A Guide To SBI PPF Interest Rates

In India, the SBI Public Provident Fund (PPF) is a popular long-term investment option scheme.Through this scheme, the Government of India offers attractive interest rates and returns while also providing security. PPF returns are fully tax exempt under Section 80C of the Income Tax Act. Opening a PPF Account can also provide you with benefits such as loan, withdrawal, and account extension.

As of 1 April 2020, the SBI PPF interest rate is 7.1 percent per annum (compound annually).

An SBI Public Provident Fund Account has the following features:

The following are the key features and benefits of opening an SBI Public Provident Fund account:

Premature payment is permitted only after the account holder has completed five fiscal years and supporting documents from a competent medical authority are produced, if the amount is needed for the treatment of serious ailments or life-threatening diseases of the account holder, spouse, dependent children, or parents. Furthermore, on provision of documents and fee bills in confirmation of enrollment in a recognised institute of higher education in India or overseas, the sum can be withdrawn prematurely for the account holder's or minor account holder's higher education.

The SBI PPF account has a Rs. 500 minimum investment limit. A maximum of Rs. 1,50,000 can be deposited in a calendar year.

The investment has a 15-year time horizon. Following that, you have the option of extending the investment for one or more 5-year blocks.

You can nominate one or more persons in your SBI PPF account. Subsequently, you can also define the share of each nominee as a subscriber. 

Your SBI PPF account is transferable to other SBI branches, other banks or Post Offices, and even vice versa. As a subscriber of the scheme, you can avail of the service free of charge.

The rate of interest on SBI PPF accounts is set by the Central Government each quarter. For the quarter ending December 2021, the SBI PPF interest rate is 7.10 percent per year.

Depending on the age and balances of your account, you may be able to obtain loan and withdrawal facilities. Permissions for these facilities are valid as of the application dates.

Eligibility

• Individuals who are Indian residents can open a Public Provident Fund account In India, other people can open accounts on behalf of minors.
• Both parents are not permitted to open separate Public Provident Fund accounts for the same minor.
• Grandparents can only act as guardians for minor grandchildren who have lost both parents. They cannot, however, open a PPF account on behalf of their grandchildren.

Conclusion

The State Bank of India (SBI) has a broad reach and is present in even the most remote areas. Many people choose to open and invest in Public Provident Funds through SBI.Various institutions, including commercial lenders State Bank of India, offer Public Provident Fund or PPF accounts, a retirement planning-focused instrument (SBI). According to the SBI's website, sbi.co.in, the PPF scheme, which was introduced by the National Savings Organisation in 1968 to mobilise small savings, provides an investment avenue with decent returns as well as income tax benefits. SBI PPF accounts can be opened at any of the bank's branches across the country.

Also read - What Is PPF And What Are Its Benefits?

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Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.