SBI PPF (Public Provident Fund) Account – Interest Rate, Eligibility, How to Open

Updated: 09-10-2024 06:52:45 AM

Public Provident Fund Scheme has been a popular tool for creating a retirement corpus for decades. The key reasons why millions of Indians have opted for this scheme are the risk-free nature of the deposit and its tax-free returns. Among the numerous public and private sector banks that provide the PPF facility, the SBI Public Provident Fund account is currently one of the most popular choices.

SBI PPF Interest Rates 2024

The PPF account interest rate is uniform across all banks and post offices operating the scheme. The SBI PPF account interest rate is subject to change every quarter as per announcements made by the Ministry of Finance. For Q3 of (October-December) FY 2024-25, the PPF interest rate has been fixed at 7.1% per annum.

Features of SBI Public Provident Fund Account

Some of the key features and benefits of the Public Provident Fund Scheme are mentioned here:

• Minimum annual investment required to keep an SBI PPF account active is Rs. 500
• Maximum investment allowed in the SBI PPF account is Rs. 1.5 lakh annually
• PPF deposits can be made in a lump sum as well as in installments
• SBI PPF account deposits can be made both online (mobile/internet banking) as well as offline (cheque/cash)
• If you open a PPF account, you are allowed to provide details of up to 4 family members as nominees for a PPF account at the time of opening the account. The nominee details can be updated at any time in the future.

Eligibility to Open PFF Account in SBI

Opening of PPF account is easy but there are certain conditions for eligibility. The eligibility criteria for opening a PPF account is as follows:

• An individual who is an Indian resident can open a PPF account in his/her name. There is no maximum age limit for opening a PPF Account in SBI
• Hindu Undivided Family cannot open a PPF account
• Non-resident Indians (NRIs) cannot open a PPF Account
• PPF account can be opened in the name of the minor by a parent/guardian. Only one such minor account is allowed per child

Documents Required

The following is a list of documents that you require for opening an SBI PPF account:

• Duly filled PPF Account opening form (Form – 1)/Signed Printout of Form – 1 filled online
• Passport Size Photographs
• Self-attested copies of identity proof – PAN card, Aadhaar card,Driving License, Voter ID, etc.
• Address Proof – Passport, Aadhaar Card, Electricity Bill, etc.

How to Open a PPF Account in SBI Online

SBI currently allows you to partially complete the PPF account opening process online. The online SBI PPF account opening system is at present available only to existing savings/current account holders. The following are key steps in the SBI PPF account opening process:

Step 1: Log in to your SBI net banking or mobile banking account using the respective banking credentials

Step 2: Navigate to the “New PPF Account” link located under the “Requests & Enquiries” menu

Step 3: On the next screen, you will see a PPF form that needs to be filled

Step 4: After filling out the online PPF form, you will be provided with a reference number and a link to download and print the online filled out form

Step 5: Now, you need to sign the applicable pages and visit your chosen SBI PPF account branch with self-attested copies of applicable KYC documents (PAN, Aadhaar, etc.) and passport size photographs to complete the account opening process

The minimum initial account deposit amount of Rs. 500 also needs to be paid in cash/cheque at the time of account opening.

Once your PPF account with SBI is up and running, you will receive an SBI PPF account passbook with details of all credits and debits to the account and also contains key details such as PPF account number and branch code.

How to Open a PPF Account in SBI by Visiting the Bank

Follow the given steps to open your PPF account in SBI:

Step 1: Visit any SBI branch which is authorized to open PPF accounts for its account-holders

Step 2: Fill, sign, and submit the PPF account opening form- Form – 1, which is available at the branch. Also, attach the applicable KYC documents and photographs along with the form

Step 3: The minimum initial deposit amount of Rs.500 needs to be paid in cash/cheque at the time of account opening. The bank may accept cash only up to Rs. 49,999 and if you intend to deposit more, you may have to do it through cheque.

How to Access SBI PPF Account Passbook

With SBI, you can access your PPF account passbook both online as well as offline. The SBI PPF account passbook allows you to check both credits and debits made into your account.

