SBI PPF Account 2023 - Interest Rates, Login, & How to Open Online

The State Bank of India Public Provident Fund Account (SBI PPF account) is a Government of India initiative to encourage saving among the people of India. The tax-saving investment scheme is for the long-term. But it is an excellent investment as it helps the investor earn lucrative returns thanks to the attractive SBI PPF interest rate, which is 7.1% per annum. The total investment to an SBI PPF account can be as low as INR 500 and as high as INR 1.5L annually.

Let's take a look at an example now-

Arun, an employee, deposits INR 20,000 pa in his SBI PPF account annually. Thus his total investment at the end of 15 years is INR 300000. However, he earns an SBI PPF account interest rate of 7.1% pa, which totals INR 2,42 428 (interest amount only). So at the end of the tenure, which is 15 years, the maturity value of his SBI PPF account will be INR 5,42,428. The bonus was his tax liability was reduced by INR 1.5 L for each financial year.

If you have an investment in the  SBI PPF scheme and want to know how much the maturity value of your SBI PPF will be at the end of its tenure, use the SBI PPF calculator.

What is an Online SBI PPF Calculator?

An online SBI PPF calculator is a simple tool to calculate the total SBI PPF interest amount, the maturity value, and the total amount invested for the specific tenure. It is readily available online, and the online SBI PPF Calculator is an excellent tool to determine the amount to invest in the SBI PPF scheme. The other benefits of the SBI PPF Calculator are listed below:

• It helps the depositor to know how much money they must invest every month to get the desired return at the end of their tenure.

• It calculates the precise amount the depositor can withdraw from the 7th year.

• The SBI PPF calculator tells the investor how much money they have invested and what is the guaranteed return on their investment.

• It lets the investor know how much money they will earn as interest.

Takeaway

A specific sum of money as agreeable to the employee is deducted from their monthly salary and deposited in the SBI PPF Scheme on which they earn compound interest. They can invest for a maximum tenure of 15 years. And SBI offers PPF to all (both customers and non-customers).

Features of the SBI PPF Scheme

SBI PPF scheme suits the risk-averse customer because it ensures a guaranteed return. The added advantage is that the depositor receives a tax exemption on the amount deposited in the fund. Please have a look at its key features, which are listed below:

• The maximum limit for a deposit in the SBI PPF scheme is INR 150000 per annum, and its minimum limit is INR 500.

• The subscriber can decide to pay the entire sum due to the scheme in one installment as a lump sum or pay a predetermined sum each month.

• There are two modes of SBI PPF installment:

  • Offline by submitting a cheque for the installment amount or by cash.

  • Online through an online transfer of funds (mobile banking)

• The depositor must initially invest in the scheme for 15 years. If they want to extend the tenure of the fund post 15 years, they must apply that effect and choose a block or two of 5 years each.

• The Central Government of India determines the SBI PPF interest rate each quarter. It is currently 7.1% and is the same from April 1st, 2020.

• The SBI PPF interest rate calculation is as follows:

  • SBI PPF interest is calculated from the 5th to the last day of the month.

  • The payment of interest is annually on March 31st.

  • The calculation of interest is on the SBI PPF account minimum balance.

• One of the benefits of the scheme is that the investors can apply for a loan against their SBI PPF account after the 3rd year but before the 6th year of investment. 

• From the 7th year of investment, the investor can also partially withdraw from their SBI PPF account. 

• The Government of India makes it mandatory for employees to have a PPF account. 

• The tax benefit for the investor under the Income Tax Act of India Sec 80 is up to INR 1.5 L per annum. 

• The depositor is free from paying wealth tax on the PPF account.

• The subscriber to the fund can appoint his nominees. The nominees may be one or more. The subscriber will also decide and specify the share of each nominee.

• If the subscriber fails to transfer to the fund by the end of the year, a sum of INR 50 is the annual penalty. 

