The government of India, in 1968, introduced the Public Provident Fund scheme which was meant to provide people with an instrument that will help them save money over a period of time. One of the banks that was authorised to provide its customers with this scheme was the State Bank of Travancore.
Features and benefits of the State Bank of Travancore provident fund
According to the scheme, customers can invest up to Rs. 1.5 lakhs over a period of 15 years. The investment earns an interest at a rate which is decided by the government. The scheme comes packed with features and benefits that make this scheme a very viable one for those looking to invest in a sage place.
There are quite a few features that make the provident fund scheme offered by SBT attractive. Some of these features are:
- Investments made in this scheme are eligible for income tax benefits under section 80C of IT Act.
- The interest you earn on your investments are also not taxed.
- The account can be opened by an individual for themselves or on behalf of a minor.
- The duration of the deposit is 15 years which can be extended in clumps of 5 years.
- If you extend the PPF by 5 years, you are not obligated to continue depositing funds in it.
- You can open the account with as little as Rs. 500.
- The amount you want to deposit in a SBT public provident fund account can be deposited as a lump sum or in instalments.
- You can even nominate a beneficiary for the account in case something happens to you.
- You can take loans against the PPF and make premature withdrawals in case you fall short of funds.
How to Open a State Bank of Travancore Public Provident Fund Account Online?
To be able to open a PPF account with State Bank of Travancore, you will need to fill up the account opening form and submit it at the bank’s branch along with any supporting documents that they require. The PPF account cannot be opened online with this bank.
Documentation required to open PPF account with State Bank of Travancore
There are some documents that you will need to provide to the bank when you want to open a PPF account with them. These documents are:
- The account opening form which can be obtained from the bank.
- Know Your Customer documents.
- Passport sized photographs, the exact number of which is dictated by the banks requirements.
- If you plan on nominating someone then you will have to submit the nomination form as well.
- In case of minor or senior citizens, the bank may require additional documents which they will inform you about.
State Bank of Travancore PPF Account Opening Form
The form that you need to submit for the SBT provident fund account is incredibly simple to fill up. There are two forms that you need to submit. They are:
The account opening form (PPF Form A)
This is the form that provides the bank with all the details they need to open your account. On this form you will enter your name and contact details. In case the account is being opened for a minor then the details of that child will also be provided through this form. It will also tell the bank what you want to contribute towards the account as an initial subscription.
Nomination form (PPF Form E)
This is the form that informs the bank about your nomination preferences. It will require for you to give the contact details of the nominee for your PPF and also have the document attested by 2 witnesses.
State Bank of Travancore PPF Account Rules and Guidelines
In order to ensure that your PPF account works without any hitch, you will be required to follow the following rules and guidelines.
- You can open only one PPF account for yourself.
- The maximum amount that you can deposit in the account in a year is limited to Rs. 1.5 lakhs.
- You cannot close the account prematurely.
- If you fail to deposit anything in the account in a year the account will be considered discontinued. It can be restarted by paying a penalty for the years that you didn’t invest in it.
- In the unfortunate event of your death, the nominee can close the account prematurely.
- The account cannot remain active if the account holder passes away.
- Loans against the PPF can be taken only between the 3rd and 5th years of the PPF.
- The loans will have to be paid back in 36 months along with an interest.
- Partial withdrawals will be permitted after the 6th year of the PPF.
- While investments can be made in instalments, the number of instalments should not exceed 12 in a year.
State Bank of Travancore PPF Scheme Interest Rate
Since the interest rate on a public provident fund account is regulated by the government, it is set to 8.7% per annum. This PPF interest rate can change if the government decides to change it. The interest that earned is calculated based on the least balance in your account between the 5th and last day of every month.
In case you make payments via cheques then the interest will be calculated taking the date of realisation of the cheque as the first day.
State Bank of Travancore PPF Calculator
There are tools that you can use to figure out what the maturity value of your PPF account will be. They are known as PPF calculators and they are incredibly simple to use. All you have to do is enter the amount you plan to invest every year and it will tell you the maturity value.
If your investment amount is going to change every year then you can enter it individually for all 15 years and see what the value of your account at the end of 15 years will be.
How to deposit money in your State Bank of Travancore provident fund Account
Money can be deposited in the State Bank of Travancore PPF account via cheques or in cash. All you have to do is go to the bank’s branch, provide them with your account details and the money and they will deposit it in your account.
How to transfer your PPF Account from Post Office to State Bank of Travancore
If you wish to transfer your account from a post office to SBT then all you have to do is inform the post office of the change. They will ask you to complete some formalities and close your account with them. You must also inform the bank that you intend to transfer your account from the post office to their branch and provide them with the account details which they will use to verify your account and transfer it.
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