Public Provident Fund (PPF) is a popular long-term investment scheme.Every bank has PPF scheme with a little bit different in interest.Now before choosing any bank for opening a PPF account you have to look for any safe and secure bank where your money will be in safe.Except bank you may also open a PPF account in Post Office also.Now look at the easy steps to open a PPF account in SBI.
As SBI is a large and safe bank so many people wants to open PPF account is SBI.Here we will describe the details process step by step for opening a PPF account in State Bank of India (SBI). In SBI you can open account offline and online also.
Easy Steps to Open a PPF Account in SBI (Offline )
- Choosing Branch: Firstly choose the branch where you want to open a PPF account.SBI has tool named SBI Branch Locator from where you can easily chose your nearest branch.I suggest you to chose you nearest branch in the city/village where you placed for a long time.It will help you to operate PPF account easily and also you can solve any problem easily by visiting the branch.In case of online application you need internet banking.
- Collecting PPF Form : By visiting branch you have to ask for PPF account opening form.They will provide you a form where you have to write your saving account number,PAN No,Your Name,Date of Birth (In case of Minor) ,the amount whatever you will deposit at the time of account opening.You can also Download PPF account opening form here.
- Required Documents : You need to check whatever documents required for opening an account.Generally two types of documents required for account opening 1. Photo Identity Proof 2. Address Proof . In photo identity proof you may submit Voter Card,Driving License,Passport,Bank Passbook,Aadhar Card and for address proof you may submit Ration Card,Voter Card,Driving License,Passport,Bank Passbook,Aadhar Card .
- Checklist before Submission : You need to check the following details before submitting your application form –
- Deposit Amount : Deposit amount should be minimum Rs 500 /- (Per Year) & maximum of Rs. 150000 /- .Amount can be deposit in a single deposit or may be maximum 12 installment in a year.You can deposit money in cash or cheque.
- Investment Duration : Minimum investment period of PPF is 15 years.But you can extend it for more 5 years by submitting an application to bank.
- Interest Rate : At present rate of interest is
8.70%8.10 % (w.e.f. : 01.04.2016) per annually in SBI PPF scheme.Interest paid on 31st March of every year.Interest is compound interest.
- Income Tax Benefit : As per Income Tax act under section 88 total amount including interest and matured amount are tax exempted.
- Loan against Deposit Amount : There is a facility of loan against balance amount on PPF account but loan amount totally depend on your age of investment (Mean from how many days you are investing your money on the PPF account)
- Other Benefits : Except all the above benefit there is also benefit of nomination,account transfer ,joint account etc. available on SBI PPF account.
The above process was for offline application of PPF account.There is also a option for online application of PPF account in SBI.