Benefits of Opening a PPF Account in SBI
The SBI PPF account is a long-term investment scheme offered by the Government of India, with attractive interest rates and returns. The minimum investment in the scheme is ₹500 and the maximum is ₹1.5 lakh per fiscal year. The account can be opened in the name of an individual or a minor, but not in the name of a Hindu Undivided Family. Benefits of Opening a PPF Account in SBI
Public Provident Fund (PPF) is a Government of India scheme, and it is a long-term investment scheme that also offers lucrative interest rate and optimal returns. The investments can be as low as ₹500 and a maximum of ₹1.5 lakh in a fiscal year. Moreover, one can avail loan facility between 3rd and 6th fiscal year. The scheme also offers partial withdrawal facility from the 7th fiscal year. Benefits of Opening a PPF Account in SBI
The Key Features of The Sbi Ppf Account Are as Follows:
- SBI PPF Account Eligibility Criteria: SBI PPF account can be opened at any bank branch or post office in the name of an individual or a minor. Benefits of Opening a PPF Account in SBI
- SBI PPF Tax Benefits: Contributions made towards a PPF account are tax-deductible up to Rs.1.5 lakh per annum under Section 80C of the Income Tax Act. The interest earned on the PPF account is also tax-free.
- Limit on Investment: The investment can be made in a lump sum or in 12 installments in one year, with a minimum amount of ₹500 and a maximum of ₹1.5 lakh per annum.
- Duration of SBI PPF Scheme: The scheme has a duration of 15 years, which can be further extended in a span of 5 years each. Benefits of Opening a PPF Account in SBI
- SBI PPF Interest Rate: The PPF interest rate is decided by the Central Government on a quarterly basis, currently at 8.0% per annum. Interest is calculated on the minimum balance in the account from the 5th day and the month-end, and is paid every year on 31st March.
- Guaranteed Returns: The interest rate on a PPF account is determined by the government and This interest rate is fixed for each financial year and is guaranteed by the government.
- SBI PPF Loans and Withdrawals: Loans and withdrawals are permitted as per the age of the account and the deposited amount till date. Partial withdrawals are allowed from the 7th fiscal year.
- Flexible Deposits: Deposits into a PPF account can be made in multiple installments, subject to a maximum of 12 per financial year. The minimum amount of deposit is Rs.500, and the maximum is Rs.1.5 lakh per financial year.
- Nomination: The account comes with a nomination facility in the name of one or more than one person, and the subscriber can decide the shares of nominees.
- Transfer of SBI PPF Account: The account can be transferred to other branches, post offices, or banks, free of cost. Benefits of Opening a PPF Account in SBI
- Premature Payment: Premature payment is allowed on completion of five fiscal years of the account, for the treatment of serious ailments or critical illness of the account holder or their family, or for the higher education of the minor account holder. Supporting documents are required for such withdrawals.
Things To keep In Mind Before Opening an SBI PPF Account Online
Opening a Public Provident Fund (PPF) account can be done in a designated post office or bank branch. However, if you are an SBI account holder, the process is more convenient and time-efficient. SBI customers can easily open a PPF account online anytime. Benefits of Opening a PPF Account in SBI
SBI has introduced a digital service allowing customers to open a PPF account instantly and paperlessly online. With this, SBI customers can open a PPF account at their convenience through internet banking, mobile banking, or mobile app. Benefits of Opening a PPF Account in SBI
Before opening an SBI PPF account online, there are some important requirements to consider:
- The applicant must possess an SBI Savings Bank account
- The SBI account should have mobile banking or net banking enabled
- The applicant’s Aadhaar number must be linked to the SBI account
- The authorized mobile number linked to the Aadhaar must be active. It will be required to sign and e-authorize using the OTP (one-time-password) for an instant PPF account opening. Benefits of Opening a PPF Account in SBI
How to Open SBI PPF Account Online?
If you are an SBI Savings Bank account holder and have Internet banking/Net-banking enabled for your account, you can easily open an SBI PPF account online in a few simple steps:
- Log in to your SBI Internet banking account using your username and password.
- Navigate to the ‘Request & Enquiries’ option and click on ‘New PPF account’.
- Enter your personal details such as name, address, etc. If you want to open a PPF account for a minor, select the appropriate option and provide the minor’s details.
- Enter the specific branch code/IFSC code where you want to open the account.
- Enter the nomination details. Note that joint holding is not allowed in PPF accounts, only nomination can be done. For minors, only a guardian can be named. Benefits of Opening a PPF Account in SBI
- Click ‘Submit’ to generate a reference number, which will be valid for 30 days from the submission date.
- Visit the nearest SBI bank branch with the KYC documents, a printout of the SBI PPF Online Application, and a photograph within 30 days to complete the account opening process. Benefits of Opening a PPF Account in SBI
Documents Required for SBI PPF Account
The following documents are required to open a PPF account in SBI:
- SBI PPF opening form
- PAN card photocopy
- Applicant’s ID proof
- Nomination Form
- Passport size photograph
- Applicant’s residential proof
Frequently Asked Questions (FAQs) about SBI PPF account:
Q: What is SBI PPF account?
SBI PPF account is a long-term investment scheme offered by the State Bank of India. It is a Government of India scheme that provides a safe and secure investment option with tax benefits.
Q: What is the minimum and maximum amount that can be invested in SBI PPF account?
The minimum amount that can be invested in SBI PPF account is Rs. 500 per year, while the maximum amount is Rs. 1.5 lakh per year. Benefits of Opening a PPF Account in SBI
Q: What is the lock-in period for SBI PPF account?
The lock-in period for SBI PPF account is 15 years. After the completion of 15 years, the account holder can extend the account for a block of 5 years.
Q: What is the interest rate on SBI PPF account?
The interest rate on SBI PPF account is fixed by the Government of India and is subject to change every quarter. Currently, the interest rate on SBI PPF account is 8.0% per annum.
Q: Is the interest earned on SBI PPF account taxable?
No, the interest earned on SBI PPF account is tax-free.
Q: Can I take a loan against my SBI PPF account?
Yes, you can take a loan against your SBI PPF account from the 3rd to the 6th year of account opening. The loan amount is limited to 25% of the balance at the end of the 2nd year.
Q: Can I withdraw money from my SBI PPF account before the completion of the lock-in period?
Partial withdrawals are allowed from the 7th year of account opening, subject to certain conditions. Complete withdrawal is allowed only on the maturity of the account, i.e., after 15 years.
Q: Can I transfer my SBI PPF account to another bank or post office?
Yes, you can transfer your SBI PPF account to another bank or post office by submitting the transfer request form along with the original passbook to the new branch/post office. Benefits of Opening a PPF Account in SBI
Q: Can I open multiple SBI PPF accounts?
No, you cannot open multiple SBI PPF accounts. Only one account can be opened in the name of an individual, except for a minor, in which case the guardian can open a separate account. Benefits of Opening a PPF Account in SBI
Q: What are the eligibility criteria for opening an SBI PPF account?
Any Indian citizen can open an SBI PPF account in their own name or on behalf of a minor. However, HUFs cannot open an SBI PPF account. Benefits of Opening a PPF Account in SBI