The Public Provident Fund (PPF) is one of the most popular long-term savings schemes in India in its unique features, such as tax benefits and guaranteed returns. Securing a safe and convenient way for investors to open a PPF account is through the State Bank of India (SBI). As per decision taken in April 2025, the government kept the PPF interest rates unchanged, thereby giving a sense of stability and confidence to investors. Let us understand the latest updates of this scheme and the details of its benefits.
PPF Interest Rate
Interest rate for PPF for the quarter April-June 2025 has been fixed at 7.1% per annum, which is stable for the last five quarters for the benefit of investors. This interest rate is compounded annually so as to give maximum returns on long-term savings. The intention of the government in making this decision is to provide a stable economic atmosphere for the confidence of investors.
Key Benefits Of The PPF
Several benefits for investors are available through the PPF scheme. It has a fixed term of 15 years, which may be extended in blocks of 5 years. Investors may invest a minimum of ₹500 and a maximum of ₹1.5 lakh per year. The scheme gives tax benefits, with the deposit into PPF being considered for tax deduction under Section 80C of the Income Tax Act. The interest earned on the PPF amount and the maturity proceeds are also tax-free.
SBI PPF Account Opening Process
Opening a PPF account via SBI is very easy. Investors can do it through online or offline modes. For online opening of the account, the investor must have a linked Aadhaar with an SBI savings account, and he will use the internet banking facility. In offline mode, investors will visit the nearest SBI branch with the required documents.
Future Prospects
The PPF interest rates are reviewed every quarter in order that the returns may be given to investors according to the market conditions. However, the current stable rates will certainly attract investors to save for the long term.
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