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Sunday, 17 September 2017

SBI PPF Account : How to open PPF Account in SBI

PPF Account in SBI


SBI PPF Account : How to open PPF Account in SBI



PPF (Public Provident Fund) scheme was introduced by Central Government in 1968 to mobilize small savings. PPF account is a popular and one of the best long-term investment schemes in India. The scheme offers risk-free returns with attractive interest rate coupled with income tax benefits. Since anyone can invest in PPF scheme easily, it provides a retirement security for salaried as well as the self-employed class of individuals.
PPF account can be opened any Post Office and selected branches of some banks. India’s biggest lender SBI (State Bank of India) offers the facility to open PPF account. PPF account opening in State Bank of India is always preferred by everyone in India as SBI is a trusted name in the banking industry. Let’s know more details about PPF account through SBI.


How to open PPF Account in SBI

To open a PPF account in SBI, you need to fill Form A (PPF account opening form) and submit it at any SBI branch with required documents. You have to mention the name of the branch where you want your PPF account to be opened on Form A.


PPF Account opening form (Form A)

How to get PPF account opening form online
1. Login to OnlineSBI using your internet banking Username and Password.
2. Go to the menu header and click on “e-Services” tab.
PPF Account in SBI

3. Find the “New PPF account” under “My Accounts” appearing on the left-hand side of the screen.
4. Select option "Apply For PPF Account".
PPF Account in SBI

5. Provide branch code. You can find this code in your saving account Passbook.
6. Provide Nominee name and % of amount for each nominee. 
7. Now go to tab Print PPF online application and print it.
8. Kindly note that you can't open PPF account through Internet banking only, you have to visit a branch for opening a PPF account in SBI with all required documents.


Eligibility to open PPF Account in SBI

PPF account can be opened by resident Indian Individuals in their own name as well as on behalf of a minor at any branch. HUFs (Hindu Undivided Family) are not eligible to open PPF accounts. Only one PPF account can be maintained by an Individual, except an account that is opened on behalf of a minor.
Either Mother or Father can open PPF account on behalf of their minor child. Mother and Father both cannot open PPF accounts on behalf of the same minor.
Grand-parents cannot open a PPF account on behalf of minor grand-child. But in case of death of both the parents (Father and Mother), PPF account can be opened by Grand-parents as guardians of the Grand-child.



Documents required

Following documents are required for opening PPF account in SBI
1. Form A (PPF account opening form)
2. Nomination Form.
3. Passport size photograph
4. Copy of PAN card/ Form 60-61
5. Identity proof and residence proof as per bank’s KYC norms.

Investments limits in PPF Account

An individual has to deposit the minimum of Rs. 500 and maximum Rs. 1,50,000 in a financial year. Any excess amount deposited in PPF account will neither earn any interest nor will be eligible for rebate under Income Tax Act. The amount can be deposited in lump sum or in a maximum of 12 installments during a financial year.


Tenure of the PPF Account

The original tenure of the PPF account is 15 years. Thereafter, on application by the PPF account holder, it can be extended for 1 or more blocks of 5 years each.


Rate of Interest

The rate of interest is determined by Central Government on quarterly basis. Interest is calculated on the minimum balance between 5th day and end of the month. Interest is paid on 31st March every year.

Transfer of PPF Account

PPF account can be transferred to other branches/ other banks or Post Offices and vice versa upon request by the PPF account holder. The service is free of charges.


PPF Account through SBI Net Banking

SBI offers you the convenience of viewing your PPF account balance, transferring funds from linked savings account online and viewing your PPF account statement online in your SBI Net Banking Account.



Also read: Public Provident Fund (PPF) - A popular saving scheme
Also read: Things you should know about PPF

Also read: How to check EPF balance/ passbook online
Also read: Name change/ correction in EPF account - The process and Form

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