SBI PPF Account: In this era of digital banking, initiating the process of opening an SBI PPF account online is incredibly simple. While you can begin the process online, keep in mind that you will need to visit an SBI branch once to submit the required documents and complete the process. With your SBI net banking credentials, you can start the PPF account opening process from anywhere. The prerequisites to open a PPF account in SBI are: having an active SBI Savings Account, a linked Aadhaar number, Internet Banking Access, and an active mobile number. These requirements ensure a smooth and secure PPF account opening process.
In this article, we will guide you through the step-by-step process to create a PPF account in SBI online, SBI PPF interest rates 2023, with a one-time visit to the branch for documentation. Before we delve into the procedure, let’s quickly recap what a PPF account is.
Quick Summary About SBI PPF Account
The table provides a comprehensive summary of the process to open a Public Provident Fund (PPF) account with the State Bank of India (SBI).
| Title | Description |
|---|---|
| Introduction | Digital banking has made it incredibly easy to open a PPF account online with SBI, which can be done anywhere with SBI net banking credentials. |
| About PPF | The Public Provident Fund (PPF) is a long-term savings scheme run by the Indian government, offering tax benefits, attractive interest rates, and safety. Non-Resident Indians and Hindu Undivided Families are not eligible. |
| PPF Interest Rate and Account Duration | PPF accounts earn 7.1% interest and can be extended for another 5 years after maturity. If closed prematurely, the interest is penalized by 1%. |
| Loan and Tax Benefits | From the third financial year, up to 25% of the balance can be loaned. The scheme also offers tax benefits, such as the exemption from income tax on interest earned, wealth tax exemption, and the Section 80C deduction. |
| SBI PPF Account Online | Opening an SBI PPF account is simplified due to advances in digital banking. The process can be completed from home using SBI net banking credentials. |
| Eligibility | Anyone can open a PPF account in their own name. Legal guardians or parents can open an account on behalf of a minor or an individual who is mentally unsound. Non-Resident Indians and Hindu Undivided Families are not eligible. |
| Pre-Requisites | An active SBI Savings Account, a linked Aadhaar number, Internet Banking Access, and an active mobile number are required. |
| Step-by-step Procedure to Open PPF Account in SBI | An account can be opened online by visiting the official SBI portal, logging in, navigating to the PPF opening option, initiating the process, reading instructions, selecting a savings account, entering deposit and nominee details, making an initial deposit, and confirming the account creation. |
| Preparing and Submitting the Application Form | After completing the online application, the PPF account opening form needs to be printed, signed, and submitted at an SBI branch within 30 days, along with self-attested photocopies of KYC documents. |
| Presenting Original Documents for Verification | All original KYC documents need to be presented at the bank for verification. |
| Offline PPF Account Opening | A PPF account can also be opened offline by visiting an SBI branch, acquiring the PPF account opening form (Form A), filling and submitting it along with KYC documents, making the initial deposit, and obtaining the PPF account number. |
About PPF
The Public Provident Fund, also known as PPF, is an Indian government-run long-term savings plan that offers tax benefits, attractive interest rates, and safety. The program is available to individuals and legal guardians of minor children, however, it is not available to Non-Resident Indians or Hindu Undivided Families (HUFs).
A PPF account can be opened at banks (public and private), post offices, and online platforms with a minimum subscription of Rs. 500. One can contribute between Rs. 500 and Rs. 1,50,000 annually, allowing them to be flexible based on their finances.
PPF accounts are currently earning 7.1% interest, which is determined by the government. There is an option to extend the account for another five years after it matures after 15 years. The interest accrued is penalized by 1% if the account is prematurely closed after five financial years.
A loan of up to 25% of the balance is available from the third financial year. Additionally, this savings scheme offers significant tax benefits, including the exemption from income tax on interest earned, the wealth tax exemption, and the Section 80C deduction.
SBI PPF Interest Rates 2023
The PPF interest rates are determined by the Indian Government and are subject to change every quarter based on market dynamics. In 2023, the interest rate for PPF accounts in SBI is set at 7.1%, which is consistent with the rate offered by other major banks and the Post Office.
