One of the preferred retirement savings funds by the working class is the Public Provident Fund (PPF). The long-term investment horizon and the magic of compounding may be the key reasons for its popularity along with the income tax exemption available on it.
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.
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.
You can open SBI PPF account either online by logging into SBI net banking or mobile banking or offline by visiting the bank.
Step 1. Visit SBI portal and login with your credentials.
Step 2: Click on ‘Deposits & Investment’ and click the ‘Public Provident Fund (PPF)’ option.
Step 3: Click the ‘PPF Account Opening (Without Visiting Branch)’ option.
Step 4: Read the general instruction, accept the terms and click the ‘Proceed’ button
Step 5: Select the account and click the ‘Proceed’ button.
Step 6: Your account details will be pre-filled. Enter the deposit amount, nominee details, select the declarations and click the ‘Submit; button.
Step 7: Pay the initial deposit amount through any online mode.
Step 8: The PPF account will be created and the PPF account number will be displayed. PPF account statements are available on internet banking.
Step 9: Visit the branch with the PPF receipt, KYC documents, and a photograph within 30 days to complete the account opening process.
Step 1: Visit the SBI branch authorised to open PPF accounts.
Step 2: Get the PPF account opening form (Form A).
Step 3: Fill and submit Form A along with the required KYC documents.
Step 4: Deposit the initial deposit amount in cash, Demand Draft (DD) or cheque at the time of account opening.
Step 5: The branch officers will open the PPF account and give the PPF account number.
Find out how much returns you can expect on investing in a PPF account through our easy-to-use PPF caclulator.
An individual can submit the PPF deposit money through online or offline mode.
SBI allows customers to deposit cash in their PPF accounts through online banking. They can log in to their SBI online banking account and make a fund transfer by entering the PPF number to which cash transfer should be made. The payee name should be the same as the one mentioned in the PPF account. Online transfers to PPF accounts can also be made through ECS, NEFT, or standing instruction.
Individuals can deposit in PPF accounts offline by visiting the SBI bank branch. The deposits can be made through cash, or by filling in a demand draft or by depositing an account payee cheque.
You must submit Form C at the SBI branch where the account exists to close your PPF account. Provide all details, including your PPF account number, the reason for the closure and details of the bank where you want the amount to be credited in the Form. After thorough verification, SBI will process your account closure request. The entire amount in your PPF account will be sent to the account you have mentioned on Form C.
However, as per the rules governing PPF accounts, you can withdraw your entire PPF account balance only after the account completes its tenure of 15 years. Thus, you can close your PPF account only upon completion of the 15-year term. However, premature withdrawal of up to 50% of the PPF account balance is allowed after completing 6 years. This is permitted under special circumstances only.
Yes, you can transfer your PPF account from SBI to any other bank or post office. Here is the procedure:
Below is the process to view the PPF account passbook online:
Below is the process to get the PPF account passbook offline:
You can check the account balance online or offline.
In order to reactivate an inactive PPF account, you can follow the steps below:
Step 1: Submit a written letter requesting to reactivate PPF account to the SBI bank branch where you have opened your PPF account.
Step 2: Pay a minimum amount of Rs.500 for each year you have not made any contributions along with the penalty of Rs.50 per inactive year.
Step 3: The bank will process your request and reactivate the PPF account.
When you do not make the minimum contributions/deposits for one year to your PPF account, it will become inoperative. You can activate your account only after making the minimum contribution along with the penalty.
Step 1: Fill in Form C with relevant details. You can download this from your bank or Post Office website or get the form at the branch.
Step 2: Submit the form to the bank or Post Office branch where your PPF account is held.
There is no need to link a PPF account held with SBI to an SBI savings account. At the time of opening the PPF account, either online or offline, you will have provided your existing savings account number held with the bank. This means, your new PPF account is created under the existing customer ID. By default, your PPF account will be linked to your savings account. Therefore, you can use the same login credentials for internet banking and access both your savings account and PPF account details under a single platform.
When you open a PPF account offline, the bank or Post Office will provide you with a passbook. The passbook contains all the necessary information about the PPF account, such as the PPF account number, bank/PO branch details, account balance, transactions made in the account, and others. You can get the passbook updated regularly to access the latest data.
On the other hand, you can log into your account on the internet banking portal. On the home page, choose the PPF account to see the account details, such as the account number, account balance, recent transactions, and others.
Step 1: Get an application form from your nearest post office or online.
Step 2: Fill up the form and submit it with the required KYC documents and passport size photograph.
Step 3: Make the initial deposit required to open a post office PPF account. The amount can range from Rs.500 up to Rs.1.5 lakh per financial year.
Step 4: Once your application is processed, a passbook will be given to you for the PPF account opened.
A PPF account can be extended in the blocks of five years any number of times upon the maturity of the account after 15 years from the date of opening the account.
PPF accounts are offered by the Government of India and are not specific to a bank. Also, all banks provide the same set of features and benefits when you open a PPF account. The interest rate is set by the government and it remains the same wherever the PPF account is held. Therefore, there is no best bank that offers a PPF account.
There is no specific due date as to when you should deposit money in a PPF account. However, it is beneficial for you to deposit money between 1 April and 5 April of a financial year. If it is not possible for you to make the full year’s deposit at the beginning of the year, you can make monthly deposits within the 5th of the month to earn maximum benefits.
A PPF account can be extended any number of times without any restrictions.
An individual can open only one PPF account across the country either in a bank or Post Office.
When a minor PPF account holder becomes a major or turns 18 years old, you can submit a revised application form with necessary documents to change the status of the account from minor to major. The guardian can submit the application along with the account holder’s signature on the application form as an attestation.
The minimum lock-in period for a PPF account is 15 years, the actual tenure of the PPF account.