• The subscribers can request the transfer of the SBI PPF to other branches of the said bank. The bank will oblige their customer and effect the transfer as per their request at zero charges.

• Anyone who is a resident of India may open a PPF. However, if the depositor subsequently moves to a foreign country, his status may change to NRI. Nevertheless, they need to keep the SBI PPF open after the change in status.

Who can Invest in the PPF Scheme at SBI?

It is easy to open a PPF scheme at SBI. However, it is only open to some. The depositor must satisfy the following conditions to be eligible for the PPF scheme at SBI:

• The subscriber should be a resident of India if he must open an SBI PPF.

• Non-resident Indians cannot open an SBI PPF account. However, if they had opened one when they were residents, they could carry it forward until its maturity.

• Any adult or minor individual can have only one SBI PPF account in their name.

• There is no age bar for opening an SBI PPF account. The parents of an infant can also open one in the name of their just-born child. Similarly, the children can gift their parents by opening an SBI PPF in the parents' name in their old age.

• The parent or guardian can only open one minor SBI PPF and not multiple accounts under the SBI PPF scheme in their minor child's name.

• However, the parents may jointly or individually open one SBI PPF account in the name of their minor child. Please note that they cannot open one each.

• Although individuals belonging to a Hindu undivided Family can invest in the SBI PPF scheme. But the HUF cannot open an SBI PPF.

• The grandparents of a minor child can open an SBI PPF account in the name of their grandchild only if the child's parents are deceased. The grandparents open the account on behalf of the minor child as their guardian.

Essential Documents to Open PPF at SBI

Please ensure that you have the following documents before opening the PPF at SBI:

• Fill up the SBI PPF account opening form 1 for the offline opening of PPF at SBI.

• Please fill up the SBI PPF account opening form 1 online and print it out. Please note that the subscriber should duly sign the form.

• Photographs — they should be passport-size.

• Self-attested copies of identification proof, which can be either of the following documents: 

  • Pan Card

  • Aadhar Card

  • Driving license'

  • Voter ID

•  Self-attested copies of address proof can be either of the following documents:

  • Utility bills

  • Aadhar Card

  • Passport 

How to Open an SBI PPF Account

The State Bank of India is a well-known Indian bank that offers its customers and others the facility to open a PPF account. It has approximately 15000 branches and is the largest bank in the country that provides the facility. That makes it convenient to open and access an SBI PPF account; SBI also offers an online facility to open a PPF account, which has simplified the process of opening an SBI PPF Account. The process is as follows:

Prerequisites to open an SBI PPF Account

The SBI PPF account opening process is simple, and the subscriber can do it online. However, the subscriber must ensure that he first follows the below-mentioned steps:

• The subscribers to the SBI PPF Account must have a Saving Bank account at SBI.

• If the subscribers aren't customers of SBI and do not have a savings bank account with SBI, they must open one before opening the SBI PPF account.

• The subscriber must link his Aadhar card to the SBI saving account and enable the mobile banking or net banking facility.

• The subscriber must disclose their active mobile number and go through the verification process.

Plan the SBI PPF Account Opening Procedure

An investment is generally a plan to provide sufficient money for a financial need in the future, and proper planning ensures that you will have enough funds when you need them. Follow the following steps to ensure appropriate planning of the SBI PPF.

• Calculate how much money you need and when you need it.

• You can avail of a loan against your SBI PPF from the third year of investment. 

• Calculate the adequate financial need 

• Use the SBI PPF to predetermine the annual deposit amount by using an SBI PPF calculator and invest the necessary amount.

Step-by-Step SBI PPF Account Opening Procedure

The subscriber may open an SBI PPF account online or offline at their convenience. However, SBI offers online opening of SBI PPF account only to customers with a savings or current bank account. Follow the steps below to open an SBI PPF account online:

• Visit the SBI official website and log in with your credentials to your mobile or net banking account.

• You will find the "Request & enquires option" in the main menu on the dashboard.

