Urban Money

SBI PPF (Public Provident Fund) Calculator

The Public Provident Fund is the most popular savings tool among Indian citizens. This tool can also be referred to as the savings-cum-tax savings tool, as the tax benefits make your eyes pop out. If you are investing in PPF, you probably want to know how much your money will increase in value over the course of the investment.

The SBI PPF Calculator can assist you in calculating the annual PPF returns you can obtain by making contributions to your SBI PPF account at a set frequency and during a predetermined time frame. The minimum investment term is set at 15 years, and the investment amount can vary from INR 500 to INR 1.50 lakh in a fiscal year. The current SBI PPF interest rate is 7.1% for Quarter 1 of the financial year 2022–23. The government establishes this rate, along with maturity, taxation, and withdrawal requirements.

What is the Public Provident Fund (PPF)?

Public Provident Fund (PPF), launched in 1968, is managed by the National Savings Organization. This popular savings scheme is a healthy snack for all the small-savers. A person investing their savings in the PPF can witness their savings grow exponentially over a few years. The Public Provident Fund offers tax-free savings as it falls under the Exempt-Exempt-Exempt (EEE) category.

This scheme is one of the finest investing options for those with a limited tolerance for risk. Since PPF is a government-sponsored programme, the investment is unrelated to the market. As a result, it provides guaranteed returns to meet many people's needs for safe investments. PPF accounts are used to diversify an investor's portfolio because their returns are fixed.

What is SBI PPF Calculator?

The SBI PPF calculator is an online tool that estimates the amount of interest that will be received and the maturity value for an investment of a certain amount over a certain term. By estimating the total corpus developed after the investment period, you can determine whether the investment option you chose was in line with your financial objectives.

Steps to use Urban Money’s online SBI PPF calculator 2022 are:

  • Enter the invested amount.
  • Enter the investment time period.
  • Upon filling out the above details, the State Bank PPF calculator will provide you with the pool amount at the end of the investment period.

The SBI provident fund calculator can be better understood with the help of the following example:

A person wants to calculate the maturity amount for their 15-year, INR 25,000 annual investment. Using the SBI PPF calculator 2022, they can immediately obtain an estimate. The estimated maturity sum is INR 7,33,107, while the estimated growth in wealth is INR 3,58,107.

How Does the SBI PPF Calculator Help You?

According to PPF regulations, the PPF account calculator SBI allows investors to invest as little as INR 500 and as much as INR 1,50,000 each year and still be eligible for tax benefits.

The investment can be made in two ways: monthly or all at once. With the help of the PPF account calculator SBI, you can calculate your expected returns based on your invested amount and the lock-in term you choose accordingly.

The following is how the PPF interest calculator SBI helps you:

  • It allows you to assess numerous instances while changing the investment amount.
  • It displays the total amount invested over the specified duration.
  • It displays the whole interest earned following maturity.
  • It shows the total amount you will be paid when the account reaches maturity.

Key Benefits of SBI PPF Calculator

The SBI Bank PPF calculator has the following benefits:

  • Resolves queries in association with PPF.
  • Your capital growth is monitored.
  • Informs of a change in the interest rate. 
  • The user receives a straight return on their investment. 
  • An estimation of the total investment value is generated.

SBI Public Provident Fund Calculator Formula

The PPF interest rate calculator, SBI, uses the following formula:

F = P [({(1+ i) ^ n} – 1) / i]

In the PPF interest rate calculator, SBI, the terms mentioned above, refers to the following:

  • F = PPF maturity value
  • P = Annual installment
  • i  = Interest rate
  • n = Number of years 

SBI PPF Investment Schedule 

The PPF schedule for investing INR 1,50,000 every year for 15 years is shown below. It includes the initial balance, the amount deposited, the interest earned, and the final balance (assuming the interest rate is 7.9%). The following has been calculated using the SBI PPF interest rate calculator:

Year Opening Balance (in INR) Amount deposited (in INR) Interest earned (in INR) Closing balance (in INR)
0 0 1,50,000 11,850 1,61,850
1 1,61,850 1,50,000 24,636 3,36,486
2 3,36,486 1,50,000 38,432 5,24,919
3 5,24,919 1,50,000 53,319 7,28,327
4 7,28,327 1,50,000 69,381 9,47,618
5 9,47,618 1,50,000 86,711 11,84,329
6 11,84,329 1,50,000 1,05,412 14,39,741
7 14,39,741 1,50,000 1,25,590 17,15,331
8 17,15,331 1,50,000 1,47,361 20,12,692
9 20,12,692 1,50,000 1,70,852 23,33,545
10 23,33,545 1,50,000 1,96,200 26,79,745
11 26,79,745 1,50,000 2,23,549 30,53,295
12 30,53,295 1,50,000 2,53,060 34,56,355
13 34,56,355 1,50,000 2,84,902 38,91,257
14 38,91,257 1,50,000 3,19,259 43,60,516

Modes of Depositing Amount in SBI PPF

The SBI PPF account allows the minimum and maximum amounts that can be placed into one each year to be INR 500 and INR 1.5 lakh, respectively. A penalty of INR 50 per year will be assessed together with the arrears of subscription of INR 500 each year if a PPF Account Holder does not deposit INR 500 into his account.

Each deposition must be made through the mentioned modes in SBI PPF account: 

  • Cash
  • Crossed check
  • Demand draught
  • Pay order
  • Online transfer
  • Any other form of payment in the office's location in favour of the accounts officer.

