For those with a low tolerance for risk, PPF, or Public Provident Fund, is one of most well-liked long-term investment options. With PPF you are assured, of both the returns your PPF amount generates and the money in your PPF account when you register an SBI PPF account. The minimum investment required to start a PPF account is 500, and the PPF interest rate for the first quarter of fiscal year 2022–23 is 7.1 percent.
The National Savings Organization introduced the program in 1968, and it assists individuals in amassing significant sums of money over an extended period of time through small deposits into their accounts.
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About SBI PPF Account
The largest bank in our nation, State Bank of India, or SBI, has a PPF programme with excellent interest rates. SBI makes it incredibly simple for its consumers to utilise the programme because it has branches in more than 15,000 Indian cities. The ability to open a PPF account with SBI online has made the process simpler. As a result, opening a PPF account at SBI has never been easier.
The SBI PPF Account programme offers a high interest rate and numerous tax advantages. Investors who contribute financially to the programme are eligible for these perks, which include account extensions, loan advantages, and withdrawals.
SBI PPF Features and Details
The PPF scheme’s investments are quite safe and secure. The programme also gives significant tax benefits on the deposits made. The following are some key characteristics of the SBI PPF Account:
- Investment Limit – You can put aside anywhere from 500 to 1.5 lakh every year. The range from zero to that is the limit. You have the option of investing all at once or in 12 equal payments over the course of a year.
- Duration of SBI PPF Scheme – The plan is warranted for a 15-year period. You can continue to prolong the plan in increments of five years after it reaches maturity.
- SBI PPF Interest Rate – The Indian Central Government sets the PPF interest rate on a quarterly basis. The minimum balance in the SBI PPF Account that is available between the fifth day and month’s end is used to compute the PPF Rate of Interest, which is calculated yearly on March 31st.
Interest Rate 7.1% P.A. Duration of Scheme 15 years Easy Account Opening? ✓ Can nominees be added? ✓ - Tax Exemption – Under Section 88 of the Income Tax Act, your SBI PPF account will offer tax advantages. Additionally, interest is tax-free. The credit is also exempt from wealth taxes.
- Loans and Withdrawals – Loans and withdrawals from SBI PPF are granted based on the account’s age and the total amount deposited to date.
- Nomination – Additionally, a nomination under the name of one or more than one is made possible for the SBI PPF account. The number of shares the nominees receive can also be chosen by the account holder.
- Transfer of Account – You can move your SBI PPF account for free to other banks, post offices, and branches, and vice versa.
- Premature Payment
Once the account has completed five fiscal years, premature payment is permitted if:
- The money is required to treat the account holder, their spouse, their parents, or their children’s serious illnesses. Payment may be awarded upon presentation of documents from a medical expert supporting the claim.
- The remaining funds are required for the minor account holder’s higher education. Payment may be made upon presentation of supporting documents, bills, and admission evidence from a reputable institution in India or abroad.
SBI PPF Scheme Benefits
A PPF account can be opened with various advantages. Below are some PPF advantages for your convenience.
- PPF provides risk-free profits because they are independent of market volatility.
- Rate of compound interest.
- Deduction for income taxes under Section 80C of the 1961 Income Tax Act.
- 15-year long-term investment
- In relation to your PPF balance, advances and loans.
- Low investment of 500 rupees.
- The ability to extend your PPF account indefinitely in blocks of five years once it achieves maturity.
- Partial withdrawal option for the seventh fiscal year.
What is the SBI PPF Interest Rate?
7.1% per annum.
The central government determines the interest rate on a quarterly basis. At present, the ROI is 7.1% per annum.
How to Open SBI PPF Account
Steps to Open SBI PPF Account Online
SBI has enabled their customers to open their SBI PPF Account online and the steps are listed below:
- To log in, the account holder needs a username and password for SBI Internet banking.
- Go to “New PPF account” after logging in and selecting the “Request & Enquiries” option.
