SBI PPF is a government-regulated personal financial scheme, which is maintained by SBI branches, offers safety with attractive interest rates and returns that are fully exempted from Tax. Investors can get facilities such as loans, withdrawal, and extension of accounts.
The current SBI PPF interest rate for the quarter of October 2020 – December 2020 is 7.1%. The Ministry of Finance, GoI sets out the PPF rate of interest which is paid off on 31st March every year.
The PPF interest is calculated every month but is credited to the investor’s account at the end of the year. The SBI PPF rate of interest is calculated every month on the lowest balance at the credit of the account balance between the close of the fifth day and the last day of every month.
Good to Know: The investor should deposit a fixed amount every month before the 5th to fetch the interest for the entire month. By doing this, the investor can gain maximum return on the same.
Information SBI PPF Rate of Interest:
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What is an SBI PPF Account?
State Bank of India (SBI) PPF is a Government of India-backed long term small savings scheme which provides tax benefits to investors under Section 80C of the Income Tax Act 1961.
State Bank of India Public Provident Fund (PPF) scheme is an investment option, in which one can invest a little amount from Rs. 500 to a maximum of Rs. 1,50,000 in one financial year. PPF account in SBI has 15 years locking period, however, anyone can partially withdraw from the seventh year and onward.
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Features of Public Provident Fund (PPF) account in SBI:
The key silent features of the SBI Public Provident Fund (PPF) account is as follows:
- The present rate of interest on the subscriptions made to the fund is 7.1 % per annum from 01 April 2020.
- The minimum deposit amount is 500/- per annum and the maximum deposit amount is Rs. 1,50,000/- per annum, either in a one-time payment or in a recurring deposit.
- The SBI PPF scheme is for the Original duration is 15 years. Thereafter, on application by the subscriber, it can be extended for 1 or more blocks of 5 years each.
- Investment amount up to Rs 1,50,000/- per annum qualifies for Income Tax Rebate under section 80C of IT Act.
- Deposits to PPF account can be made in a lump sum or in 12 installments.
- One deposit with a minimum amount of Rs 500/- is mandatory in each financial year in a PPF scheme.
- Withdrawal from the SBI PPF account is permissible from the 6th financial year.
- The loan facility is also available in the SBI PPF account from the 3rd financial year up to the 5th financial year. The rate of interest charged on a loan taken by the subscriber from a PPF account on or after 01.12.2011 shall be 2% PA. However, the rate of interest of 1% PA shall continue to be charged on the loans already taken from the SBI PPF account before 30.11.2011.
Eligibility Criteria to Open a PPF Account in SBI:
- Any Individual who is a resident of India is eligible to open an account under the Public Provident Fund (PPF) in SBI. A PPF account in SBI may be opened under the name of a minor candidate by his/her legal guardian. Each person is eligible for only one PPF account under his/her name.
- Any individual who either a working employee or is a pensioner or self-employed or belongs to any other category can open a PPF account in a State Bank of India.
How to check SBI PPF account balance?
SBI PPF account balance can be checked both online and offline. PPF account balance can be checked online only for those investors whose PPF accounts are held with the SBI and having internet banking credentials.
For checking the balance offline, you need to visit the bank branch and get the PPF passbook updated. The passbook contains, date-wise, details of the investments made, interest credited, and the balance in your account.
SBI PPF Interest Rate:
The SBI PPF account interest is paid on the amount in the investor’s account. The SBI PPF rate of interest is reviewed by the Ministry of Finance, GoI every quarter and over the past several years the return has been witnessing a downtrend.
The current rate of interest on the subscriptions made to the SBI PPF is 7.1 % per annum during the quarter of October to December 2020. The interest rate applicable to the Public Provident Fund is decided by the Ministry of Finance and is liable to change every quarter.
Historical SBI PPF Rate of Interest:
The following are the quarter-wise historic PPF interest rates for FY 2004-05 to FY 2019-20:
| Financial Year | Time Period | PPF Interest Rate (per annum) |
| 2020-2021 | October 2020 – December 2020 | 7.1% |
| 2020-2021 | July 2020 – September 2020 | 7.1% |
| 2020-2021 | April 2020 – June 2020 | 7.1% |
| 2019-2020 | January 2020 – March 2020 | 7.9% |
| 2019-2020 | October 2019 – December 2019 | 7.9% |
| 2019-2020 | July 2019 – September 2019 | 7.9% |
| 2019-2020 | April 2019 – June 2019 | 8.0% |
| 2018-2019 | January 2019 – March 2019 | 8.0% |
| 2018-2019 | October 2018 – December 2018 | 8.0% |
| 2018-2019 | July 2018 – September 2018 | 8.0% |
| 2018-2019 | April 2018 – June 2018 | 7.6% |
| 2017-2018 | January 2018 – March 2018 | 7.6% |
| 2017-2018 | October 2017 – December 2017 | 7.8% |
| 2017-2018 | July 2017 – September 2017 | 7.8% |
| 2017-2018 | April 2017 – June 2017 | 7.9% |
| 2015-2016 | April 2015 – March 2016 | 8.70% |
| 2014-2015 | April 2014 – March 2015 | 8.70% |
| 2013-2014 | April 2013 – March 2014 | 8.70% |
| 2012-2013 | April 2012 – March 2013 | 8.80% |
| 2011-2012 | April 2011 – November 2011 | 8.0% |
| 2011-2012 | December 2011 – March 2012 | 8.60% |
| 2010-2011 | April 2010 – March 2011 | 8.0% |
| 2009-2010 | April 2009 – March 2010 | 8.0% |
| 2008-2009 | April 2008 – March 2009 | 8.0% |
| 2007-2008 | April 2007 – March 2008 | 8.0% |
| 2006-2007 | April 2006 – March 2007 | 8.0% |
| 2005-2006 | April 2005 – March 2006 | 8.0% |
| 2004-2005 | April 2004 – March 2005 | 8.0% |
How is the SBI PPF rate of interest calculated?
As per the Public Provident Fund (PPF) scheme rules, SBI PPF interest rate calculation is on a monthly basis on the PPF balance in the investor’s account but is credited only at the end of the financial year on March 31st.
Good to Know: The investor should deposit a fixed amount every month before the 5th to fetch the interest for the entire month. By doing this, the investor can gain maximum return on the same.
You may Calculate the SBI PPF Interest rate by using: SBI PPF Calculator
OR
You may Calculate the Post Office PPF Interest rate by using: Post Office PPF Calculator
OR
You may Calculate the ICICI Bank PPF Interest rate by using: ICICI PPF Calculator
What is the current SBI PPF Interest Rate?
The current rate of interest on the subscriptions made to the SBI PPF is 7.1 % per annum during the quarter of October to December 2020. The interest rate applicable to the Public Provident Fund is decided by the Ministry of Finance and is liable to change every quarter.
FAQs about SBI PPF rate of interest:
Is interest on PPF taxable?
PPF scheme falls under the EEE (Exempt, Exempt, Exempt) tax category. This means a contribution made towards PPF is allowed as a tax deduction under section 80C of the Income Tax Act and the interest earned thereon is exempt under section 10(11) of the Act.
Why is PPF interest not credited yet?
There is no PPF interest rate calculation date. The interest in your PPF account is calculated every month but is credited at the end of the financial year i.e. 31st March of every financial year. You must check your PPF account balance after this day.
Should I invest monthly or yearly in PPF?
This investment can be made monthly or lump sum. Investing in a PPF scheme monthly or lump sum depends on the liquidity of funds an investor has.
What is the best time to invest in PPF?
The PPF interest is calculated on the lowest balance in the PPF account between the 5th day and the end of the month.
