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All You Need To Know About SBI PPF Account

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The Public Provident Fund (PPF) is an investment strategy provided through regulated public and private sector banks by the Government of India. This framework was initiated in 1968 by the National Savings Institute of the Ministry of Finance. As we all know that the largest commercial giant is State Bank of India several individuals prioritise to open an SBI PPF account since customers can find more bank branches around the country. Financial analysts also state that the SBI PPF account is deemed one of India's most preferred PPF alternatives. For all of us, the Public Provident Fund Scheme has become a popular vehicle to generate a retirement pool. The risk-free persona of the deposit and its tax-free income are the main reasons why millions of people have selected this strategy. The SBI Public Provident Fund account is typically among the most prevalent alternatives among the various public and private sector banks offering the PPF account facility.

 

Eligibility required to open SBI PPF account

It is convenient to open a PPF account, but accepting some eligibility criteria that are listed below:

  • On behalf of his or her name, an individual who is an Indian citizen can open an SBI PPF account. No upper age limit is applicable to open the account.
  • Hindu Undivided Family and Non-resident Indians (NRIs) are not eligible to open a PPF account.
  • A parent/guardian can open an SBI PPF account on behalf of one minor child at the specified branches of SBI.

All You Need To Know About SBI PPF Account

Documents required to open SBI PPF account

You must keep the following documents handy while applying for an SBI PPF account.

  • PPF Account opening form (Form A)/Signed Printout of Form A
  • Identity proof: Aadhaar, PAN, Driving License, Voter ID etc (must be self-attested).
  • Address proof: Passport, Aadhaar Card, Electricity Bill
  • Passport Size Photographs

Key takeaways of SBI PPF account

Some of the main characteristics and advantages of PPF are as follows:

  • One can open an SBI PPF account with a minimum balance of Rs. 500 up to a maximum of Rs. 1.5 lakhs annually
  • Deposits in PPF account can be rendered by a maximum of 12 instalments annually or via lump sum.
  • Deposits in SBI PPF account can be made online through net banking and mobile banking as well as offline by cheque or demand draft.
  • You need to specify the specifics of your family as a nominee for PPF account at the time of opening the account. And also the details of the nominee can be modified at a later date as per your convenience.
  • A new PPF account can not be initiated by an NRI, but if an Indian citizen becomes an NRI prior to the account's maturity, such an SBI PPF account can be maintained without the consideration of continuation or renewal until maturity.

Procedure to open SBI PPF Account

Generally, in a specified post office or bank branch, a PPF account can be opened conveniently. That being said, if you are a customer of SBI Bank, opening a PPF account is an incredibly simple job that can be done without any inconvenience just in a matter of seconds. As an account holder of SBI, you are allowed to open a PPF account online anytime anywhere without compromising your comfort on a 24x7x365 basis. SBI has revealed the introduction of a digital portal that allows a customer to create a truly online and hassle-free Public Provident Fund (PPF) account instantly. Using the digital platform of SBI i.e. internet banking and mobile banking which is known as India's first digital facility to open a PPF account provided by SBI your PPF account opening process is just a few clicks away. Follow the steps listed pointed below in order to open an SBI PPF account from your home or workplace.

 
  • Sign in to your SBI mobile banking or net banking account using the required credentials i.e. User ID and Password.
  • Now head to the "Requests & Enquiries" menu and click on the "New PPF Account" option
  • Now you will be redirected to the next page where you need to fill the PPF form completely.
  • Once you are done with the filling of PPF form, you will get a reference number and a link to download the form which you need to print out later.
  • Now put your sign on the PPF form where required and attach the form with all the mandated KYC documents and passport size photographs.
  • Now visit your preferred SBI PPF account branch to submit the form in order to complete the account opening procedure within 30 days of applying for SBI PPF account.

How to make a withdrawal from your SBI PPF account?

Some prominent components of the SBI PPF account balance withdrawal procedure are listed below:

  • From the 5th year onwards, SBI enables you to withdraw corpus from your PPF account every year.
  • In order to initiate a withdrawal from your SBI Public Provident Fund account, you need to download PPF Form C, duly fill the same and submit it at specified SBI PPF branches.
  • At the end of the fourth year that precedes the withdrawal year or the PPF account balance at the end of the previous year, the maximum amount you can withdraw is restricted to the lower of-50 per cent of the SBI PPF account balance.

