What is SBI PPF Account – Features, Benefits and Interest Rate of SBI PPF Account

The PPF scheme offered by State Bank of India was initiated in the year 1968 by NSI for flexible mobilization of small savings in India. Here’s everything you need to know about the SBI PPF Account.

State Bank of India (SBI) is a public sector bank that is regarded as one of the most trusted banks in the country. The SBI PPF account was started in the year 1968 by National Savings Institute, which functions under the aegis of Dept. of Economic Affairs, Min. of Finance, Government of India. The organization works towards mobilizing savings in National Savings Schemes of the government via the post offices and designated banks in India.  Let us know about the SBI PPF plan in detail.

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What is an SBI PPF Account?

Public Provident Fund (PPF) is a long-term investment scheme initiated by the Indian Government for best long-term returns. The scheme offers a good rate of interest and allows the policyholder to start the scheme with low investment. Thus, one can start a SBI PPF account with an amount as low as INR 500, whereas the maximum amount is INR 1.5 lakh in a financial year.

Not only that, PPF accounts also allow the account holder to avail loan facility after 3 years of plan initiation until the 6th year of the scheme. On the other hand, there is a partial withdrawal facility that is available under the scheme starting from the 7th year onwards.

Details of SBI PPF Scheme

Know More: Best 6 SBI Investment Plans for 5 Years

Benefits of SBI PPF Scheme / (भारतीय स्टेट बैंक में पीपीएफ खाता के लाभ)

Being a safe and secured scheme, the SBI PPF account allows several benefits including tax deduction. Here are certain key benefits and features of SBI PPF Account (भारतीय स्टेट बैंक में पीपीएफ खाता के लाभ):

1. Eligibility Criteria

SBI PPF account is available for everyone alike. Anyone can open a SBI PPF Account on his/her own name. In case of a minor, it can be opened on the behalf of the minor child by parents and guardians.

2. Investment Limits

As mentioned earlier, the minimum amount that can be invested under this scheme is INR 500 whereas the maximum amount of ₹1.5 lakh per annum. The policyholder can get the investment done by paying a lump sum amount or can be done in 12 easy installments in a year.

3. Long Policy Duration

The SBI PPF account has a maximum duration of 15 years. However, the policyholder can extend the account span for another 5 years once the policy matures

4. Best Interest Rates 

As far as the SBI PPF interest rate is concerned, it is the central government who decides the interest rate on a quarterly basis. At present, the rate of interest is around 8% per annum, which is calculated on the minimum balance of the account and is counted from the 5th day till the month-end. It is paid on 31st March every year.

5. Tax Benefits 

SBI PPF accounts allow tax benefits under Sec 80C of the Income Tax Act. The returns that are earned under this scheme are also tax-free.

6. Easy Loans and Withdrawal facility

SBI PPF Scheme allow easy availability of loans and withdrawals depending on how old the account is as well as the balance that is available in the PPF account

7. Nomination facility

The account is available with a nomination facility. The policyholder can nominate one or more person as nominee and can also decide how much to pay to the different nominees

8. Account Transfer 

Another benefit of SBI PPF account is that it allows the policyholder to transfer the account. So, you can transfer your PPF account to any other branch of your bank, to another post office or to a new bank without any cost being levied.

Read More: SBI Senior Citizen Savings Scheme

Things to consider while opening a SBI PPF Account

Anyone can open a SBI PPF account in a bank or a post office. However, if you already have a SBI bank account, it becomes easier to open a PPF account conveniently. Further, SBI customers can open a PPF account online at any time smoothly.

The bank has also initiated digital service to allow customers to open PPF accounts in an instant via online mode without much paperwork.

Moreover, SBI customers can use the facility of mobile banking/Mobile App to open a PPF account anytime, anywhere.

Things to consider while opening a SBI PPF Account Online

Here are some requirements of SBI PPF account online:

• The interested individuals must have an SBI Savings Bank account
• The individuals must have internet banking facility for the said SBI account
• Further, the SBI account should also be linked to the ‘Aadhaar’ number of the individual
• In addition, the authorized mobile number offered for the account should also be active and linked to the Aadhaar number.
• The account holder needs this number to sign into the account and for e-authorization purpose (for receiving OTP or one-time-password) to open the account instantly

How to Open a PPF Account in SBI Online?

Here are the steps to open PPF account online SBI:

• The first requirement is to have an SBI account with internet banking facility for the individual willing to open an account
• Once the user login to the SBI account using internet banking, he/she is likely to visit the ‘Request & Enquiries’ page and click on the ‘New PPF account’ option
• The screen will display the details of the applicant including his/her name, address etc.  In case, you want to open the PPF account for your minor child, select the option – ‘SBI PPF for a minor’ and offer information about the minor including name, date of birth, relationship with the applicant etc.
• Now, the applicant can enter the specific branch code and the IFSC code
• Enter the nominee details. For minors, only a guardian can be named as nominee facility is not allowed in such case
• Finally, click the ‘Submit’ button, and you will be redirected to the next page with the below details:

Once the application form is submitted, you will get a reference number that will be valid for 30 days from the date of submission. Hence, the applicant is required to visit the nearest SBI branch and submit his/her KYC documents within 30 days. You must also carry a print out of the Online Application of the PPF account along with a photograph.

Also Read: EPF vs VPF vs PPF: Which one is better?

Documents Needed to open a SBI PPF Account

Here are the documents that one need to open a PPF account:

• Account opening form for SBI PPF account
• Copy of PAN card
• ID proof of applicant
• Form of Nomination
• Passport size photograph
• Address proof of Applicant

 

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