How to Access your PPF Account Passbook Online

• To access online services or your PPF passbook online, you need to first get net-banking activated for your account
• Log-in to the SBI website using your user ID and password
• Now, choose the appropriate option to access your passbook
• You can download and print your SBI PPF account passbook

Steps to Access your PPF Account Passbook Offline

• • Go to the nearby SBI branch designated to open PPF accounts
  • Get your PPF passbook updated and check all the transactions easily

SBI PPF Account Statement Download

You can use SBI netbanking to download your SBI PPF account e-statements online. You simply have to log in to netbanking using your login credentials. Using these e-statements, you can keep a track of all the debits and credits made in your SBI PPF account.

How to Check PPF Balance in SBI

SBI allows you to check your PPF account balance as well as all account debits/credits through various online and offline routes. The following are some key pointers regarding checking your SBI PPF balance:

• In order to check your SBI Public Provident Fund account balance online, you need to first link your SBI savings/current account with your SBI PPF account and get internet/mobile banking activated
• You can then log into your banking account online using net banking or mobile banking credentials to check your PPF account balance online
• To check your PPF account balance offline, all you need to do is get your SBI PPF account passbook updated. It will contain all applicable credits/debits of your account till date

SBI PPF Calculator

You can use the SBI PPF calculator to:

• Compute the maturity value of your PPF investment
• Find out the interest associated with your PPF account
• Know the performance of the account with respect to Principal and Interest earned

Note: Interest is computed and paid only up to a maximum contribution limit of Rs.1.5 lakh in a year. Amounts exceeding the maximum limit are not taken into account while calculating the interest. Moreover, the excess amount is not eligible for any tax benefits.

Read more: PPF Calculator

SBI PPF Account Transfer Procedure

SBI allows you to transfer your PPF account from one SBI branch to another as well as to/from other banks and post offices. The following are key pointers of the SBI PPF account transfer procedure:

• You first need to approach your current SBI PPF account branch and submit an application for the transfer of your PPF account
• Your application needs to contain key details such as current PPF account number/branch as well as details of the bank/post office to which you want to transfer your account
• You will also need to attach the passbook of your current PPF account to your application
• Once the PPF account transfer is sanctioned, your current bank/post office will forward your documents to the new bank branch/post office you are transferring your account to
• Subsequently, you need to visit the new bank branch/post office with original KYC documents to get details verified and get your new PPF account activated with the new branch/bank/post office
• Once your new account is up and running, you will receive a new passbook from the bank/post office which contains key details of your account as well as credits/debits and account balance

Mode of Deposit in SBI PPF Account

The deposits can be made in SBI Public Provident Fund Account either through the online (internet/mobile banking) route or the offline route (cash/cheque deposit). The following are key details of the available modes –

• In online mode, the payment can be done with the help of internet banking subsequent to linking your SBI savings/current account with your PPF account
• Online transfers to PPF accounts can also be made using ECS, NEFT, and standing instruction
• Offline PPF deposits can be made by cash, cheque, or draft

Loan Against SBI PPF Account

As an SBI PPF account holder, you can opt for a loan against PPF account subject to certain key terms and conditions as mentioned below:

• Loan against SBI PPF account can be availed using PPF Form – 2 from third year but not after sixth year, counted from the date of account opening
• The maximum PPF loan available under this scheme equals 25% of PPF account balance recorded at the end of the second year
• The loan interest rate is 1% over the applicable PPF rate i.e. for PPF rate of 7.1%, loan against PPF rate will be 8.1%
• PPF loan can be availed more than once subject to SBI regulations and complete payment of prior loan against PPF

SBI PPF Withdrawal Process

The following are some key features of the PPF account balance withdrawal process for SBI:

• SBI allows you to make withdrawals from your PPF balance every year after expiry of 5 years from the end of the year in which the initial subscription was made
• To make a withdrawal from your SBI Public Provident Fund account, you need to fill out and submit the PPF Form-2 available online and at the designated SBI PPF branches
• The maximum amount you can withdraw is limited to the lower among – 50% of SBI PPF account balance at the end of 4th year that immediately precedes the year of withdrawal or the PPF account balance at the end of the previous year

Read More on PPF Withdrawal

SBI Public Provident Fund Extension

SBI allows its PPF account holders to extend their account tenure subsequent to maturity after the completion of 15 years from the date of account opening. The following are some key facts to consider regarding the extension of the SBI PPF account:

