SBI PPF Scheme 2025 : Public Provident Fund (PPF) is one of the most popular long-term savings schemes in India, offering secure investment options with tax benefits. Among the banks providing this facility, State Bank of India (SBI) is one of the most trusted and widely used. The SBI PPF Scheme 2025 continues to attract investors due to its 7.1% interest rate, tax-free returns, and long-term wealth-building potential.
In this article, we will cover everything you need to know about SBI PPF 2025, including eligibility, interest rate, investment limits, tax benefits, and how to open an account.
What is SBI PPF Scheme 2025?
The SBI PPF (Public Provident Fund) Scheme 2025 is a government-backed, long-term investment plan designed to encourage individuals to save money for retirement and future financial needs. Under this scheme, investors can deposit a minimum of ₹500 and a maximum of ₹1.5 lakh per year. The deposits earn a fixed interest rate of 7.1% per annum, which is compounded annually.
One of the major attractions of the SBI PPF Scheme is that all returns are completely tax-free under Section 10(11) of the Income Tax Act, 1961. This means both the interest earned and the maturity amount are exempt from tax.
Key Features of SBI PPF 2025
| Feature | Details |
|---|---|
| Minimum Deposit | ₹500 per year |
| Maximum Deposit | ₹1.5 lakh per year |
| Interest Rate | 7.1% per annum (compounded annually) |
| Tenure | 15 years (extendable in blocks of 5 years) |
| Tax Benefits | Contributions qualify for deduction under Section 80C |
| Premature Withdrawal | Partial withdrawal allowed from 7th year |
| Loan Facility | Available from 3rd to 6th year |
| Account Mode | Online and offline (SBI branches & internet banking) |
Eligibility Criteria
Anyone who meets the following criteria can open an SBI PPF account:
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Resident Indian Individuals – including salaried employees, self-employed professionals, and students.
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Minors – Parents or guardians can open a PPF account in the name of a minor child.
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Existing PPF Holders – You can continue your existing SBI PPF account and make fresh contributions.
Note: NRIs are not eligible to open a PPF account.
Interest Rate and Compounding
The interest rate of SBI PPF 2025 is 7.1% per annum, which is revised quarterly by the Government of India.
The interest is calculated on the lowest balance between the 5th and last day of the month and is credited at the end of each financial year (March 31). For example, if you deposit ₹1 lakh in April, the interest is calculated on that amount until the next deposit or withdrawal is made.
The compounding of interest annually ensures that your investment grows significantly over time, making it a highly attractive option for long-term wealth creation.
How to Open SBI PPF Account 2025
Opening an SBI PPF account is simple and can be done both online and offline:
Offline Method (SBI Branch)
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Visit your nearest SBI branch.
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Fill out the SBI PPF account opening form.
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Submit identity and address proof (Aadhaar, PAN, passport, etc.).
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Make the initial deposit of ₹500 or more.
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Collect the PPF passbook for record-keeping.
Online Method (SBI Internet Banking)
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Log in to SBI Internet Banking.
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Go to “Accounts” > “PPF Account” > “Open PPF Account”.
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Fill in the required details and upload KYC documents.
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Make the initial deposit online.
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The account is activated immediately, and you can track your balance online.
Deposit Rules and Payment Options
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Minimum annual deposit: ₹500
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Maximum annual deposit: ₹1.5 lakh
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Deposits can be made in lump sum or in installments (maximum 12 per year).
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Payment modes include cash, cheque, demand draft, NEFT, or online transfer.
Loan and Withdrawal Facility
Loan Against PPF
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Loans are available from the 3rd to 6th year of the account.
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The maximum loan amount is up to 25% of the balance at the end of the 2nd year preceding the loan.
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Interest is charged at a rate of 1% above the prevailing PPF interest rate.
Partial Withdrawal
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Allowed from the 7th year onwards.
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Maximum withdrawal is 50% of the balance at the end of the 4th year preceding the withdrawal year.
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Premature closure is allowed after 5 years in cases of serious illness or higher education.
Maturity and Extension
The SBI PPF account matures after 15 years. On maturity, you have two options:
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Withdraw the entire balance along with interest.
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Extend the account in blocks of 5 years with or without contributions.
Extending the account allows you to continue earning tax-free interest while maintaining the long-term savings benefits.
Tax Benefits
SBI PPF offers triple tax benefits:
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Contribution deduction under Section 80C – Up to ₹1.5 lakh per year.
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Tax-free interest – Interest earned is completely exempt from income tax.
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Tax-free maturity – The total maturity amount is exempt from tax.
This makes it one of the most effective tax-saving and long-term investment options in India.
Why Choose SBI PPF 2025?
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Safe & Secure – Being a government-backed scheme, the principal and interest are fully secure.
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High Returns – 7.1% interest compounded annually is attractive for long-term savings.
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Tax-Free Growth – All returns are tax-free, unlike other investment options.
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Flexible Deposits – Invest as low as ₹500 or as high as ₹1.5 lakh annually.
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Loan Facility & Withdrawals – Access your funds in emergencies without closing the account.
Conclusion
The SBI PPF Scheme 2025 is an excellent choice for individuals seeking a safe, long-term investment with tax-free returns. With a 7.1% interest rate, government backing, flexible deposits, and additional benefits like loans and partial withdrawals, it caters to both beginners and experienced investors.
Whether you are saving for retirement, your child’s education, or future financial security, the SBI PPF offers consistent growth, tax benefits, and peace of mind. Opening an account online or offline is easy, making it accessible to everyone looking to maximize wealth with minimal risk.