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

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 unorganized sectors since EPF/GPF is not available for them.

Features Of PPF

• Attractive interest rate of 7.1% p.a. that is fully exempt from income tax under Section 80C of the Income Tax Act.
• Good long-term investment tenure of 15 years.
• Deposit amount can be as low as Rs.500  and a maximum Rs.1,50,000 per financial year.
• Deposits can be done in up to 12 transactions for a financial year.
• Loan can be availed between the third to sixth financial year.
• Partial withdrawal facility is available from the seventh financial year onwards.
• Account can be extended in a block period of 5 years after maturity.

SBI PPF Interest Rate

The PPF account interest rate is uniform across post office and all banks that offer this scheme. Thus, the interest rate of SBI PPF account for 2025 is 7.1% p.a.

Eligibility To Open PPF Account In SBI

• An Indian citizen can open a PPF account. 
• Parents can open a PPF account on behalf of minors.
• Hindu Undivided Family (HUF) and Non-Resident Indians (NRI) cannot open a PPF account.
• An individual can open only one PPF account unless the second account is in the name of a minor. 

Opening PPF Account In SBI

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.

Prerequisites To Open PPF Account Online With SBI

• You should hold a savings bank account with SBI.
• You should have Net Banking/Mobile Banking access
• Your Aadhaar number should be linked to your account
• Your mobile number which is linked to your Aadhaar should be active to receive one time password (OTP). This is necessary to e-sign/e-authorise the opening of a PPF account instantly.

Process To Open PPF Account

You can open SBI PPF account either online by logging into SBI net banking or mobile banking or offline by visiting the bank.

How To Open PPF Account In SBI Online?

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.

How To Open PPF Account In SBI Offline?

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.

Documents Required To Open PPF Account In SBI

• PPF account opening form
• Passport size photo
• Address proof
• Nomination form
• PAN card

PPF Calculator

Find out how much returns you can expect on investing in a PPF account through our easy-to-use PPF caclulator.

How To Deposit Contributions In PPF Account With SBI?

An individual can submit the PPF deposit money through online or offline mode.

Online Deposit

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.

Offline Deposit

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.

Important Points To Note When Opening PPF Account

• As per the Indian law, an individual is allowed to open only one PPF account.
• Minimum deposit is Rs.500 as initial deposit amount.
• NRIs can not open a PPF account.
• You can visit the nearest SBI Bank branch and give the request for nomination updating/change whenever required.
• Customers need to visit the branch to get the passbook for the PPF account opened online. 

SBI PPF Premature Withdrawal Rules

The tenure of SBI PPF account is 15 years. However, premature partial withdrawal of PPF amount is permitted from the 6th year, i.e., on completing 5 years.

A PPF account holder can prematurely withdraw, up to a maximum of 50% of the amount that is in the SBI PPF account at the end of the 4th year. Further, withdrawals can be made only once in a financial year.

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