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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.
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.
PPF Scheme | Details |
Interest Rate | 7.9 % |
Duration | 15 years |
Account | Can be opened easily without any hassle in any Bank or Post Office |
Nominee | Nominee can be added |
Eligibility | Can be opened by a policyholder on his/her own name. In case of minor, it can be opened on behalf of the child by parents/guardian |
Investment Limit | Starts from INR 500 (minimum), INR 1.5 lakh (maximum) |
Know More: Best 6 SBI Investment Plans for 5 Years
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):
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.
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.
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
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.
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.
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
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
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
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.
Here are some requirements of SBI PPF account online:
Here are the steps to open PPF account online SBI:
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?
Here are the documents that one need to open a PPF account:
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