A PPF account with SBI can help you to secure your financial future. One of the most well-liked methods for saving money so that you can live a prosperous life is to open a PPF account with SBI. It is regarded by many as one of the greatest retirement options.
How to open an SBI PPF account?
An SBI PPF account can be opened through both online and offline modes. Here’s how.
Offline procedure
- Visit an SBI branch closest to you, which is permitted to open PPF accounts for its account holders.
- The PPF account opening form (Form A), which is accessible at the branch, must be completed, signed, and submitted. When submitting the form, be sure to include the necessary KYC documents and photos as well.
- When opening an account, a cash or check deposit of at least Rs 500 (according to the current rates, which must be confirmed at the time of deposit again) is required.
Online procedure
- Go to the State Bank of India – Personal Banking (onlinesbi.sbi) website.
- Utilise your unique net banking credentials to log in.
- Under In the top right corner, select the “Request and inquiries” tab.
- From the drop-down menu, choose New PPF Accounts.
- “New PPF Account” page is displayed. The customer’s name, address, CIF number, and PAN will all be visible.
- Tick the box if you are opening the account on behalf of a minor.
- Enter the bank branch code and branch name for your home branch. Additionally, according to your preferences, you may offer up to five nominee details.
- Select “Submit” from the menu.
- After verifying every piece of information, click “Proceed.”
- A dialogue box stating “Your form has been successfully submitted” will appear. A reference number will also be printed on it.
Get the form with the assigned reference number by downloading it.
The “Print PPF Online Application” button allows you to print the account opening form. Within 30 days, turn in the form to the branch together with your KYC paperwork and a photo.
An application reference number for the Form A will be generated once it is submitted. The assigned reference number will remain in effect for 30 days, following the date of submission before being erased. Therefore, you must print the account opening form from the “Print PPF Online Application” button and visit the bank within 30 days with your KYC credentials and a photo.
SBI PPF interest rates
All banks and post offices that take part in the scheme offer the same interest rate on PPF accounts. SBI PPF interest rate for the second quarter of FY 2022–23 (July–September) has been set at 7.1%. The minimum balance retained in the account from the fifth day of the month until the end is used to compute interest every March 31.
SBI PPF account: Documents required
The list of documents that you must have to register an SBI PPF account online is as follows:
- The savings account must be connected to a savings bank account with an SBI Aadhaar number.
- You must be able to use online or mobile banking.
- An active mobile number must be connected to the PPF account.
- The mobile number provided during account registration will receive an OTP.
Within the next 30 days, you should bring the following documentation with you when you visit the branch:
- PPF Account Opening Form (Form A) duly completed and signed a completed online form with passport-size photos.
- Identity documents such as Aadhaar, PAN, a driver’s licence, a voter ID, etc. that have been self-attested.
- Address Verification Documents: Electricity Bill, Passport, and Aadhaar Card.
SBI PPF account: Eligibility
Although it is simple to open a PPF account, there are some eligibility requirements. The following qualifications must be met in order to open a PPF account:
- A resident of India may open a PPF account in their own name. In SBI, there is no upper age limit for opening a PPF account.
- Indian residents who reside in the country can open PPF accounts for minors on their behalf.
- For a minor child, only the mother or the father can open a PPF account. However, both the mother nor the father are permitted to open an account at the same time on the child’s behalf.
- It is not permitted for grandparents to open an account on behalf of their young grandkids. However, the grandparents can set up an account as guardians if the child’s mother or father passes away.
- An individual may only open one account in his or her name. However, a minor’s name can be used to open an account.
- HUFs (Hindu Undivided Families) cannot open an account.
SBI PPF account: Points to remember
- There is a 15-year lock-in period for PPF accounts. However, the account holder may decide to extend the period for an additional five years.
- Any branch allows customers to open an account in their own name, the name of a juvenile, or the name of a person who is mentally incompetent.
- SBI PPF interest rate is subject to change every quarter.
- Based on the account’s age and balance as of the specified dates, loans and withdrawals are permitted.
- The account may be moved to different branches, banks, or post offices at the request of the subscriber, and vice versa. The service is excellent.
SBI PPF account: Features
- A minimum of Rs. 500 must be deposited each year to maintain an SBI PPF account in good standing.
- The SBI PPF account’s annual maximum investment is Rs. 1.5 lakh.
- PPF Deposits may be made both in one lump sum and through a maximum of 12 monthly instalments per year.
- Deposits into SBI PPF accounts can be made both online (using mobile or internet banking) and offline (using checks or cash).
- In order to nominate a family member for a PPF account when opening one, you are permitted to enter their information. The nominee’s information can always be modified in the future.
- Loans are available from the third to the sixth fiscal year.
- Starting with the sixth fiscal year, a partial withdrawal capability is offered.
- After maturity, an account may be extended for a block of five years.
- An attractive SBI PPF interest rate of 7.1% p.a. permits a tax-free interest rate under Section 80C of the Income Tax Act.
How to make a deposit in an SBI PPF account?
SBI Public Provident Fund Account accepts deposits both online (via internet or mobile banking) and offline (by cash or cheque deposit). The important information about the possible modes is as follows:
- After connecting your SBI savings/current account and PPF account through internet banking, you can make the payment online.
- ECS, NEFT, and standing instructions are other methods of making online transfers to PPF accounts.
- Cash, checks, or draughts can be used to make offline PPF deposits.
How to check SBI PPF account balance?