• Click on the "New PPF account" option in the drop menu.

• The SBI PPF account opening form will display on the screen. Fill in all the details accurately.

• The requested details are as follows:

  • Customer name, 

  • Customer address, 

  • CIF number

  • PAN card details

• If the subscription to the SBI PPF account is on behalf of a minor, tick the appropriate box.

• Enter the home branch details of the bank from where the subscriber will pay into the SBI PPF account, such as

  • Bank branch code 

  • Branch name

• List out the nominees for the SBI PPF account and click on submit.

• The personal and nomination details appear on the screen for cross-checking the accuracy of all the entered details. Rectify errors, if any.

• Click on proceed.

• The SBI PPF account opens instantaneously and displays on the screen.

• The PPF Account number will also display on the screen.

• The subscriber will receive the link to download the SBI PPF account opening form.

• Print out the duly filled-in and signed SBI PPF account opening form.

Depositing Funds to the SBI PPF Account

The subscriber can transfer funds to the SBI PPF account either through an online transfer or by visiting the branch of the SBI where they have a savings account or current account as follows:

• The subscriber logs in with their credential to their online banking account and transfers the funds from their personal statement to the SBI PPF account. The name on the payee account and the SBI PPF should be the same.

• Alternatively, the subscribers can pay into their SBI PPF account through an account payee cheque or paying in slip by visiting their home branch. 

Rules About Premature Withdrawal from the SBI PPF Scheme

The subscriber of the SBI PPF scheme can prematurely withdraw from their SBI PPF account, provided 5 years have passed from the day of the initial investment in the fund but before the end of its tenure. However, premature withdrawal is allowed only in the following circumstances.

• Suppose the subscriber's immediate family is seriously sick with a life-threatening ailment and requires funds for their treatment. The account holder will be allowed a premature withdrawal only if they provide adequate proof, such as a statement from competent medical personnel.

• The subscriber can prematurely withdraw from their SBI PPF account if they can prove they need the fund for their higher education. The subscriber will need to submit the admission details and fee receipt of the university or institution where they wish to study.

In a Nutshell,

The SBI PPF account is a sensible investment because it accompanies a high-interest rate and tax incentives. The subscriber to the SBI PPF scheme must initially transfer a specific sum each month, failing which, they will have to pay a penalty of INR 50 for INR 500. However, they can withdraw from their SBI PPF account in case of emergency or extend their tenure if they wish to do so.

SBI is a reliable bank in India and offers a high SBI PPF Interest rate which is why it is an excellent option for risk-averse customers.

Frequently Asked Questions (FAQs):

Q. How many SBI PPF accounts can an individual have?

An individual can have only one SBI PPF account in their name. However, they can open another separate SBI PPF account in the name of a minor who may be their child or ward. For instance, a father can open an SBI PPF account in his son's name or a guardian in the name of their ward.

What documents will I require to open a PPF account in SBI?

Please check the list of essential documents for opening a PPF account at SBI below.

• Nomination form

• Copy of pan card

• Address proof and Identification proof

• Passport-size photograph

• SBI PPF account opening form

Q. Can a subscriber avail of a loan against their SBI PPF account?

A subscriber can apply for a loan against their SBI PPF account only during the year three to six after investing in the SBI PPF scheme.

Q. How can I withdraw from my SBI PPF account?

SBI provides a Form 'c' to facilitate withdrawal from the SBI PPF account. The subscriber must fill up the same with all the necessary details. The form is readily available on the SBIs official website download. Alternatively, the subscriber can obtain the same from the Post office or the home branch of SBI. Finally, the subscriber must submit the form duly filled and signed to their home branch or post office where they have a PPF account. Under special consideration, the limit for a withdrawal is 50% after the 5th year.

Q. When and how can I close my SBI PPF account? 

The subscriber can close their SBI PPF account only at the end of their tenure, which is 15 years. They can transfer the funds to their saving or current bank account and request the bank to close the SBI PPF account.