- The applicant’s name, address, and other information will be displayed on the screen.
- Click on the “Open SBI PPF for a Minor” option to create an account in the name of a minor. Include the minor’s name, birthdate, and relationship to the applicant.
- Mention the precise branch code or IFSC code before moving forward.
- Complete the nomination information. Since shared holdings are not allowed in PPF accounts, applicants may only delegate their nominations.
- Assigning nominations for minors is not allowed; instead, a guardian must be named for their account.
- Then click “Submit.”
- A reference number will be generated by the bank once you’ve submitted the application, and it will be good for 30 days after that. The code will be removed after 30 days.
- Because of this, you must visit your nearby bank office within 30 days, bringing the necessary paperwork, a printout of your SBI PPF online application, and a selfie.
Steps to Open SBI PPF Account Offline
The following procedures explain how SBI clients can create their SBI PPF Accounts offline:
- Open a PPF account by going to the nearby SBI bank.
- Obtain an application form from the branch office and complete it according to the instructions on how to start a PFF account.
Without making any mistakes, complete the PPF account application form with accurate information. - Send the SBI PPF account form in the appropriate format, along with all the supporting documentation the bank specifies, to the appropriate bank executive.
- Once you’ve applied, submit the PPF account application form together with the KYC proofs the bank has specified.
Documents Requirement
The following documentation is required to start a PPF account with SBI:
- SBI PPF opening form
- PAN card photocopy
- Applicant’s ID proof
- Nomination Form
- Passport size photograph
- Applicant’s residential proof
SBI PPF Account Eligibility Criteria
You must open the SBI PPF account in your own name. Only when acting on behalf of an investor that is minor at a postal service or bank branch is there an exception. Please be aware, nevertheless, that you cannot register a PPF account under the name of a Hindu Undivided Family.
SBI PPF Account Balance Check
There are two ways to check the balance in your PPF account:
Offline Approach
Visit the SBI bank location where you started your PPF account. It is the closest one.
Online Approach
You can view all the PPF information by logging into your SBI bank account. With the help of net banking, you may examine your current balance, interest earnings, and deposits made in the past.
Frequently Asked Questions (FAQs)
Is SBI PPF account safe?
Yes, PPF accounts are no-risk schemes, and thus are considered to be very safe and secure.
Can someone open more than one Public Provident Fund (PPF) account under his/her name?
No, a person can open only one PPF account under his/her name. However, it is possible for a person to open another account under his/her name for a minor, i.e., an individual under the age of 18.
Is There any Penalty if Money is not Deposited?
Yes, you’ll be fined a sum of ₹50 if ₹500, the minimum amount, is not deposited by the account holder by the end of the year.
Is it Possible for a PPF Account to be Transferred to SBI from Another Bank or Post Office?
Yes, according to the government rules’ PPF scheme, account holders can transfer the PPF account from a bank to a post office and vice versa.
Can I Access the PPF Account Through SBI Internet Banking?
Yes, it is possible to access the PPF account by using SBI internet banking. Account-holders are also able to view their PPF account statement and transfer funds to the PPF account with the help of internet banking.
Can Subscribers Avail Themselves of Loan Facilities Using Their PPF Investment?
Yes, it is possible to access the PPF account by using SBI internet banking. Account-holders are also able to view their PPF account statement and transfer funds to the PPF account with the help of internet banking.
Can Subscribers Avail Themselves of Loan Facilities Using Their PPF Investment?
Subscribers can avail of loan facilities against their PPF accounts between the 3rd and 6th financial years from the date that the account was first started.
Can an NRI Continue and Maintain Their PPF Account if They Opened an Account when They were Indian Residents?
Earlier, as per rules made by the Ministry of Finance, an individual’s PPF account would be deemed closed if they became an NRI. However, according to new government rules dated February 23, 2018, a PPF account can be maintained by NRIs if it was opened when they became Indian residents.
