How Can I Start A PPF Account With SBI And What Are The Interest Rates?

You might be wondering how to open a PPF account in one of your trusted banks, i.e. State Bank of India (SBI). In this article, we have provided some useful information on the Public Provident Fund (PPF) account and the stepwise procedure to open the account with SBI.

Public Provident Fund (PPF) is a popular long-term investment option scheme. It is backed by the Government of India and also offers attractive interest rates and returns with safety. These returns are fully exempt from Tax under Section 80C of the Income Tax Act. 

Investors can save tax from up to a maximum Rs.1,50,000 in one financial year. Customers can get facilities, such as loans, partial withdrawal, and extension of account. PPF is a good alternative for self-employed people or for those who are from unorganised sectors since EPF/GPF is not available for them.

Opening a PPF Account in SBI

Usually, a PPF account can be easily opened in a designated post office or a bank branch. If you are an SBI customer, you may want to open a PPF account with SBI so you can manage all accounts with one bank. 

SBI  has announced the launch of a digital service that enables customers to open a Public Provident Fund (PPF) account instantly in a completely online and paperless manner at any time, i.e. 24/7.

Open a PPF account conveniently anytime, anywhere, using the bank’s digital channels, Internet and Mobile Banking.  As per SBI’s claim, it is one of the first banks in India to offer instant Public Provident Fund (PPF) account facility.

Prerequisites to Open a PPF Account Online with SBI

• You should hold a savings bank account with SBI.
• You should have Net Banking/Mobile Banking access
• Your Aadhaar number should be linked to your account
• Your mobile number which is linked to your Aadhaar should be active to receive one time password (OTP). This is necessary to e-sign/e-authorise the opening of a PPF account instantly.

Process to Open PPF Account

• Step 1. Visit SBI  portal at www.onlinesbi.com and log in with your credentials.
• Step 2. Click and select ‘New PPF Accounts’ option.
• Step 3. The ‘New PPF Account’ page appears. Customer details, such as name, address, CIF number, and PAN will be displayed.
• Step 4. Click the checkbox if you are opening the account on behalf of a minor.
• Step 5. Enter the bank branch code and branch name of your home branch. Further, enter up to five nominee details based on your choice. Click ‘Submit’.
• Step 6. Once you verify all the details entered, click on ‘Proceed’.
• Step 7. The PPF account will be created and the PPF account number will be displayed. PPF account statements are available on internet banking.
• Step 8. Click on the tab ‘Print PPF Online Application’ to print the account opening form. Visit the branch with the printed form, KYC documents, and a photograph within 30 days to complete the account opening process.

Conclusion

As per the Indian law, an individual is allowed to open only one PPF account. Minimum deposit is Rs.500 as initial deposit amount.
NRIs can not open a PPF account. You can visit the nearest SBI Bank branch and give the request for nomination updating/change whenever required. Customers need to visit the branch to get the passbook for the PPF account opened online.

Also read- 7 Things You Should Be Aware Of When Purchasing A Life Insurance Policy

What Distinguishes ICICI Pru iProtect Smart As The Most Effective Protection Plan?