What are the alternatives to PPF?

An investor must evaluate the PPF scheme's possibilities and select the one that best meets their investment objectives. The investment objectives may be either long-term, such as 15 years, or short-term, such as 5 years, for an established lock-in time and anticipated returns.

A few more investment choices exist, such as tax-saving bank FDs, recurring deposits, ULIPs, NSCs, NPSs, and senior citizens' savings plans.

Below is a list of all investment options other than the SBI Bank PPF calculator:

  • Equity Linked Savings Scheme (ELSS)
  • National Savings Certificate (NSC)
  • Unit Linked Insurance Plan (ULIP)
  • National Pension Scheme (NPS)
  • Tax Savings Bank FD
  • Recurring Deposits
  • Senior Citizens Savings Scheme

The following table compares the above-mentioned schemes:

Scheme  Lock-in Period Interest Rate Tax Implication
ELSS 3 years 12% annually (historical). Subject to market movements. Principal amount- 80C deduction Interest- 10% LTCG Dividend- 10% DDT
NSC 5 years 6.8 % p.a. (Compounded Annually) Deduction on a deposit up to INR 1.5 lakh Interest-Taxable at income tax slab rates subject to an annuity.
ULIP 5 years Subject to ULIP fund performance in the market. Principal amount- 80C deduction Interest-Tax-free
NPS 3 years 12%–14%, depending on the type of scheme. Principal amount- 80C deduction Interest-Tax-free
Tax Saving Bank FD 5 years Average FD rates are 6.7%. FD rates differ from bank to bank. Principal amount- 80C deduction Interest- Taxable
Recurring Deposits 6 months to 10 years Average deposit rates are 7%. Deposit rates differ from bank to bank. Interest earned is taxable at the applicable income tax slabs.
SCSS 5 years Low 7.40%

Steps to open a PPF Account at the State Bank of India

SBI provides online and offline options for opening a PPF account. The SBI Bank PPF calculator is accessible just as well as the process of opening an account.

The Online Process

It is straightforward to open an SBI PPF account online using internet banking or mobile banking, and the process is fairly easy. SBI claims to be the first bank to provide an instant account option for a PPF account. The following steps must be followed to open an SBI PPF account:

  • Visit SBI Bank’s official website.
  • Log in to your SBI account using your username and password.
  • Visit the request tab and click on the 'Request and Enquiries’ tab in the top right corner.
  • Select the 'New PPF Account’ option from the drop-down menu present under this tab.
  • Fill in the required details like name, address, Permanent Account Number (PAN) and Customer Information File (CIF) number.
  • The next step is to provide the information on the account from which the funds will be contributed towards the PPF. The information required would be the account number, PAN number, and verified branch code.
  • The form can be submitted once filled out. You will receive a reference number linked to your application along with a link to download and print the form.
  • A time frame of 30 days will be allowed to pay a visit to the SBI branch to sign the printed account opening application. You must carry self-attested copies of the documents required for KYC, like identity proof, address proof, and a passport-size photograph.
  • Once the documentation is completed, you need to submit an initial deposit of at least INR 500. This will be considered the first deposit made in your SBI PPF account.

The Offline Process

The following steps must be followed to get your SBI PPF account going:

  • The first step is to visit an SBI branch that allows you to open a PPF account.
  • SBI requests you to fill out Form A, which is assigned to opening a PPF account with SBI. The form is available on SBI’s official website and can be printed there.
  • The documents must be self-attested before being attached to the form for KYC verification. The documents required are identity proof and address proof.
  • At the time of opening the account, cash or a cheque must be deposited to make the initial deposit. The amount should be a minimum of INR 500.

SBI PPF Interest Rates

The SBI PPF interest rate is 7.1% yearly, and the PPF account balance is compounded as of FY 2022–23 Q1 (April–June). The Ministry of Finance determines the interest rate that applies to the Public Provident Fund and is subject to change quarterly. The SPI PPF interest rate calculator can be used to calculate PPF returns based on various interest rates. The most recent quarter-by-quarter historical SBI PPF interest rates are as follows:

Period Interest Rate on PPF
April-June 2022 7.1%
January-March 2022 7.1%
October -December 2021 7.1%
July-September 2021 7.1%
April-June 2021 7.1%
January -March 2021 7.1%
October -December 2020 7.1%
July-September 2020 7.1%
April-June 2020 7.1%
January-March 2020 7.9%

Frequently Asked Questions (FAQs)

How to check SBI PPF balance online?

You can check your SBI balance online by logging into your SBI account or through the SBI YONO app.

Does the PPF account provide tax benefits?

Yes, the PPF account offers tax benefits. It is a tax savings scheme allowing a deduction of INR 1.5 lakhs under Section 80C of the Income Tax Act. 

Can I avail of loans against SBI PPF?

Yes, you can avail loans against the SBI PPF. The loan can be availed from the account’s 3rd to the 6th year.

How much will I get in PPF after 15 years?

After 15 years, your initial investment will be multiplied over 15 years and the added interest rate.

Can I close my SBI PPF account before PPF maturity?

Yes, you can close your SBI PPF account 5 years prior to opening the account and maturity.

Is it mandatory to invest in a PPF account every year?

Yes, making a minimum investment in a PPF account is mandatory every year.