One of the preferred retirement savings funds by the working class is the Public Provident Fund (PPF). The long-term investment horizon and the magic of compounding may be the key reasons for its popularity along with the income tax exemption available on it.
Public Provident Fund (PPF) schemes are one of the most popular long-term investment methods in India. This scheme is backed by the Government of India and hence provides substantial returns along with tax benefits.
State Bank of India also offers the opportunity to open a PPF account easily. An SBI PPF Account can be opened across all the branches of the bank across the nation.
Public Provident Fund
Public Provident Fund (PPF) is a popular long-term investment option scheme. It is backed by the Government of India and also offers attractive interest rates and returns with safety. These returns are fully exempt from Tax under Section 80C of the Income Tax Act.
Investors can save tax from up to a maximum Rs.1,50,000 in one financial year. Customers can get facilities, such as loans, partial withdrawal, and extension of account. PPF is a good alternative for self-employed people or for those who are from unorganized sectors since EPF/GPF is not available for them.
Key Features of SBI Public Provident Fund Account
Some of the features and benefits of opening a Public Provident Fund Scheme with SBI are mentioned here:
- The minimum annual investment required to open an SBI PPF account active starts from Rs. 500
- The maximum investment allowed in the SBI PPF account is Rs. 1.5 lakhs annually
- The current SBI PPF Interest Rate is 7.1%
- PPF Deposits can be made in a lump sum amount or through a maximum of 12 instalments annually
- SBI PPF scheme account deposits can be opened either via the online mode (mobile/internet banking) as well as through the offline mode(cheque/cash)
- A depositor having a PPF Account is allowed to provide the details of a family member as nominee for PPF account at the time of opening the account. The nominee details can be updated at any time in the future
Eligibility To Open PPF Account In SBI
- An Indian citizen can open a PPF account.
- Parents can open a PPF account on behalf of minors.
- Hindu Undivided Family (HUF) and Non-Resident Indians (NRI) cannot open a PPF account.
- An individual can open only one PPF account unless the second account is in the name of a minor.
Opening PPF Account In SBI
Usually, a PPF account can be easily opened in a designated post office or a bank branch. If you are an SBI customer, you may want to open a PPF account with SBI so you can manage all accounts with one bank.
SBI has announced the launch of a digital service that enables customers to open a Public Provident Fund (PPF) account instantly in a completely online and paperless manner at any time, i.e. 24/7.
Open a PPF account conveniently anytime, anywhere, using the bank’s digital channels, Internet and Mobile Banking. As per SBI’s claim, it is one of the first banks in India to offer instant Public Provident Fund (PPF) account facility.
FAQs
SBI PPF Interest Rate?
The PPF account interest rate is uniform across post office and all banks that offer this scheme. Thus, the interest rate of SBI PPF account for 2025 is 7.1% p.a.
Prerequisites To Open PPF Account Online With SBI
- You should hold a savings bank account with SBI.
- You should have Net Banking/Mobile Banking access
- Your Aadhaar number should be linked to your account
- Your mobile number which is linked to your Aadhaar should be active to receive one time password (OTP). This is necessary to e-sign/e-authorise the opening of a PPF account instantly.