Online
- After logging into your banking account via net banking or mobile banking, you can check the balance of your PPF account online.
- You must first link your SBI savings/current account to your SBI PPF account and activate internet/mobile banking in order to see the balance of your SBI Public Provident Fund account online.
Offline
- You only need to update your SBI PPF account passbook to be able to see your PPF account balance offline. It will include all current credits and debits made to your account.See also: Know about SBI IFSC code
How to download SBI PPF account statement?
To download your SBI PPF account e-statements online, follow these steps:
- Access SBI internet banking by logging in with your credentials.
- Navigate to the PPF account section or statements section.
- Look for the option to download e-statements for your PPF account.
- Select the desired date range or specific statement you want to download.
- Confirm the download and save the e-statement to your device.
- Open the downloaded e-statement to view all the debits and credits made to your SBI PPF account.
SBI PPF account: Premature withdrawal rules?
Premature withdrawal from a PPF account is only permitted after the completion of five financial years from the date of opening. However, there are specific circumstances under which premature withdrawal is allowed:
- Medical treatment: If the account holder, their parents, children, or spouse require the funds for the treatment of life-threatening diseases, premature withdrawal is allowed. However, it is necessary to provide relevant documents from a competent medical authority supporting the need for the funds.
- Higher education: In the case of higher education expenses of the account holder or the minor account holder, premature withdrawal is permitted. However, it is mandatory to submit documents such as proof of admission and fee bills from a recognized university.
These circumstances provide exceptions for premature withdrawal from a PPF account, but the necessary documentation must be submitted to avail of this facility.
How to withdraw money from SBI PPF account?
To withdraw funds from your PPF account at SBI, you need to follow these steps:
- Eligibility: Ensure that at least five years have passed since the end of the year in which you made the first subscription to your PPF account. Withdrawals can be made annually after this period.
- PPF Form-2: Complete the PPF Form-2, which is available online or at selected SBI PPF branches. This form is necessary to initiate the withdrawal process from your SBI PPF account.
- Withdrawal limit: The maximum amount you can withdraw is determined by two factors: It is either 50% of the balance in your SBI PPF account at the end of the fourth year immediately preceding the year of withdrawal, or it is the balance in your PPF account at the end of the preceding year, whichever amount is lesser.
Loans against SBI PPF account
The investor has the option to borrow money using their SBI PPF account. The most important details regarding these loans are as follows:
- Form D must be completed by the investor in order to request a loan against their PPF account.
- When a PPF account has been open for three years, but no more than six, it qualifies for a loan.
- The investor may borrow up to 25% of the account amount that will be available at the end of the second year against the PPF account.
- The investor may get a few loans against the PPF account, subject to any current rules of the bank.
- As a result, for a PPF rate of 7.1 percent, the interest rate on a loan secured by a PPF would be 9.1 percent because the loan’s interest rate is 2 percent higher than the applicable PPF rate. The current interest rate for loans secured by PPF is 1% yearly, down from the 2% annual rate that was previously applied to such loans, and is effective for loans taken out on or after December 12, 2019.
From the sixth year onward, or at the end of the fifth year measured from the account opening date, partial withdrawals of PPF balance are also permitted, subject to a few important rules and conditions. The most you are permitted to withdraw is equivalent to 50% of the total amount deposited into your PPF account at any given moment.
Process of SBI PPF account transfer
You can move your PPF account between SBI branches as well as to and from other banks and post offices. Key recommendations for the SBI PPF account transfer process include the following:
- To transfer your PPF account, you must first file an application to your present SBI PPF account branch.
- Important information in your application must include your existing PPF account number and branch as well as information about the bank or post office where you wish to transfer your account.
- You must next go to the new bank branch or post office with your original KYC documents to have your information validated and to activate your new PPF account with the new branch, bank, or post office.
- Your essential documents will be sent to the new bank branch/post office you are transferring your account to by your current bank branch once the PPF account transfer’s approval is done. PPF
- Furthermore, you should also include the passbook for your active PPF account with your application.
Also read about : PF login
FAQS
Can we open an PPF account online?
Yes, We can. We can open a PPF account both online and offline.
If an Indian opened a PPF account as a resident of India, may they keep it open now that they are not residents?
A previous Ministry of Finance regulation stated that the PPF account would be regarded as closed once an Indian resident became an NRI. A new government regulation from 23 February 2018 allows NRIs to maintain PPF accounts, nonetheless.
Can PPF investors use their money as loan collateral?
Subscribers may borrow money against their PPF accounts between the third and sixth financial years after the account was opened.
Who can open a PPF account?
Any adult resident of India can open an account. They can also open an account on behalf of a minor or adult with an unstable mind.
Is it possible for someone to open more than one Public Provident Fund account in their name?
One PPF account may be opened per person. However, the person is permitted to register a different account in the name of a person who is under 18 years old.
Can we transfer our PPF account to another bank? How?
Yes, it can be transferred by submitting an application with required documents.
Is it possible to use SBI internet banking to access the PPF account?
Yes, you can use SBI internet banking to access your PPF account. With the aid of internet banking, subscribers will also be able to access their PPF account statement and transfer money to the PPF account.
What occurs if I fail to credit an SBI PPF account for a fiscal year?
Your PPF account will expire if the necessary minimum contributions are not made during a fiscal year. Until you have made the necessary minimum donation and paid the fine, you won't be able to activate your account.
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