SBI PPF Account: A Complete Guide on Benefits, Interests, Eligibility & Much More

The State Bank of India, one of the most reputable and very well-liked public sector banks in India, provides the SBI PPF account. Now that technology has advanced, it is possible to open SBI PPF online. This program was launched by the National Savings Organization in 1968 to provide flexibility for minor savings mobilization. 

The Indian government provides customers with safe returns and enticing interest rates through this program. According to Section 80C of the Income Tax Act, returns you receive from PPF are completely tax-free. You can also access services like loans, withdrawals, and account extensions by opening a PPF account. This guide will make you understand the SBI PPF Accounts better so that you can easily get one for yourself.

What is an SBI PPF Account?

Powered by the Government of India, the Public Provident Fund (PPF) program is a long-term investment program that also provides a profitable interest rate and the best returns. The investments can be as low as ₹500 and a maximum of ₹1.5 lakh in a fiscal year. Additionally, a loan facility is available from the third to the sixth fiscal year. The program also provides a partial withdrawal option beginning with the seventh fiscal year.

Features and benefits of the PPF scheme

Investments made in this scheme are secure and safe. The program also provides tax exemption benefits on the amount deposited. Following is a list of some of the main attributes of the SBI PPF Accounts:

• SBI PPF Account eligibility criteria: A SBI PPF Account may be opened at any bank branch or post office in one’s own name as well as on behalf of a minor. However, a Hindu Undivided Family cannot have a PPF account opened in its name.

• Investment Limits: The minimum deposit amount is 500, while the annual maximum is 1.5 lakh. The investment can be made fully at once or over the course of a year in 12 installments.

• SBI PPF Scheme’s Duration: The program’s duration is 15 years. The plan can be extended further for five years after it has matured.

• SBI PPF Interest Rate: The Central Government sets the PPF interest rate on a quarterly basis. It is currently 07.10% annually. Every year on March 31, SBI PPF Interest Rate is calculated based on the minimum balance in the account between the fifth and last day of the month.

• Tax Benefits: Tax benefits under Sec 88 of the Income Tax Act. Interest earned is also tax-free. The amount due for the credit is also exempted from Wealth Tax.

• Loans and Withdrawals: SBI PPF allows loans and withdrawals based on the account’s age and the amount deposited so far (as on the specified dates).

• Nomination: SBI PPF accounts also offer the nominee option for one or more people in their name. The candidates’ shares may also be chosen by the subscriber.

• Transfer of Account: There are no fees associated with moving an SBI PPF account to another branch, post office, bank, or the other way around.

Things to keep in mind before opening an online PPF Account

Some requirements to open an online SBI PPF account are listed below:

• The subscriber must have an SBI Savings Bank account.

• The subscriber’s SBI account must allow for mobile and online banking.

• The account must be linked to the “Aadhaar” number.

• Your Aadhaar should be linked to an authorized mobile number that is currently in use. Using the OTP, it is necessary to sign and e-authorize (one-time-password). This will enable an instant opening of the PPF account.

How to open SBI PPF Account online?

The below steps will help you open an SBI PPF account online:

• The subscriber must have an SBI Internet banking username and password

• After logging in, go to the ‘Request & Enquiries’ option and click on the ‘New PPF account.’

• The applicant’s name, address, and other details will be displayed on the screen. Select the option to open an SBI PPF account for a minor if the SBI PPF account is to be opened in the name of a minor. In that situation, it is necessary to mention the minor’s name, birthdate, and relationship to the application.

• Now enter the specific branch code/IFSC code before moving ahead.

• Now enter the nomination details. Joint holding is not allowed in a PPF Account; only nomination can be done. For minors, nominees are not allowed; only a guardian can be named.

• Click ‘Submit,’ and the following information will be displayed on the next page:

Upon submission of the application form, a reference number will be generated, valid for 30 days from the submission date. It will be deleted afterward.

Therefore, within 30 days, visit the nearest bank branch with the KYC documents, a printout of the SBI PPF Online Application, and a photograph.

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

• Passport size photograph

• Applicant’s residential proof

• Applicant’s ID proof

• Nomination Form

Eligibility criteria for opening an SBI PPF Account

Individuals in their own name as well as on behalf of a minor or a person of unsound mind can open the account at any branch.

How can the money be deposited into an SBI PPF Account?

Money can be deposited into your SBI PPF account online and offline by visiting an SBI branch or using net banking.

• Online: State Bank of India’s online banking system enables you to make cash deposits into your PPF account. To transfer funds, you must use your login information for your SBI online banking account. The PPF account number where you want to deposit the money must then be entered. Make sure the payee’s name is the same in both accounts.

Offline: SBI PPF account deposits can also be made offline. You can visit any SBI bank branch nationwide to make a deposit of money. Filling out a payslip (Form B) allows you to make an offline fund transfer to your PPF account. Another option is to deposit an account payee check.