State Bank of India (SBI) PPF Account
State Bank of India is the most popular public sector bank in India. Public Provident Fund or PPF is one of the schemes introduced by National Savings Organization in the year 1968. The aim of the organization via this scheme was to inculcate the habit of saving in the citizens of the country. The PPF scheme from SBI offers decent returns on the money saved and also an interest-free return amount. Since, SBI is one of the most trusted names in the Indian banking industry hence the assurance of safety comes along too with the SBI PPF scheme.
Earlier PPF schemes could only be obtained through post offices, however, a number of authorized banks are now entitled to open PPF accounts for customers. PPF account handling is easier in banks than post offices since deposit of cash can be done online whereas post offices do not provide online cash deposit facility.
How to avail SBI PPF scheme
PPF account opening in SBI requires a PPF form to be filled and submitted along with some other documents required by the bank. Not all SBI branches offer PPF account opening facility and hence you are required to find out your nearest SBI branch that does. Once the duly filled PPF form and relevant documents are submitted your PPF account will be opened by the bank. A PPF passbook is furnished to you by the bank; this contains information regarding all your PPF transactions.
All Indian citizens can apply for PPF scheme either in their own name or on behalf of minors. Hindu undivided families cannot apply for a single PPF scheme in their name.
Documents required to open SBI PPF Account
Certain documents need to be submitted to the bank for PPF account opening. These documents should accompany a duly filled PPF account opening form. The list of these documents is mentioned below.
- Duly filled PPF account opening form
- Proof of identity. For example, driving license, PAN card, passport, voter’s id
- Proof of residence or current address proof
- Couple of passport size photographs
Mostly, SBI requires you to self-attest these documents and to carry the original documents for cross-verification during account opening.
SBI PPF account opening form
SBI PPF account opening form is a very short and simple form which requires customers to fill in some basic details like –
- Initial amount of deposit
- Signed declaration for PPF account opening
- Details of all PPF account held by customer till date
- Signature of customer to signify compliance to all regulations that drive the PPF scheme
SBI PPF account rules and guidelines
Certain rules and guidelines apply to PPF account opening with SBI. These rules and guidelines are to make customers aware about the various aspects of SBI PPF account.
- Duration of SBI PPF scheme
SBI offers PPF scheme for an initial duration of 15 years after which customers can request extensions in blocks of 5 years. One or more such 5 year blocks can be requested by customers.
- Eligibility criteria to avail SBI PPF scheme
All Indian individuals can avail the SBI PPF scheme either in their own name or in the name of minors. Hindu undivided families are not permitted to avail a single PPF scheme in their name.
- Investment limit for PPF account
A minimum investment of Rs.500 per annum or a maximum of Rs.1,50,000 per annum can be deposited as PPF amount. Any amount higher than Rs.1,50,000 earns neither interest nor any tax rebate and hence should not be invested. The amount deposited in the PPF account can either be deposited via single payment or via twelve installments per year.
SBI PPF account features and benefits
- Nomination Facility
SBI PPF scheme offers nomination facility to customers. This nomination can be made in terms of the number of PPF shares too.
- Tax benefits applicable on SBI PPF scheme
SBI PPF scheme offers the most amazing tax benefits that any investment scheme has. The interest earned is totally exempt from income tax under section 88 of the Income Tax Act. The outstanding PPF amount for customers is also fully exempt from wealth tax payment. These tax benefits make PPF saving scheme one of the most lucrative savings tool.
- Loans and withdrawals against SBI PPF account
Loans from SBI against SBI PPF accounts are permitted. Similarly, partial withdrawals also are allowed on SBI PPF accounts. However, the loan amount and the amount of partial withdrawal is subject to the age of the PPF account and to the PPF balance on any given date. Loans and withdrawals are basically under the sole discretion of the bank.
- Transfer of SBI PPF Account
The SBI PPF account can be transferred to any other bank or any other SBI branch or even to post office PPF upon transfer request by customer. This transfer of PPF account is totally free of any service charge.
Interest rate on SBI PPF scheme
SBI offers an attractive interest rate for PPF account holders. Currently, the rate is 8.7% per annum and translates into a better rate than any other investment option since the returns earned are totally tax-free. SBI pays the interest for full year on March 31st. The applicable interest amount is calculated on the minimum balance between the 5th and the last day of a month.
SBI PPF Calculator
SBI PPF calculator is a great financial tool to help you plan your PPF investment. The calculator takes into account the monthly or yearly investment that you are ready to make and also the applicable rate of interest and then computes the interest paid out to you over the 15 years of deposit period. This calculator is helpful in letting customers know the exact amount of return that they can get on their investment if the rate of interest doesn’t change. Using the PPF calculator also gives customers a general idea about how much investment is required for the end gain that they are expecting. This helps customers in planning their finances in a better way.
How to deposit money in your SBI PPF Account
In order to deposit money in your SBI PPF account, there are two ways that you may take. One if to do the transfer online and another is to visit any SBI bank branch and make the deposit.
- Online deposit of cash
SBI allows customers to deposit cash in their PPF accounts via online banking. You just need to login to your SBI online banking account and make a fund transfer similar to how you do for any other bank. You are required to enter your PPF number as the account number to which cash transfer needs to be made. The payee name should be exactly the same as that mentioned in the PPF account.
