SBI PPF Account – How to Open PPF Account in SBI

SBI PPF Account, How to Open PPF Account in SBI, Eligibility for Opening SBI PPF Account, Documents Required to Open PPF Account, Interest Rates for SBI PPF Account, PPF Account through SBI Net Banking, ….
SBI PPF Account : It is the long-term investment plan targeted towards the self-employed class of India. The Public Provident Fund is a savings-cum-tax-saving instrument in India, introduced by the National Savings Institute of the Ministry of Finance in 1968. The aim of the scheme is to mobilize small savings by offering an investment with reasonable returns combined with income tax benefits. The scheme is fully guaranteed by the Central Government. Balance in PPF account is not subject to attachment under any order or decree of court. However, Income Tax & other Government authorities can attach the account for recovering tax dues.

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.

How to Open PPF account in SBI

PPF is one of popular and best debt investment product. Open PPF account online through SBI Bank and made your life now easier. Let us see the procedure of how to open SBI PPF account online through SBI Bank. SBI Bank also offers customers to open PPF account online instantly. However, it is not 100% online feature. Let me explain you the steps of the same.

  • Login to SBI Banking Internet Banking facility. Search for ‘New PPF Account’ option under the ‘e-services’ section and click on it.
  • You will then find the link ‘New PPF Account’. For existing customers, details including PAN are displayed on this page.
  • Then enter the branch code in the specified field (by locating the branch where you want to be your PPF account).
  • Then enter the nominee details and then click on Submit tab.
  • After this, the portal will issue a reference number.
  • Then print the account opening form from the tab ‘Print PPF Online Application’ (in PDF format) and visit the branch with KYC documents and a photograph within 30 days. After your submission, SBI adds this to its portal.

Eligibility for Opening SBI PPF Account

  • Individuals who are residents of India can open an account under the scheme
  • Only one PPF account can be maintained by an Individual, except an account that is opened on behalf of a minor. Thus, PPF account can also be opened by either parent under the name of a minor. However, each person is eligible for only one account under his/her name
  • Mother and Father both cannot open Public Provident Fund (PPF) accounts on behalf of the same minor. Thus, in case a couple has two children, they can maximum open four accounts i.e. two in their own accounts and two in the name of their children under guardianship of either of the parent.
  • Non-resident Indians (NRIs) are NOT eligible to open an account. However, a resident who becomes an NRI during the tenure prescribed under Public Provident Fund Scheme, may continue to subscribe to the fund until its maturity on a non-repatriation basis. (Funds can be transferred via CASH or NRO Account.
  • Funds can be transferred via Internet banking). However, such an account will not be eligible for extension of five years at the time of maturity

Documents Required to Open PPF Account

For customers who have a relationship with SBI Bank that is < 5 years

  • Form A
  • Passport size photograph
  • Copy of PAN card

For customers who have a relationship with SBI Bank that is > 5 years

  • Form A
  • Passport size photograph
  • Copy of PAN card
  • Residence proof – Passport/ Electricity Bill

Interest Rates for SBI PPF Account:
The Ministry of Finance, Government of India announces the rate of interest for PPF account every quarter. The current interest rate effective from 1 July 2017 is 7.8% Per Annum'(compounded annually). Interest will be paid on 31 March every year. Interest is calculated on the lowest balance between the close of the fifth day and the last day of every month.

Investment Limits and Tenure

  • The Scheme is for 15 years.
  • The minimum deposit is 500/- and maximum is Rs. 1,50,000/- in a financial year.
  • One deposit with a minimum amount of Rs.500/- is mandatory in each financial year.
  • The deposit can be in lumpsum or in convenient installments, not more than 12 Installments in a year or two installments in a month subject to total deposit of Rs.1,50,000/- per FY.
  • It is not mandatory to make a deposit in every month of the year. The amount of deposit can be varied to suit the convenience of the account holders.

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.

Leave a Comment