This interest rate is compounded annually and is credited to the PPF accounts at the end of each financial year. Although the interest is calculated monthly, it is deposited annually on the 31st of March.
| Period | Interest Rate |
|---|---|
| At present | 7.1% |
| 1.7.2019 – 31.3.2020 | 7.9% |
| 1.10.2018 – 30.6.2019 | 8% |
| 1.1.2018 – 30.9.2018 | 7.6% |
| 1.7.2017 – 31.12.2017 | 7.8% |
| 1.4.2017 – 30.6.2017 | 7.9% |
| 1.10.2016 – 31.3.2017 | 8% |
| 1.4.2016 – 30.9.2016 | 8.1% |
| 1.4.2013 – 31.3.2016 | 8.7% |
| 1.4.2012 – 31.3.2013 | 8.8% |
| 1.12.2011 – 31.3.2012 | 8.6% |
| 1.3.2003 – 30.11.2011 | 8% |
| 1.3.2002 – 28.2.2003 | 9% |
| 1.3.2001 – 28.2.2002 | 9.5% |
| 15.1.2000 – 28.2.2001 | 11% |
| Up to 14.1.2000 | 12% |
SBI PPF Account Online
Nowadays, it is incredibly easy to open an SBI PPF account. All of this is possible because of advances in digital banking. PPF accounts can be opened online with the State Bank of India.
It is no longer necessary to visit a branch or fill out physical forms. With SBI net banking credentials, you can open your PPF account from anywhere, even at home.
Remember, while setting up your SBI PPF online is convenient, it’s also important to keep your personal and banking details secure. Just keep that in mind, okay?
Eligibility to Open PPF Account in SBI
Eligibility for Individual Applicants: When it comes to opening a PPF account with SBI, anyone can do so under their own name. It’s a straightforward and accessible savings and investment option for most individuals residing in India. However, remember, you can only hold one PPF account in your name.
Opening a PPF Account for Minors: As a legal guardian or parent, you are permitted to open a PPF account on behalf of a minor or an individual who is mentally unsound. However, parents should note that while they can open an account for their minor children, both parents can’t open separate accounts for the same child – it has to be either the mother or the father, not both.
Restrictions for Non-Resident Indians (NRIs) and Hindu Undivided Families (HUFs): It’s also crucial to understand that Non-Resident Indians (NRIs) are not eligible to open a new PPF account with SBI. However, if your residential status changes to NRI after you have opened your PPF account, you can continue your account until it matures but cannot extend it further.
Moreover, Hindu Undivided Families (HUFs) are not permitted to open a new PPF account with SBI. Those HUFs who had an account before May 13, 2015, can continue to use it until it matures, but they can’t extend it.
Initial Subscription Requirement: To kick-start your PPF account with SBI, all you need is a minimum initial subscription of Rs.500! This makes it an easily accessible savings and investment scheme for a large population of India.
Pre-Requisite to Open PPF in SBI
- SBI Savings Account: You should have an active savings bank account with SBI. This is necessary because the PPF account will be linked to this account for online transactions.
- Linked Aadhaar Number: Your Aadhaar number should be linked to your SBI savings account. Aadhaar is a 12-digit unique identity number issued by the Indian government. It’s often used for verification purposes when opening new bank accounts, including PPF.
- Internet Banking Access: You should have the Internet banking user ID and password for your SBI account. If you haven’t activated Internet banking for your account yet, you need to do this before you can open a PPF account online.
- Active Mobile Number: Your mobile number should be active and linked to your bank account. This is necessary because you’ll receive a One-Time Password (OTP) on this number during the PPF account opening process.
These prerequisites are intended to ensure that the online PPF account opening process is smooth and secure.
Step-by-Step Procedure to Open PPF Account in SBI
Step-by-step procedure to open a Public Provident Fund (PPF) account in the State Bank of India (SBI) online:
- Visit the official SBI Portal: Go to the official online banking portal of SBI.
- Login: Enter your user ID and password to log in to your online banking account.
- Navigate to the PPF opening option: Click on “Deposit & Investment”, then click on “Public Provident Fund (PPF)”.
- Initiate the process: Click on the “PPF Account Opening (Without Visiting Branch)” option.
- Read the instructions: There will be several instructions and terms & conditions. Read them carefully, then click on the “Proceed” button.
