One of the most popular retirement savings choices for the working class is the PPF. Its long-term investment horizon and compounding capacity, in addition to the income tax exemption attached to it, might be the primary drivers drawing in investors.
Perhaps you’re wondering how to register a PPF account at State Bank of India (SBI), one of your preferred banks. The Public Provident Fund (PPF) account and the comprehensive process for creating an account with SBI are covered in this article.
Public Provident Fund
The Public Provident Fund is one well-liked long-term savings plan (PPF). The Government of India supports it, and it also provides safe returns and competitive interest rates. These returns are fully exempt from taxation under Section 80C of the Income Tax Act.
Investors can save up to Rs. 1,50,000 in taxes in a single financial year. Facilities including loans, partial withdrawals, and account extensions are available to customers. Since EPF/GPF is not available to self-employed individuals or those from unorganized industries, PPF is a good substitute.
Product Features of PPF
7.1% annual percentage rate is an alluring offer because it is completely exempt from income tax under Section 80C of the Income Tax Act. A decent long-term investment horizon is fifteen years. A deposit can be made for Rs. 500 and up to Rs. 1,50,000 in a given year. Deposits may be made in a maximum of 12 transactions throughout a fiscal year. From the third to the sixth fiscal year, loans are offered. Beginning with the seventh fiscal year, there is a partial withdrawal option. After maturity, the account may be extended in blocks of five years.
Suitability to open PPF Account in SBI
- Indian nationals.
- PPF account is prohibited for the HUF and NRI.
- Create a PPF account (For their minor child).
Opening a PPF Account in SBI
- A PPF account is typically simple to start at a bank branch or special post office. To handle all of your accounts with a single bank, if you are an SBI customer, you might choose to register a PPF account with them.
- SBI has announced the debut of a digital solution that allows users to rapidly register a Public Provident Fund (PPF) account online, without using any paper documents, and at any time, around-the-clock.
- Easily open a PPF account via the bank’s digital channels, including Internet and Mobile Banking, at any time and from any location. SBI claims that this bank was among the first in India to offer the instant Public Provident Fund (PPF) account service.
Requirements to Open an Online PPF Account with SBI
You should keep your savings account open with SBI. You ought to have access to Net Banking and Mobile Banking. Your account needs to be connected to your Aadhaar number. To receive your one-time password (OTP), your Aadhar-linked mobile number needs to be active. To promptly e-sign or e-authorize the opening of a PPF account, this is required.
How to Open a PPF Account
You have two options for opening an SBI PPF account: online through SBI net banking or mobile banking, or offline by bank visitation.
How Can I Open an Online PPF Account With SBI?
- Step 1: Go to the SBI portal and enter your login information.
- Step 2: Select “Public Provident Fund” after clicking on “Deposits & Investment.”
- Step 3: Select the option labeled “PPF Account Opening (Without Visiting Branch).”
- Step 4: Go over the basic instructions, agree to the terms, and press “Proceed.”
- Step 5: Click “Proceed” after selecting the account.
- Step 6: Pre-filled account information will be displayed. Click “Submit” after entering the deposit amount, selecting the declarations, and providing the nominee’s information.
- Step 7: Use any online payment method to make the initial deposit.
- Step 8: The account will be created and the PPF account number displayed.
- Step 9: Open the PPF receipt branch, the KYC documents, and a photo under 30 days for completion of the opening process.
How Can I Open an Offline PPF Account With SBI?
- Step 1: Go to the SBI branch where PPF account opening is permitted.
- Step 2: Get Form A, the application for starting a PPF account.
- Step 3: Fill out Form A and submit it together with the required KYC documentation.
- Step 4: Upon opening an account, make the first deposit in cash, demand draft (DD), or check.
- Step 5: The branch employees will open the PPF account and offer the PPF account number.
Documents Needed to Open an SBI PPF Account
- PPF account application
- passport-size photo
- Address Proof
- Form of nomination
- Pan card
Crucial Things to Consider Before Opening a PPF Account
A person is only permitted to open one PPF account under Indian law. The initial deposit amount is Rs. 500, which is the minimum. PPF accounts cannot be opened by NRIs. Whenever necessary, you can visit the closest SBI Bank branch to submit a request for an update or modification to your nomination. To open an online PPF account and obtain the passbook, customers must come to the branch.