to open PPF account online SBI offers an easy to use digital platform, i.e. SBI’s official website. The SBI PPF account opening process is very simple and can be done online via internet banking or mobile banking. 

The steps to open the SBI PPF scheme are mentioned below:

  • Visit the official website of SBI, i.e. www.onlinesbi.com.
  • Now log in to your account using your username and password.
  • After completing the login process, click on the ‘New PPF Account’ tab.
  • On the next page, you will see your name, address, CIF number, and PAN. 
  • Now enter your bank account from which contributions will be made, your PAN number, and details of the bank branch. You can get details of the branch by entering the branch code.
  • Next, your personal details will be verified after which you have to add nominee details and click on ‘Proceed’.
  • After completing the above step, your PPF account will be created and the PPF number will be displayed on the screen. 
  • You can view the transaction statement and the annual statement using internet banking.
  • Next, the SBI PPF account opening form must be taken, and you must submit the PPF account opening form at the SBI branch within 30 days from opening the account.

SBI PPF Account Eligibility

Individuals must follow the prerequisites mentioned below to open SBI PPF account online:

  • Individuals can open the SBI PPF online at any SBI branch in their own name as well as on behalf of a minor or a person of unsound mind.
  • Individuals must have a savings bank account with SBI.
  • Individuals’ Aadhaar number must be linked with their savings account.
  • The net banking or mobile banking facility must be enabled.
  • The mobile number linked to the PPF account must be active so that an OTP can be sent to the mobile number which will be required for the opening of an account.

Check PPF Account Balance

You can check PPF account balance through any of the following two ways:

  • Online method: SBI PPF account balance check can be done online by logging in to your SBI net banking account. By logging in, you will get access to all the details including the present balance, the interest earned, and the deposits made by you.
  • Offline method: You can visit the nearest SBI branch to check your SBI PPF account balance.

SBI PPF Account Features

  • Investment limits: You can deposit a minimum of Rs. 500, subject to a maximum of Rs. 1,50,000 per annum in your PPF account.
  • Duration: As per the PPF rules SBI, the original duration of deposit is 15 years. Thereafter, it can be extended for 1 or more blocks of 5 years each on application by the subscriber.
  • Rate of interest: The rate of interest is determined by the Central Government on a quarterly basis. At present, the interest rate is 7.10% per annum with effect from 01.04.2020.
  • Loans and withdrawals: You are permitted to take loan against PPF or make SBI PPF withdrawal online depending on the age of the account and balances as on the specified dates.
  • Income tax benefits: One of the many benefits of PPF account in SBI is that you get the income tax under Section 88 of the Income Tax Act.
  • Nomination facility: The nomination facility is available in the name of one or more persons. Subscriber also has to define the shares of nominees.
  • Account transfer: You can transfer your PPF account to/from other branches/ other banks/ other post offices on request. This service is free of any charges.
  • Online payment: You can easily make SBI PPF online payment. To transfer payments to your SBI PPF Account, log on to your SBI internet banking account and make a payment to your SBI PPF Account in the same manner as you make an online payment to any other bank account.

SBI PPF Account Rules

  • The subscriber shouldn’t deposit above Rs. 1.5 Lakhs per annum as the excess amount will neither earn any interest nor it will be eligible for any tax rebate under Income Tax Act. 
  • The subscriber can deposit the amount in lump sum or in installments.
  • The interest is calculated on the minimum balance in PPF Account between 5th day and end of the month. 
  • The interest on the PPF Account is paid on 31st March every year
  • The interest amount is totally exempt from income tax. Also, the amount outstanding to the credit is entirely exempted from Wealth Tax.
  • You can opt for premature closure of your PPF account or the account of a minor/person of unsound mind of whom you are the guardian on an application to the accounts office in Form-5, for any of the following reasons:
    • Treatment of any life threatening disease of the account holder/ spouse/ dependent children/ dependent parents, on producing supporting documents and medical reports confirming such disease from the treating medical authority.
    • Higher education of the account holder/ dependent children on producing documents and fee bills confirming the admission in a recognised institute of higher education in India/ abroad
    • On change in residential status of the account holder on producing a copy of passport and visa/ income tax return.

SBI PPF Account FAQs

Can we open an SBI PPF account online?

Yes you can open an SBI PPF account online by following the steps mentioned below:

  • Visit the official website of SBI, i.e. www.onlinesbi.com.
  • Now log in to your account using your username and password.
  • After completing the login process, click on the ‘New PPF Account’ tab.
  • On the next page, you will see your name, address, CIF number, and PAN. 
  • Now enter your bank account from which contributions will be made, your PAN number, and details of the bank branch. You can get details of the branch by entering the branch code.
  • Next, your personal details will be verified after which you have to add nominee details and click on ‘Proceed’.
  • After completing the above step, your PPF account will be created and the PPF number will be displayed on the screen. 
  • You can view the transaction statement and the annual statement using internet banking.
  • Next, the SBI PPF account opening form must be taken, and you must submit the PPF account opening form at the SBI branch within 30 days from opening the account.

What is the benefit of a PPF account in SBI?

  • You can deposit a minimum of Rs. 500, subject to a maximum of Rs. 1,50,000 per annum in your PPF account for a duration of 15 years. 
  • The duration can be extended for 1 or more blocks of 5 years each after 15 years.
  • The rate of interest is determined by the Central Government on a quarterly basis and is 7.10% per annum at present.
  • You can take a loan against PPF or make withdrawal online depending on the age of the account and balances as on the specified dates.
  • You get the income tax under Section 88 of the Income Tax Act.
  • The nomination facility is available in the name of one or more persons. Subscriber also has to define the shares of nominees.
  • You can transfer your PPF account to/from other branches/ other banks/ other post offices on request. This service is free of any charges.

What is PPF rate in SBI?

The  current PPF rate in SBI is 7.10% per annum.

Can PPF withdrawal online SBI?

Yes, you can opt for premature closure of your SBI PPF account or the account of a minor/person of unsound mind of whom you are the guardian on an application to the accounts office in Form-5, for any of the following reasons:

  • Treatment of any life threatening disease of the account holder/ spouse/ dependent children/ dependent parents, on producing supporting documents and medical reports confirming such disease from the treating medical authority.
  • Higher education of the account holder/ dependent children on producing documents and fee bills confirming the admission in a recognised institute of higher education in India/ abroad
  • On change in residential status of the account holder on producing a copy of passport and visa/ income tax return.