- Select your savings account: Choose your existing SBI savings bank account from the list, then click on “Proceed”.
- Account details: Your account details will be automatically filled based on the information from your savings account.
- Enter deposit and nominee details: Enter the amount you want to deposit in the PPF account, add a nominee if you wish to, select the declaration checkbox, and then click on “Submit”.
- Initial deposit: Make an initial deposit for your PPF account through online mode.
- Confirmation: That’s it! Your PPF account will be created. Make sure to note down or print the details of your new SBI PPF account.
- Preparing and Submitting the Application Form: Following your completion of the online application, you’ll need to print out the PPF account opening form. You can do this by selecting ‘Print PPF Online Application’. Sign on the necessary pages and gather self-attested photocopies of the requisite KYC documents (such as PAN, Aadhaar, and so forth). Then, within the next 30 days, take these to the SBI branch where you wish to open your PPF account, along with a recent photograph.
- Presenting Original Documents for Verification: Remember, when you go to the bank for your PPF account opening, ensure you bring along all your original KYC documents. These will be crucial for the verification process carried out by the bank personnel.
Remember, always cross-check with the latest guidelines on the official SBI website or contact customer service for the most accurate and updated information.
How to Open SBI PPF Account Offline
- Heading to the SBI Branch: Step 1: Make your way to the nearest SBI branch that has the authorization to set up PPF accounts.
- Acquiring the Necessary Form: Step 2: At the bank, request the designated form for opening a PPF account, commonly referred to as Form A.
- Completing and Submitting the Form: Step 3: Fill out Form A thoroughly and accurately. Along with this, submit the necessary Know Your Customer (KYC) documents.
- Making the Initial Deposit: Step 4: An initial deposit is required to activate your PPF account. This can be done through various methods such as cash, a cheque, or a Demand Draft (DD).
- Obtaining the PPF Account Number: Step 5: Once your application has been processed by the bank officials, they will provide you with a PPF account number for your newly opened account.
PPF Calculator: PPF Maturity Value Calculation
FAQs About Opening an SBI PPF Account
1. What is the process of opening a PPF account online with SBI?
– You can open a PPF account online with SBI by visiting the official SBI portal, logging into your account, navigating to the PPF opening option, initiating the process, reading instructions, selecting a savings account, entering deposit and nominee details, making an initial deposit, and confirming the account creation.
2. What are the prerequisites to open a PPF account with SBI?
– To open a PPF account with SBI, you need to have an active SBI Savings Account, a linked Aadhaar number, Internet Banking Access, and an active mobile number.
3. Who is eligible to open a PPF account with SBI?
– Any individual can open a PPF account in their own name. Legal guardians or parents can open an account on behalf of a minor or an individual who is mentally unsound. Non-Resident Indians (NRIs) and Hindu Undivided Families (HUFs) are not eligible.
4. What are the loan and tax benefits associated with a PPF account?
– From the third financial year, up to 25% of the balance can be loaned. The scheme also offers tax benefits, such as the exemption from income tax on interest earned, wealth tax exemption, and the Section 80C deduction.
5. What is the interest rate and duration of a PPF account?
– PPF accounts earn 7.1% interest and have a tenure of 15 years, which can be extended for another 5 years after maturity.
6. Can I open a PPF account offline with SBI?
– Yes, you can open a PPF account offline by visiting an SBI branch, acquiring the PPF account opening form (Form A), filling and submitting it along with KYC documents, making the initial deposit, and obtaining the PPF account number.
7. What happens after I complete the online application for a PPF account?
– After completing the online application, you need to print the PPF account opening form, sign it, and submit it at an SBI branch within 30 days, along with self-attested photocopies of KYC documents. You also need to present all original KYC documents at the bank for verification.
8. Who cannot open a PPF account with SBI?
– Non-Resident Indians (NRIs) and Hindu Undivided Families (HUFs) are not eligible to open a PPF account with SBI.
9. Can I open more than one PPF account with SBI?
– No, you can open only one PPF account under your name. However, as a parent or legal guardian, you can open another PPF account on behalf of a minor or an individual who is mentally unsound.
10. What is the minimum subscription required to open a PPF account with SBI?
– The minimum subscription to open a PPF account with SBI is Rs. 500.