All You Need To Know About SBI PPF Account

Key points to note while extending your SBI PPF account

After completion of 15 years from the opening date of account, SBI enables you to extend your PPF account to a subsequent tenure till maturity. Some important points to remember regarding the extension of the SBI PPF account are covered below:

  • In the event of maturity of the PPF account maintained by an NRI, SBI does not authorise PPF extension.
  • In order to extend your PPF account, you need to submit PPF Form H in the bank before 1 year of the account maturity date.
  • During the extension term, your SBI PPF account will continue to get interest at the prevailing rate.
  • During the extension span, you have the alternative of not making any further contributions to your matured PPF account.
  • After the maturity of the account, you can extend your SBI PPF account multiple times in a block of 5 years respectively.

Procedure to check SBI PPF Balance

Using multiple online and offline ways, SBI enables you to verify your PPF account balance as well as all account details. In order to check your SBI PPF balance follow the below covered key details to know more about the same.

  • To verify your PPF account balance online i.e. mobile banking or net banking, you can sign in to your account using the required credentials.
  • You need to first link your SBI savings / current account to your SBI PPF account and get net / mobile banking enabled in order to verify your SBI Public Provident Fund account balance online.
  • All you need to do is get your SBI PPF account passbook updated to verify the balance of your PPF account in case of offline procedure.

Procedure to transfer your SBI PPF account

You are allowed to transfer your PPF account from one SBI branch to another and to/from other banks and post offices across India. Follow the below-listed key details in order to initiate the same.

  • First, you need to contact your existing SBI PPF account branch and make a request for your PPF account transfer.
  • Key details such as the existing PPF account number / branch as well as specifics of the bank / post office to which you want to transfer your account must be specified in the application form.
  • Before submitting the application form to the bank make sure that the passbook of your current PPF account is attached properly with the application form.
  • Once the PPF account transfer is authorized by your existing bank / post office the account will be forwarded with your records/documents to the new bank branch / post office to whom you're transferring your account.
  • And thereafter, to validate your details and get your new PPF account approved with the new branch / bank / post office, you must visit the new bank branch / post office with original KYC records.
  • Once your account is authorized and activated you will get a new passbook from the bank/post office.

All You Need To Know About SBI PPF Account

Loan against your SBI PPF account

You can apply for a loan against a PPF account as an SBI PPF account holder, pursuant to several primary terms and conditions, as described below:

  • Subject to some primary terms and conditions, partial withdrawal of PPF balance is also permissible from the 6th year onwards, i.e. after the end of the fifth year considered from the account opening date. At any given point in time, the maximum amount that you can withdraw represents 50 per cent of the money invested in your PPF account.
  • After completion of at least 3 years of your PPF account but not more than 6 years classified from the date of account opening, the loan against the SBI PPF account can be availed by filling the PPF Form D.
  • The maximum PPF loan available under this policy is equivalent to 25 percent of the corpus of the PPF account declared at the end of the second year.
  • The rate of interest on loan is 2% above the relevant PPF rate , i.e. 9.1% of the loan against the PPF rate for the PPF rate of 7.1% respectively.
  • Subject to SBI guidelines and complete payment of the previous loan against the PPF, the PPF loan can be availed multiple times.

Available ways to make deposit in SBI PPF account

Deposits can be rendered via the online i.e.mobile banking or net banking as well as offline i.e. cheque or demand draft in the SBI PPF account. Follow the below mentioned key specifics in order to know more about the available modes.

  • After linking your SBI savings / current account to your existing PPF account you can make deposits in digital manner with the help of online banking or mobile banking.
  • It is also possible to make online transfers to the PPF account using ECS, NEFT and standing instruction as well.
  • Offline deposits are also allowed via demand draft or cheque.

SBI PPF Interest Rate

Quarter ROI per annum
Q3 FY 2020-21 7.1%
Q2 FY 2020-21 7.1%
Q1 FY 2020-21 7.1%
Q4 FY 2019-20 7.9%
Q3 FY 2019-20 7.9%
Q2 FY 2019-20 7.9%
Q1 FY 2019-20 8.00%
Q4 FY 2018-19 8.00%
Q3 FY 2018-19 8.00%
Q2 FY 2018-19 7.6%
Q1 FY 2018-19 7.6%
Q4 FY 2017-18 7.6%
Q3 FY 2017-18 7.8%
Q2 FY 2017-18 7.8%
Q1 FY 2017-18 7.9%

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