SBI PPF Account – Features & Benefits

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The State Bank of India is known as the most popular public sector bank of India. This bank is officially licensed by the Reserve Bank of India. The bank provides a wide number of the products and services for the benefit of the people. One such service is the Public Provident Fund or the PPF. The Public Provident Fund is one of the schemes that is introduced by the National Savings Organization in the year 1968. The aim of the organization via this scheme is to enhance the saving habit of the citizens. The PPF scheme of SBI offers a quite decent returns on the money and also an interest free-return amount. Since, SBI is known as one of the trusted banks of India therefore you can get an assurance of safety with the SBI PF Scheme.

Earlier, the PPF Schemes were available only through the Post Offices. But now, a number of banks have been associated with the PPF Scheme. The PPF account handling is much easier in the banks rather than the Post Offices. It is because the deposit of the cash can be done online.

How to Avail SBI PPF Scheme

To open a PPF account in the SBI Bank, you need to fill in the PPF Form and submit it along with the required mentioned documents. Not all the SBI Branches provides the account opening facility. Therefore you need to search for the nearest SBI Bank Branch that provides the account opening facility. Once the PPF PDF Form is dully filled and the relevant documents are submitted, then your PPF account is created by the bank. The account will keep all the information regarding the PPF transactions and much more.

Documents Required to Open a SBI PPF Account

The documents that are required for opening a SBI PPF Account are as follows:

  • Duly Filled PPF Account Form
  • Proof of Identity- Driving License, PAN Card, Passport and Voter ID.
  • Proof of Residence or Current Address Proof
  • Passport Size Photographs

The SBI mainly says to self-attest your document photocopies and carry the original documents for cross-verification during the account opening.

SBI PPF Account Opening Form

The SBI PPF Account Form is a very brief and simple form. It requires the customers to fill in some basic details like:

  • Name
  • Initial Amount of the Deposit
  • Signed Declaration of the PPF Account Opening
  • Details of all the SBI PPF Account held by the customer till date.
  • Signature of the customer to signify the compliance to all the regulations that drive the PPF Scheme.

SBI PPF Account Rules and Guidelines

There are a certain numbers of guidelines and rules to follow while opening a SBI PPF Account. These rules and regulations are made to make the customers aware of the various aspects related to the SBI PPF Account.

  • Duration of the SBI PPF Scheme: The SBI offers an initial duration of 15 years, after which the customers can request in extensions in blocks of 5 years. One or more such 5 year blocks can be requested by the customers.
  • Eligibility Criteria to Avail SBI PPF Scheme: To avail a SBI PPF Account, the individual should be an Indian and can open an account in the name of his/hers otherwise in the name of the minors.
  • Investment Limit of the SBI PPF Account: The minimum investment fee is Rs 500/- per annum and the maximum investment fee is Rs 1500/- per annum. If any amount is higher than Rs 1, 50,000/- then you cannot earn neither earn an interest nor any tax rebate and hence it should not be invested. The amount deposited in the PPF Account can neither be deposited via single payment or via twelve installments per year.

The Features and Benefits of SBI PPF Account

The SBI PPF Account provides a wide variety of features and benefits:

  • Nomination Facility

The SBI PPF Scheme offers a Nomination Facility to the customers. This nomination can be made in terms of the number of PPF Shares too.

  • Tax Benefits Applicable on SBI PPF Scheme

The SBI PPF scheme provides a heavy tax benefit. It is because, the interest earned is total exempted from the income tax under the section of 88 of the Income Tax Act. The outstanding PPF amount is totally exempted from the wealth tax payment. These tax benefits make the PPF saving scheme one of the best savings tools.

  • Loans and Withdrawals

Loans from the SBI account against the SBI PPF account is permitted. The SBI PPF Accounts also accept the partial withdrawals. However, the loan amount and the amount of the Partial withdrawal is a subject to the age of the PPF Account and to the PPF Balance on any given date. Loans and Withdrawals are basically under the sole discretion of the bank.

  • Transfer of the SBI PPF Account

You can transfer the SBI PPF Account to any other bank or to any other SBI Branch. You can also transfer your account to the Post Office. The transfer of the SBI PPF Account is completely free. It does not charge anything.

Interest Rate on the SBI PPF Scheme

The SBI offers an attractive interest rate for the PPF account holders. The SBI PPF Account holds an interest rate of 8.7% per annum and the returns earned are completely tax-free. The SBI pays the full interest amount on March 31st. The applicable interest amount is calculated on the minimum balance between the 5th and the last day of the month.

SBI PPF Calculator

The SBI PPF calculator is a great tool for calculating the PPF Transactions and calculations. This tool not only helps in the calculations but also helps in planning your PPF investment. The calculator performs monthly and yearly investment calculations that you want to make and also the applicable rate of interest and then computes the interest paid over 15 years of the deposit period. This tool helps to determine the exact amount of return that they will receive in the investment if the rate of the interest does not charge.

How to deposit the Money in your SBI PPF Account

You can deposit money in the SBI PPF Account in two ways: through offline and online method. In the online method you can transfer it online and another method is to visit any SBI Bank branch and make the deposit.

Online Deposit of Cash

The SBI allows the customer to deposit their cash in the PPF Account through online using the Internet Banking. All you have to do is login to the SBI online banking account and perform the fund transfer. The fund transfer process is very much similar to that of the normal bank transfer. You are required to enter your PPF number as the account number to which the cash is transferred. The name of the payee should be exactly the same as that mentioned in the SBI PPF Account.

Offline Deposit of Cash

You can also deposit your cash in the SBI PPF Account offline, by visiting any of the SBI Bank Branch. Transferring the fund offline can be either done by the filling in a pay-slip or by depositing an account payee cheque.

How to Transfer your PPF Account from the Post- Office to SBI

To transfer the account from the PPF Account to the Post Office or the vice-versa is a very simple process. The only thing to do is to send a request of transfer, either to the bank or the post office. You need to submit a transfer request form along with the form SB-10b to the Post Office. You also need to submit an Identity Proof to the Post Master. Then the transfer request along with the documents will be verified and reviewed by the Post Master. The Post Master will then submit the documents and the application form to the SBI Branch. A cheque or a demand draft of your PF account is also sent to the SBI bank Branch.

Once the documents are revived by the SBI Bank, the bank will ask you submit a fresh PPF Account opening form along with the required KYC documents. The bank will review your documents and open your PPF account. A new passbook issued by the SBI Bank will not have any data of your old PPF Transactions details at the Post Office and will only have the details of the PPF Transactions carried out at SBI.

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