1. Public Provident Fund
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 rate and returns with safety. These returns are fully exempt from Tax under Section 80C of the Income Tax Act. Investors can save tax from Rs. 500 to a maximum Rs. 1,50,000 in one financial year, and can get facilities such as loan, withdrawal, and extension of account.
PPF is a good alternative for self-employed people, or for those who are from unorganized sectors since EPF/GPF is not available for them.
2. Product Features of PPF
- Attractive interest rate of 7.6% that is fully exempted from Income Tax under section 80C
- Good long-term investments of 15 years
- Deposit Amount as low as Rs.500 and maximum Rs.1,50,000 in one financial year
- Deposits can be done in a maximum of 12 transactions
- Loan can be availed between 3rd to 6th financial year
- Partial withdrawal facility can be availed from 7th financial year onwards
- Account can be extended in a block period of 5 years after maturity
3. Opening a PPF Account
Usually, PPF account can be easily opened in a designated post office or a bank branch. However, if you are an SBI Bank customer, opening a PPF account is an extremely easy task that can be completed in a few minutes without any hassle. SBI customers can now open a PPF account online anytime, 24X7. 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.
An SBI Bank customer has the option of opening a PPF account conveniently anytime, anywhere, using the bank’s digital channels of the internet and mobile banking/Mobile App. As per SBI’s claim, it is one of the first banks in India to offer instant Public Provident Fund (PPF) account facility.
4. Opening a PPF Account Online
Here is what you need as prerequisites in order to open an instant PPF need account online with SBI:
- You should hold a Savings Bank account with SBI
- You should have net-banking/Mobile banking enabled for your account
- Your ‘Aadhaar’ number should be linked to your account
- Your mobile number which is linked to your Aadhaar should be inactive status, to receive OTP (one time password) which is used to e-sign/e-authorize opening of 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. You will be redirected to the ‘New PPF Account’ page on the SBI portal. Existing customer details including his or her PAN (Permanent Account Number) are displayed on this page.
Step 4. Enter bank account number from which you would like to contribute to PPF account and PAN number. Provide bank branch details. Once you enter the branch code and proceed to the next field, the portal automatically displays the respective branch name.
Step 5. Your personal details need to be verified. These might include address and nomination data. Once verified, click on ‘Proceed’.
Step 6. Once you do this, your PPF account will be created in a few seconds and the account number of PPF is displayed. It must be noted that the statement of the transaction, as well as the annual statement of the PPF account, is available on internet banking.
Step 7. Print the account opening form from the tab ‘Print PPF Online Application’ and visit the branch with KYC documents and a photograph within 30 days.
5. Important Points to Note When Opening a PPF Account
- As per the Indian law, an individual is allowed to open only one PPF account in his/her name.
- Minimum deposit is Rs 100 as initial deposit amount.
- A PPF account for Minors can’t be opened online. You need to visit any of the SBI Bank branches.
- NRIs can not open a PPF account.
- You can visit the nearest SBI Bank branch and give the request for nomination updating /change (if required).
- Joint-account holders cannot open a PPF account online.
- Customer needs to visit the branch to get the passbook for a PPF account.