● SBI PPF account tenure can be extended multiple times in blocks of 5 years after the maturity of the account

● PPF extension application using PPF Form – 4 needs to be submitted to the bank within 1 year of account maturity

● SBI does not allow PPF extension in case of maturity of NRI-held PPF account

● You have the option of not making any additional contributions to your matured PPF account during the extension period

● Your SBI PPF account will continue to earn interest at the applicable rate during the extension period

Key Points to Keep in Mind while Investing in SBI PPF

The following are some key points to remember when investing in SBI PPF:

• It is important to have a nominee to your SBI Public Provident Fund account. You can change/add nominees at a later date too.
• Currently, the facility of making online payments into PPF accounts is restricted to accounts held with a bank
• New PPF account cannot be opened by an NRI, but in case a resident becomes NRI prior to maturity of the account, such an SBI PPF account can be held till maturity without the option of extension

SBI Customer Care

In case of any queries, issues or complaints you can call on the following SBI customer care toll-free numbers:

18001234/18002100/1800112211/18004253800 (Only for customer calling from India)

Read More: SBI Customer Care

Frequently Asked Questions

Q. How can I close a PPF account in SBI?
Ans. To close the PPF account in SBI, you need to submit a written application at the branch where your account is held. If you are applying for premature closure of the PPF account, mention the appropriate reason for the same in the application. Along with that, you need to submit a copy of your PPF passbook and other documents to support your application.

Q. Can I have a PPF account in SBI without having a savings account with the bank?
Ans. Yes, you can open a PPF account in SBI even if you don’t have an SBI savings account. However, in that case, you won’t be able to make subsequent contributions online. You will have to make contributions in the form of cash or cheques of other banks, and deposit the same in the SBI branch where your PPF account is held.

Q. How do I withdraw money from an SBI PPF account?
Ans. To withdraw money from your SBI PPF account, you need to fill and submit Form – 3 at the SBI branch where your account is held. However, it should be noted that there are certain withdrawal rules associated with a PPF account. For instance, you cannot withdraw the full amount before the 15 years maturity period. Also, premature withdrawals can be made once a year after the completion of 6 financial years of contribution.

Q. How can I transfer my SBI PPF account to another bank?
Ans. To transfer your PPF account from SBI to another bank, you will be required to apply for the same. Your application should specify the key details such as the current PPF account number/branch as well as details of the bank/post office to which you want to transfer your account. Also, a copy of your PPF passbook should be attached along with the application.

Q. What happens if I don’t credit an SBI PPF account for one financial year?
Ans. If you fail to make minimum contributions in a financial year to your PPF account, your account will become inoperative. You will be able to activate your account only after making a minimum contribution along with the penalty.

SBI PPF Interest Rates Historical

Time Period	Interest Rate (per annum)
Q2 FY 2024-25	7.1%
Q1 FY 2024-25	7.1%
Q4 FY 2023-24	7.1%
Q3 FY 2023-24	7.1%
Q2 FY 2023-24	7.1%
Q1 FY 2023-24	7.1%
Q4 FY 2022-23	7.1%
Q3 FY 2022-23	7.1%
Q2 FY 2022-23	7.1%
Q1 FY 2022-23	7.1%
Q4 FY 2021-22	7.1%
Q3 FY 2021-22	7.1%
Q2 FY 2021-22	7.1%
Q1 FY 2021-22	7.1%
Q4 FY 2020-21	7.1%
Q3 FY 2020-21	7.1%
Q2 FY 2020-21	7.1%
Q1 FY 2020-21	7.1%
Q4 FY 2019-20	7.9%
Q3 FY 2019-20	7.9%
Q2 FY 2019-20	7.9%
Q1 FY 2019-20	8%
Q4 FY 2018-19	8%
Q3 FY 2018-19	8%
Q2 FY 2018-19	7.6%
Q1 FY 2018-19	7.6%
Q4 FY 2017-18	7.6%
Q3 FY 2017-18	7.8%
Q2 FY 2017-18	7.8%
Q1 FY 2017-18	7.9%

Note: SBI PPF account balance is compounded annually

PPF Calculator – PPF Interest Rate, Loan, Maturity & withdrawal Calculator