- Offline deposit of cash
Deposit to your SBI PPF account can be made offline too, by visiting any of the SBI bank branches. The offline fund transfer can be made either by filling in a pay-slip at the bank or by depositing an account payee cheque. However, the latter requires some extra time for the cheque to get cleared and for the deposit to show up in the PPF account.
How to transfer your PPF account from post office to SBI
Transfer of PPF account from post office to SBI and vice versa is not a difficult process. The customer just needs to raise a request with either the bank or post office and the transfer is processed. You will need to submit a transfer request form along with form SB-10b to the post office in case you wish to get your PPF account transferred to SBI. An identity proof is also required to be submitted to the postmaster. Your transfer request will then be reviewed by the postmaster who will send original PPF account documents like certified copy of account, account opening application form, specimen signature, nomination form etc. to the SBI branch where you wish to open your PPF account. A cheque or demand draft of your PPF amount will also be sent to the SBI bank branch.
Once these documents are received by SBI, the bank will ask you to submit a fresh PPF account opening form along with certain KYC documents. The bank will then review your documents and open your PPF account. The new passbook issued by SBI will not have any of your old PPF transaction details at the post office and will only have details of the PPF transactions carried out at SBI.
- Oriental Bank of Commerce PPF Account
- Bank Maharashtra PPF Account
- Dena Bank PPF Account
- Indian Overseas Bank PPF Account
- PNB PPF Account
- United Bank of India PPF Account
- SBH PPF Account
- SBM PPF Account
- SBT PPF Account
- SBBJ PPF Account
- SBP PPF Account
- Punjab And Sind Bank PPF Account
- UCO Bank PPF Account
- Age Limit for Public Provident Fund
- Deposit Limit for Public Provident Fund
- Loan Against PPF Account
- PPF Accout Opening Banks
- Know About ppf Lock in Period
- How to Change the Nominee Name in the PPF Account
- How to Revive a Dormant PPF Account
- Ppf Account Closing Form
- PPF Account for NRI in India
- PPF Death Claim Form
- Kow about Age Limit for PPF
Other Products from State Bank of India
News About SBI PPF Account
Reduction in Interest Rates on Savings Schemes
The Finance Ministry revealed that the rates of interest on various savings schemes have been reduced marginally. In case of Public Provident Fund, the rates have fallen down to 8% from 8.1 % in the previous period. The rate of interest on the Sukanya Samriddhi Account Scheme have been reduced to 8.5%. The interest rates on Five-Year National Savings Certificate and Five-Year Senior Citizens Savings Scheme have also been reduced. Various time deposits have also witnessed reduction in their interest rates. However the rates of interest on savings deposit have remained the same.
6th October 2016
SBI Cash Deposit Limit Increased
State Bank of India has bumped up the limits on cash deposits allowed. Customers can now use the Cash Deposit Machines to deposit up to Rs.2 lakhs. This is already in effect. Earlier, the limit was Rs.49,900 which was a significantly low amount. The Cash Deposit Machines can also be used to make payments towards PPF and loan EMIs. Customers can utilise the machines to make their contributions towards their recurring deposit accounts as well. The Cash Deposit Machines will eliminate the need to go to SBI branches and transactions can be carried out quickly on the machines.
22nd September 2016
CITU Appeals for Rethink of PPF and PF Decisions
The Centre of Indian Trade Unions (CITU) has called for a reconsideration to the decisions of reducing Public Provident Fund (PPF) interest and disallowing the withdrawal of employer’s contribution from Employees Provident Fund (EPF) until the age of 58.
CITU Tamil Nadu Secretary M. Chandran said that these moves are hitting textile workers in the state hard. “Fixing of 58 years ceiling for drawing employer’s contribution in provident fund will affect the young workers’ initiatives to start micro/small ventures,” he said. He pointed out that many young workers from other states come and work in the textile industry, and after a few years they withdraw the PF amount and return to their native places.
The CITU also said that cut in interest rate from 8.7 percent to 8.1 percent on PPF has also affected the common man who thrives on small savings.
12th April 2016
PPF and other small savings instruments see slashed rates
The present Finance Minister in the latest budget advocated cutting down on the rates for small savings instruments. The minister justified the cut by saying that no other growing economy in the world offers such high rates of interest and that high rates were detrimental to the growth of a steady and strong economy.
Interest rates on small savings instruments like Kisan Vikas Patra, PPF and senior citizen deposits will be slashed by up to 1.3 per cent from today onwards. The reduced rates will be in full force for the coming three months after which these will be reviewed and set again. From now on, interest rates will be set by the government quarterly and then changed if required, instead of setting these for the entire year in a go.
5th April 2016
SBI report suggests higher PPF interest rate for individuals above 45
A report by the State Bank of India has come up with the suggestion for the PPF update by the central government. The bank is of the view that instead of cutting down the rate of interest offered on PPF, the government should implement a phased approach for PPF interest rates. What the report suggests is that the rate offered to customers above the age of 45 years should be higher than those offered to people less than 45 years of age.
Similarly, the report also suggests leaving the Sukanya Samriddhi interest rates untouched since this is a social scheme focussed towards a different socio-economic goal altogether.
23rd March 2016
PPF interest rate is now 8.1%
Government announced a rate cut in Public Provident Fund from 8.7% to 8.1%. This rate is effective for the investments made during 1st April to 30thJune, 2016. The lower earnings means that the millions of households will have to shuffle their savings portfolio. The rates are going to be revised every quarter under the new system.
22nd March 2016