SBI PPF Account: Everything You Need to Know

The Public Provident Fund Scheme has been a popular tool for creating a retirement corpus for decades. The key reasons why millions of Indians have opted for this scheme are the risk-free nature of the deposit and its tax-free returns. Among the numerous public and private sector banks that provide the PPF facility, the SBI Public Provident Fund account is currently one of the most popular choices.

How to Open a PPF Account in SBI Online?

SBI currently allows you to partially complete the PPF account opening process online. The online SBI PPF account opening system is at present available only to existing savings/current account holders. The following are key steps in the SBI PPF account opening process:

Step 1: Log in to your SBI net banking or mobile banking account using the respective banking credentials

Step 2: Navigate to the “New PPF Account” link located under the “Requests & Enquiries” menu

Step 3: On the next screen, you will see a PPF form that needs to be filled

Step 4: After filling out the online PPF form, you will be provided with a reference number and a link to download and print the online filled out form

Step 5: Now, you need to sign the applicable pages and visit your chosen SBI PPF account branch with self-attested copies of applicable KYC documents (PAN, Aadhaar, etc.) and passport size photographs to complete the account opening process

The minimum initial account deposit amount of Rs. 500 also needs to be paid in cash/cheque at the time of account opening.

Once your PPF account with SBI is up and running, you will receive an SBI PPF account passbook which details all credits and debits to the account and also contains key details such as PPF account number and branch code.

How To Open A PPF Account In SBI By Visiting The Bank?

Follow the given steps to open your PPF account in SBI:

Step 1: Visit any SBI branch which is authorized to open PPF accounts for its account-holders

Step 2: Fill, sign, and submit the PPF account opening form- Form A, which is available at the branch. Also, attach the applicable KYC documents and photographs along with the form

Step 3: The minimum initial deposit amount of Rs.500 needs to be paid in cash/cheque at the time of account opening

PPF Interest Rates 2021

The PPF account interest rate is uniform across all banks and post offices operating the scheme. The SBI PPF account interest rate is subject to change every quarter as per announcements made by the Ministry of Finance. For Q2 of (July-September) FY 2021-22, the PPF interest rate has been fixed at 7.1% per annum.

Eligibility to Open PPF Account in SBI

Opening a PPF account is easy but there are certain conditions for eligibility. The eligibility criteria for opening a PPF account is as follows:

• An individual who is an Indian resident can open a PPF account in his/her name. There is no maximum age limit for opening a PPF Account in SBI
• Hindu Undivided Family cannot open a PPF account
• Non-resident Indians (NRIs) cannot open a PPF Account
• PPF accounts can be opened in the name of the minor by a parent/guardian. Only one such minor account is allowed per child
• Currently, a new PPF account can be opened at designated branches of the State Bank of India.

Features of SBI Public Provident Fund Account

Some of the key features and benefits of the Public Provident Fund Scheme are mentioned here:

• Minimum annual investment required to keep an SBI PPF account active is Rs. 500
• Maximum investment allowed in the SBI PPF account is Rs. 1.5 lakhs annually
• PPF Deposits can be made in a lump sum as well as through a maximum of 12 installments annually
• SBI PPF account deposits can be made both via the online route (mobile/internet banking) as well as an offline route (cheque/cash)
• If you open a PPF Account, you are allowed to provide details of a family member as a nominee for a PPF account at the time of opening the account. The nominee details can be updated at any time in the future

Documents Required

The following is a list of documents that you require for opening an SBI PPF account:

• Duly filled PPF Account opening form (Form A)/Signed Printout of Form A filled online
• Passport Size Photographs
• Self-attested copies of identity proof – Aadhaar, PAN, Driving License, Voter ID, etc
• Address Proof – Passport, Aadhaar Card, Electricity Bill, etc.

How to Check PPF Balance in SBI?

SBI allows you to check your PPF account balance as well as all account debits/credits through various online and offline routes. The following are some key pointers regarding checking your SBI PPF balance :

• In order to check your SBI Public Provident Fund account balance online, you need to first link your SBI savings/current account with your SBI PPF account and get internet/mobile banking activated
• You can then log into your banking account online using net banking or mobile banking credentials to check your PPF account balance online
• To check your PPF account balance offline, all you need to do is get your SBI PPF account passbook updated. It will contain all applicable credits/debits of your account till date

Key Points To Keep In Mind While Investing In SBI PPF

The following are some key points to remember when investing in SBI PPF :

• It is important to have a nominee to your SBI Public Provident Fund account. You can change/add nominees at a later date too
• Currently, the facility of making online payments into PPF accounts is restricted to accounts held with a bank
• New PPF account cannot be opened by an NRI, but in case a resident becomes NRI prior to maturity of the account, such an SBI PPF account can be held till maturity without the option of extension

Conclusion

To close the PPF account in SBI, you need to submit a written application at the branch where your account is held. If you are applying for premature closure of the PPF account, mention the appropriate reason for the same in the application. Along with that, you need to submit a copy of your PPF passbook and other documents to support your application.

Do read - Long-Term Investment Plans in India