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SBI PPF Calculator

The Public Provident Fund (PPF) scheme is a long-term investment option introduced by the National Savings Organization in 1968. The scheme offers decent returns on the amount invested coupled with income tax benefits. Individuals can open a PPF account in their own name and on behalf of minors at any of the SBI branch offices. As per the rules laid out, a PPF account cannot be opened in the name of Hindu Undivided Family. The minimum contribution towards a PPF account is Rs. 500, while the maximum is Rs.1,50,000 per annum. The deposit can be made in a lump sum or in a maximum of 12 instalments per year. A lock-in period of 15 years is applicable for PPF deposits. However, one is permitted to withdraw up to half of the balance after completion of 5 years from the end of the year when the initial subscription was made.

About State Bank Of India (SBI)

Headquartered in Mumbai, the State Bank of India (SBI) Group is the largest financial services conglomerate in India. It offers an array of products and services to individuals, large corporations, commercial enterprises, public bodies and institutional clients through its branches, joint ventures, subsidiaries and associate companies.

SBI - a Fortune 500 company - is the country’s largest commercial bank with regards to deposits, assets, branches, number of clients and employees. It entered into the league of top 50 global banks, with a balance sheet size of more than Rs. 30 lakh crores, over 24,000 branch offices and 59,000 plus ATMs. SBI caters to over 42 crore users, following the merger of its five associate banks and the Bharatiya Mahila Bank in April 2017. SBI has established its presence in 195 foreign offices across 36 nations.

Source: SBI official website

State Bank of India (SBI) PPF Interest Rate

Interest rate on a PPF scheme is determined by the central government on a quarterly basis. According to various news sources, the rate of interest on PPF deposits for the July to September 2019 quarter is 7.9%. The government has cut the interest rate by 0.1% for the new quarter. Yields of government bonds are factored in while determining the interest rate applicable on a PPF scheme. The interest is paid out on 31st March every year, and is calculated on the minimum balance between the fifth day and end of the month.

Benefits of State Bank Of India (SBI) PPF

PPF is among the most popular savings-cum-investment products in the country. They are suitable for risk-averse investors, seeking long-term capital appreciation. Some of the benefits of choosing the PPF route for wealth creation are as follows:

  • Guaranteed and risk-free returns: Given that PPF is backed by the Government of India, it is entirely risk-free. In addition to this, the returns are guaranteed by the government. Therefore, those choosing the PPF route of investment can be assured of complete capital protection.
  • Tax Benefits: PPF falls under the Exempt-Exempt-Exempt category. All deposits made in the PPF are tax deductible under Section 80C of the Income Tax Act, 1961. The maximum deduction that can be claimed under this section is Rs. 1,50,000. Additionally, the accumulated amount and interest are exempt from tax during the time of withdrawal.
  • Loan against PPF: A PPF account holder can take a loan against his or her PPF scheme from the start of the third up to end of fifth financial year of having opened the account. The loan amount is limited to a maximum of 25% of the balance available at the close of two years immediately preceding the year when the loan is being applied for.
  • Partial liquidity: One is allowed to withdraw up to 50% of the balance in the PPF account following completion of five years from the end of the year when the account was opened. The money withdrawn is tax-free in the hands of the receiver. One partial withdrawal is permitted every fiscal.
  • Flexibility in deposit: PPF account-holders can enjoy a lot of flexibility when it comes to the investment amount. Every year, an individual can invest a minimum of Rs. 500, while the maximum can go to Rs. 1,50,000. Also, the investor can make a maximum of 12 deposits in a year or in a lump sum.

How to calculate State Bank Of India (SBI) PPF Maturity Amount?

The SBI PPF calculator is an effective tool in determining the maturity amount on a PPF account. On the basis of the input provided in the SBI PPF calculator, a user will be able to determine the maturity amount. The details that a user needs to input in the SBI PPF calculator include tenure, deposit frequency, interest rate and investment amount. According to the Public Provident Fund scheme rules, the date of maturity calculation shall be taken from the end of the financial year when the deposit was made. E.g. X makes his first contribution towards PPF on October 4, 2015. The lock-in period will be calculated from the March 31, 2016, and the year of maturity, here, will be April 1, 2031.

FAQs on SBI PPF Calculator

What is the current interest rate of PPF in SBI?

The rate of interest on PPF deposits for the quarter of July to September 2019 is 7.9%.

Can I open SBI PPF account online?

Through the online portal of SBI, individuals have the convenience of viewing their PPF account balance and transferring funds from linked savings account. Users can also view their PPF account statement through their SBI Net Banking Account.

Is loan facility available on Public Provident Fund investment?

Yes. Individuals can make use of the loan facility from the third financial year up to the end of fifth financial year.

Will an individual be able to maintain more than one Public Provident Fund account under his or her name?

An individual can only maintain one PPF account, except in the case of an account opened on behalf of a minor.

When will a Public Provident Fund (PPF) account mature?

A PPF account has a lock-in period of 15 years and will mature after the completion of this period. Partial withdrawals, however, can be made after the completion of five years from the end of the year when the account was opened.

What are the documents that SBI will require to open a PPF account?

The following documents have to be submitted with the SBI in order to open a PPF account:

  • PPF account opening form (Form A)
  • Nomination Form
  • Identity proof and Residence proof
  • Passport size photograph
  • Copy of PAN card/ form 60-61

Is it possible to extend the tenure of a PPF investment beyond the maturity period?

Yes. An individual has the option of extending the tenure of a PPF investment for a block period of 5 years beyond the maturity period. This can be done through the submission of Form H within a year from the date of maturity.

What is the process of transferring existing PPF account maintained with another bank/post office to SBI?

Subscribers are allowed to transfer their PPF account from one authorized bank or Post office to another. To transfer an existing PPF accounts to SBI, the below process needs to be followed.

  1. The customer should approach the bank or the post office where the current PPF account is held and make an application, requesting to transfer PPF account to SBI's branch.
  2. The bank/post office, after the application is processed, shall send the original documents, like the account’s certified copy, account opening application, nomination form, specimen signature etc. to the bank’s (SBI) branch address (provided by the customer). Attached to this will be a cheque or DD for the outstanding balance in the PPF account.

Who is eligible to invest in a PPF scheme?

Following is the eligibility criteria to open a PPF scheme:

  • Resident Indian individuals and individuals on behalf of minors can open a PPF account.
  • An individual can maintain only one PPF account, except in the case that an account is opened on behalf of a minor.
  • A PPF account can be opened by the mother or father on behalf of their minor child. It must, however, be noted that the mother and father cannot both open PPF accounts on behalf of the same minor.
  • Grandparents are not permitted to open a PPF account on behalf of minor grandchild. If, in case, both the parents pass away, then the grandparents, as guardians of the grandchild, can open a PPF account.

How to apply for the PPF scheme through SBI?

In order to apply for a PPF scheme, an individual will have to fill up Form A and hand it over at any of the bank’s branches, with the relevant documents. It is important to mention, on Form A, the name of branch where the applicant would like the PPF account to be opened.

Is PPF a good investment option?

PPF investment is best-suited for investors who are seeking risk-free and stable returns. In addition to this, one can claim a tax deduction under Section 80C of the Income Tax Act, 1961, up to Rs. 1,50,0000. The accumulated amount and interest are exempt from tax at the time of withdrawal as well.