A detailed guide on SBI Public Provident Fund (PPF)
A public provident fund, shortly known as PPF, is an investment scheme offered by the Government of India. It is one of the best investment options available for people who want to generate more income with optimal returns. Nowadays, many banks offer a PPF scheme for customers in the markets to focus more on financial goals effectively. However, it is wise to compare them before investing money. Moreover, they provide ways to choose the right one which caters to their needs. PPF is the right choice for those who are looking for long-term investments.
While opening a PPF account, one should understand the features and benefits in detail that will help make the right decision. Apart from that, it enables investors to meet exact needs in financial planning. Therefore, it is wise to know everything, including the eligibility, documents, and the opening process from different sources. SBI PPF account is a plan available from the SBI bank that provides several advantages to investors. The scheme makes feasible ways to ensure financial stability in life that will help manage difficult situations with ease.
SBI PPF Scheme Features
- Investors can deposit a minimum of Rs. 500 in an SBI PPF account and a maximum amount of Rs.1.5 lakhs in a year.
- The duration of the plan is 15 years, and one can extend the plan based on his/her choices.
- The Indian Government will determine the interest rates every year, and the present interest rate is 8.0%.
- Tax benefits are available for customers under section 88 of the income tax act.
- Facility to transfer one branch to another branch in India.
- Subscribers can even appoint one or two more persons as nominees.
- SBI will calculate the interest rate based on the minimum balance payment in the account from the 5th day and the month-end
- Investors can avail of loans as per the terms and conditions SBI PPF account that will help receive money during emergencies.
- Premature payment is available for investors on completion of the five fiscal years of the account.
SBI PPF Account Eligibility Criteria
- Anyone who is a resident of India is eligible to open the account and also behalf of minors in any SBI branch.
- Individuals can maintain only one account and handle another account on behalf of the same minor.
- A Hindu undivided family is not able to open an account.
- Both parents are not eligible to open separate PPF accounts on behalf of the minor.
- Grandparents can act as a guardian for a minor grand-child who lost both parents.
- The subscribers should have an SBI account linked with the Aadhaar card, email id, and mobile phone number.
How to calculate the returns and maturity of SBI PPF?
Investors who want to calculate the returns and maturity of the PPF scheme offered by the SBI bank should use the online calculator. SBI PPF calculator allows customers to calculate the returns and the growth of contributions accurately. It provides ways to choose the right investment amount depending on the needs. Moreover, the calculator will display the total amount received by investors after the account matures. A person should select the investment amount per year from the drop-down and he/she must move the slider to fix the number of years. The online calculator is a simple and straightforward tool that gives ways to save more time.
How to open an SBI PPF account online?
Here are some steps to follow while opening an account online.
- Subscribers should have SBI internet banking to open the account.
- One should go to the ‘Request & Enquiries’ option and click on the ‘New PPF Account’ option.
- The page will redirect to the ‘New PPF Account ‘page and fill in certain details such as name, address, PAN, and CIF number.
- A person should enter his/her SBI account number and nomination details which he/she would like to contribute to the PPF account.
- The next step is to submit the details by pressing the ‘submit’ option.
- A reference number will be sent to a subscriber’s mobile phone after submitting the valid information for 30 days.
- SBI account-holders can download the SBI PPF account opening form and take the same to the nearest branch with the required KYC documents.
How to deposit money in an SBI PPF account?
Subscribers can choose both offline and online mode payments based on their choices. It is possible to make SBI PPF online payment easily that will save more time. Subscribers should log in to their SBI online banking account by using the credentials. They should also enter their PPF account number while depositing the amount. Apart from that, account holders should ensure that the details of the payee name are the same in both accounts.
Knowing the SBI PPF account withdrawal process
Subscribers should know the rules of the SBI PPF account withdrawal process from the bank authorities. They can withdraw the amount after 5 years, excluding the year of account opening. It is possible to withdraw 50% of the balance at the end of the 4th preceding year.
How to open an SBI PPF account offline?
SBI account holders who don’t have internet banking can visit the nearest SBI branch to know more details. The first thing is that they should collect Form A and submit the same with the required KYC documents. Some of the documents needed for opening a PPF account include address proof, id proof, and a passport size photograph.
Things to do before opening an SBI PPF account
Customers should know what PPF accounts from different sources will help gain more ideas is. Also, it is wise for them to calculate SBI PPF account interest rate online before opening an account. PPF is a low-risk investment plan available for those who want to earn maximum returns. At the same time, it is necessary to know how to open a PPF account in SBI that will help accomplish goals to a large account. Customers should also follow the instructions properly while opening an account online, which gives ways to reduce the complications.