State Bank of Hyderabad, SBH, is a subsidiary of the State Bank of India. The bank provides PPF scheme to customers apart from standard banking products and services. PPF scheme from SBH is a safe investment option for people who are looking to invest their money but are scared to take risk.
About SBH PPF Account
The PPF scheme is ideal for long-term investment purposes since the money deposited has a lock-in period of 15 years. However, the scheme allows partial withdrawals within a specific time frame.
PPF scheme is mostly preferred by customers due to its tax benefit which is huge considering the interest received on your PPF outstanding is absolutely tax-free.
How to avail State Bank of Hyderabad PPF scheme
If you want to avail the PPF scheme at State Bank of Hyderabad you will need to visit any of the bank branches. PPF form needs to be filled and submitted along with certain KYC documents which are required by the bank to open a PPF account.
SBH PPF account can be opened at any of the bank’s urban semi-urban or rural branches. Once the required documents are submitted to the bank you PPF account will be opened in a few days. You will receive account details as well as PPF passbook to keep track of your PPF transactions.
Documents required to open SBH PPF Account
In order to open a PPF account with SBH, customers are required to furnish the following documents.
- 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
The bank may ask you to self-attest these documents before submitting. Also, you will be required to carry original copies of documents for cross-verification.
SBH PPF account opening form
SBH PPF account opening form is a pretty straightforward form which requires customers to fill in certain basic details like –
- 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
SBH PPF account rules and guidelines
There are certain rules and regulations applicable to the SBH PPF scheme and these are listed below.
Deposit period for SBH PPF scheme
PPF schemes at all banks and post offices are offered for a maximum tenure of 15 years after which customers need to apply for extension of the same. This extension of account is provided in blocks of 5 years. Customers can request one or more such blocks as per their convenience.
Eligibility criteria for SBH PPF account
SBH PPF scheme can be availed by all individuals in their name or in the name of their children. Husbands can open PPF account in the name of their wives. Non-resident Indians are not eligible to open PPF account. Each individual is eligible to open just one PPF account in his/her name. PPF account cannot be obtained in the name of Hindu undivided family.
Investment limit for PPF account
Investment in PPF scheme is bound by certain upper and lower limits. The minimum amount that you can put into your PPF account every year is Rs.500 while the maximum amount that can be deposited is Rs.1,50,000. Any amount above this maximum limit is not eligible to earn interest. Also, this extra amount is not eligible for tax exemption too. The deposit made to PPF can be done in in lump-sum for one full year or can be broken down into 12 equal installments in a year.
SBH PPF account features and benefits
You can choose a nominee for your PPF account. A separate nominee form needs to be filled and submitted. In the unfortunate event of sudden demise of the PPF account holder, the whole PPF amount along with the interest is paid out to the nominee.
Tax benefits applicable on SBH PPF scheme
One of the most prominent reasons for popularity of PPF scheme is that the interest earned on the amount is tax-free. This is in line with section 88 of the Income Tax Act. Also the outstanding PPF amount of customers is completely free from wealth tax. This makes PPF scheme one of the most lucrative investment instruments to own.
Loans and withdrawals against SBH PPF account
Loans of up to 25% of the outstanding PPF amount can be availed by customers but only between the 3rd and the 5th financial year. The loan amount and partial withdrawals are subject to the age of the PPF account and the account balance.
Transfer of SBH PPF Account
SBH PPF account can be transferred to any other bank or any other SBH 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 SBH PPF scheme
PPF accounts irrespective of the bank or post office they are maintained at, offer extremely attractive rates of interest of 8.7% per annum. This PPF interest rate translates into a higher effective interest amount as compared to other investment tools since the interest received on PPF account is totally tax-free. SBH 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.
SBH Online PPF Calculator
In order to invest in a PPF scheme customers can make use of the SBH PPF online calculator which takes into account certain basic inputs to yield an almost accurate idea of the interest amount and the total PPF amount that will be received on maturity. You just need to input your monthly or yearly PPF installment and feed in the current rate of interest. The calculator then processes these input parameters to let you know the interest payment pattern over the whole deposit period of 15 years.
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 SBH PPF Account
You can deposit money in our SBH PPF account by making use of SBH online banking or by visiting any of the SBH bank branches. Both the options are explained below.
Online deposit of PPF amount
You can deposit money in your SBH PPF account by logging in to the SBH online banking platform. Transfer of funds to PPF account can be made in the same like normal fund transfer transactions are carried out. The payee account number however needs to be your PPF account number and the payee name needs to be exactly the same as mentioned in the PPF account.
Offline deposit of PPF amount
For offline deposit of SBH PPF amount, customers can visit any of the State Bank of Hyderabad branch. Deposit can be made via cheque or pay-slip. Standing instructions also can be issued to the bank to ensure timely payment of PPF amount and minimum hassle.
How to transfer your PPF account from post office to State Bank of Hyderabad
You can get your PPF account transferred from post office to State Bank of Hyderabad as well as from any other bank to SBH. The process is quite straightforward and simple. You just need to raise a request at the post office and fill in a transfer request form. In addition to this an identity proof also is to be submitted to the post master. The post master then reviews your PPF account transfer request and sends all the PPF account related original documents to the SBH branch where you wish to transfer your PPF. These documents include the certified copy of account, copy of account opening form, specimen signature, nomination form etc.
Once these documents are received by the State Bank of Hyderabad, the bank will then intimate you to come and fill in a separate new PPF form and submit certain KYC documents. The bank then reviews your PPF application and submitted documents and notifies you about PPF account status within a few days. Once your PPF account has been transferred to SBH, you will receive a new passbook from the bank which will contain transactions carried out via bank and all the earlier post office transaction will no longer be reflected in the passbook.
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