SBI PPF Account

The PPF scheme from SBI offers decent returns on the money saved and also an interest-free return amount. Since, SBI is one of the most trusted names in the Indian banking industry hence the assurance of safety comes along too with the SBI PPF scheme.

How to avail SBI PPF Scheme

PPF account opening in SBI requires a PPF form to be filled and submitted along with some other documents required by the bank. Not all SBI branches offer PPF account opening facility and hence you are required to find out your nearest SBI branch that does. Once the duly filled PPF form and relevant documents are submitted your PPF account will be opened by the bank. A PPF passbook is furnished to you by the bank; this contains information regarding all your PPF transactions.

Documents required to open SBI PPF Account

Certain documents need to be submitted to the bank for PPF account opening. These documents should accompany a duly filled PPF account opening form. The list of these documents is mentioned below.

Duly filled PPF account opening form
Proof of identity. For example, driving license, PAN card, passport, voter’s id
Proof of residence or current address proof
Couple of passport size photographs

Mostly, SBI requires you to self-attest these documents and to carry the original documents for cross-verification during account opening.

SBI PPF Account opening Form

SBI PPF account opening form is a very short and simple form which requires customers to fill in some basic details like –

Name
Initial amount of deposit
Signed declaration for PPF account opening
Details of all PPF account held by customer till date
Signature of customer to signify compliance to all regulations that drive the PPF scheme

SBI PPF Account Rules and Guidelines

Certain rules and guidelines apply to PPF account opening with SBI. These rules and guidelines are to make customers aware about the various aspects of SBI PPF account.

Duration of SBI PPF schemeSBI offers PPF scheme for an initial duration of 15 years after which customers can request extensions in blocks of 5 years. One or more such 5 year blocks can be requested by customers.
Eligibility criteria to avail SBI PPF schemeAll Indian individuals can avail the SBI PPF scheme either in their own name or in the name of minors. Hindu undivided families are not permitted to avail a single PPF scheme in their name.
Investment limit for PPF accountA minimum investment of Rs.500 per annum or a maximum of Rs.1,50,000 per annum can be deposited as PPF amount. Any amount higher than Rs.1,50,000 earns neither interest nor any tax rebate and hence should not be invested. The amount deposited in the PPF account can either be deposited via single payment or via twelve installments per year.

SBI PPF Account Features and Benefits

Nomination FacilitySBI PPF scheme offers nomination facility to customers. This nomination can be made in terms of the number of PPF shares too.
Tax benefits applicable on SBI PPF schemeSBI PPF scheme offers the most amazing tax benefits that any investment scheme has. The interest earned is totally exempt from income tax under section 88 of the Income Tax Act. The outstanding PPF amount for customers is also fully exempt from wealth tax payment. These tax benefits make PPF saving scheme one of the most lucrative savings tool.
Loans and withdrawals against SBI PPF accountLoans from SBI against SBI PPF accounts are permitted. Similarly, partial withdrawals also are allowed on SBI PPF accounts. However, the loan amount and the amount of partial withdrawal is subject to the age of the PPF account and to the PPF balance on any given date. Loans and withdrawals are basically under the sole discretion of the bank.
Transfer of SBI PPF AccountThe SBI PPF account can be transferred to any other bank or any other SBI branch or even to post office PPF upon transfer request by customer. This transfer of PPF account is totally free of any service charge.

How to open SBI PPF Account Online?

SBI, India’s largest bank, has the facility to apply for a PPF account online. It is part of the internet banking service provided by the bank.

The steps to be followed to open a PPF Account online are simple

Access the official internet banking website of SBI i.e. onlinesbi.com. Log in to your personal account using the required credentials.
Find the ‘e-services’ section and click on ‘New PPF Account’. Your personal details and PAN are displayed.
The account can also be opened for a minor. In such a case, you will have to click on the check box provided under the details.
Then, mention the branch code. You can use the Branch Locator tool provided by SBI to find the five-digit branch code. The name of the branch is displayed once the branch code is entered.
You should then enter details of the nominees of the PPF account.
After filling in all the details, click ‘Submit’.
The PPF online application should then be printed and submitted to the branch along with a photograph and KYC documents within 30 days of online application. The online application form is partially filled and can be found under the ‘Print PPF Online Application’ tab.

Points to note while making PPF Payment Online

Once the PPF account has been created, deposits can be made. The amount that can be deposited is not fixed by SBI. The government, however, has fixed the minimum deposit limit as Rs.500 and maximum deposit limit as Rs.1.5 lakh per year.

Internet banking makes the process of depositing money quick and convenient. To transfer money to your PPF account, all you need to do is log in to your bank account and make the payment to the PPF account.

It is important to ensure that all details provided are precise.

The account number to be entered for transfer is the SBI PPF account number. Ensure that you enter the details correctly.
The name of the Payee should match the name of the account holder of the SBI PPF account.

Interest Rate on SBI PPF Scheme

SBI offers an attractive interest rate for PPF account holders. Currently, the rate is 8.7% per annum and translates into a better rate than any other investment option since the returns earned are totally tax-free. SBI pays the interest for full year on March 31st. The applicable interest amount is calculated on the minimum balance between the 5th and the last day of a month.