SBI Public Provident Fund (PPF) is a popular long-term investment option scheme in India. The Government of India offers attractive interest rates and returns with safety through this scheme. Returns you earn from PPF are fully exempt from tax under Section 80C of the Income Tax Act. Opening a PPF Account can also get you facilities such as loan, withdrawal, and extension of account.
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SBI PPF Interest Rates 2023
|Duration||Rate of Interest|
|April 2023 -June 2023||7.10% p.a.|
|January 2023 – March 2023||7.10%|
|January 2022 – Dec 2022||7.10%|
|1st October 2021 – December 2021||7.10%|
|1st April 2020 – 30th September 2021||7.10%|
|31st March 2020 – 1st July 2019||7.90%|
|1st April 2019 – 1st January 2019||8.00%|
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How to Open PPF Account in SBI?
The online procedure for SBI Public Provident Fund account opening is simple. It can be done through internet banking or mobile banking. Following are the prerequisites for SBI PPF account opening are:
- You must link your ‘Aadhaar’ number to your SBI savings account.
- You must be able to receive an OTP on the mobile number linked to your Aadhaar card.
- Resident Indian individuals can open a Public Provident Fund account. Other individuals can open an account on behalf of minors in India.
- An individual can maintain only one Public Provident Fund account. Though as an exception you can handle another one that is on behalf of a minor.
- Both parents cannot open separate Public Provident Fund accounts on behalf of the same minor.
- Grandparents can only act as a guardian on behalf of a minor grand-child who has lost both parents. However, they cannot open a PPF account on behalf of their grandchildren.
Recommended Read: PPF Account for Minors
How to Open SBI PPF Account Online?
Following are the steps to open an SBI Public Provident Fund account online:
- Log on to onlinesbi.com through your username and password.
- Click on the ‘Request and inquiries’ tab from the top right corner.
- Now, select the ‘New PPF Accounts’ option from the drop-down.
- Your page will redirect to the ‘New PPF Account’ page.
- Fill in the details such as customer name, address, CIF number, and PAN on this page.
- Enter your bank account number and PAN from which you would like to contribute to your PPF account. You will have to enter the branch code and verify the respective branch name.
- Then, you receive a reference number against your PPF account opening application. You can also download and print the filled online form.
- Lastly, you must sign the applicable pages of the application form and visit your preferred SBI PPF account branch. You must also furnish self-attested copies of applicable KYC documents (PAN, Aadhaar, etc.) and a photograph. The KYC documents must be submitted within 30 days of account opening to complete the process. Remember to carry all documents in original for verification purposes.
Steps to Open SBI PPF Account Offline
The offline SBI Public Provident Fund account opening procedure can be completed at your nearest SBI branch or post office. You require the following documents to open a PPF account at SBI:
- Form A or the PPF account opening form
- A passport-size photograph
- Any address proof as per the KYC norms
- Nomination form
- Copy of your PAN or Form 60 – 61
Use Scripbox’s SBI PPF Calculator tool that provides an estimate of interest earned, maturity value for a given amount invested and investment period.
Read Also How to Open PPF Account in HDFC?
Features of an SBI Public Provident Fund Account
Following are the prominent features and benefits of opening a Public Provident Fund account with SBI:
- The minimum investment limit in the SBI PPF account is Rs. 500. You may deposit up to a maximum of Rs. 1,50,000 in a year.
- The investment duration is 15 years. Thereafter, you can opt to extend the investment for 1 or more blocks of 5 years each.
- The Central Government determines the rate of interest on SBI PPF accounts every quarter. The SBI PPF interest rate for the quarter is 7.10% per annum
- You can avail of loan and withdrawal facilities depending upon the age of your account and balances. The permissions for these facilities are applicable as specified on the dates of application.
- Income Tax benefits on SBI PPF are available under Section 80C of the IT Act.
- You can nominate one or more persons in your SBI PPF account. Subsequently, you can also define the share of each nominee as a subscriber.
- Your SBI PPF account is transferable to other SBI branches, other banks or Post Offices, and even vice versa. As a subscriber of the scheme, you can avail of the service free of charge.
How To Deposit Money in SBI PPF Account?
You can deposit money in your SBI PPF account online through net banking or offline by visiting the SBI branch.
- Online: State Bank of India allows you to deposit cash in your PPF account via online banking. You need to log in to your SBI online banking account with your credentials and make a fund transfer. Next, you must enter your PPF account number in which you want to deposit the amount. Ensure the payee name in both accounts is the same.
- Offline: SBI PPF account deposit is available offline as well. To deposit funds you can visit any of the SBI bank branches across the country. You can make an offline fund transfer to your PPF account by filling in a payslip – Form B. You can also deposit an account payee cheque.
Check Out SBI PPF Online Payment
SBI PPF Account Withdrawal Rules
Withdrawal from the SBI PPF account can be made by submitting the duly filled withdrawal form at your nearest branch.
Following are the withdrawal rules from your SBI PPF Account:
- One withdrawal during a financial year is permissible after five years excluding the year of account opening. For instance, if you open an account during 2021-22 the withdrawal can be done during or after 2027-28.
- The withdrawal amount can be up to 50% of the balance at the end of the 4th preceding year. If the balance at the end of the preceding year is lower, the withdrawal amount will be 50% of this amount. For instance, withdrawal from an account opened in 2021-22 can be done in 2027-28. The withdrawal amount will be up to 50% of your account balance as of 31.03.2024 or 31.03.2027. The lower amount will be permissible for withdrawal.
Explore: PPF Interest Rate 2023
Frequently Asked Questions
The following are the documents required to open an SBI PPF account: PPF account opening form, latest passport size photograph, address proof as per KYC norms, nomination form and a copy of PAN card.
The PPF account can be opened only by Indian citizens and by individuals on behalf of a minor. Only one account can be opened by an individual in their name. Moreover, another account can be opened on behalf of a minor. Only the parents of the minor can open a PPF account. However, both the father and the mother can’t open an account individually on behalf of the child.
Hindu Undivided Families (HUFs) will not be able to open an account.
You can deposit money in an SBI PPF account either online or offline mode. Online you can directly transfer money through net banking. For offline transactions, you can either deposit a cheque or drop a pay-in slip.
Yes, you can transfer your PPF account from one SBI branch or post office to the other.
Yes, you can access your PPF account through SBI internet banking.
Yes, you can get a loan against the SBI PPF deposit. However, you can get the first loan after the 3rd year and before the 6th year. The maximum loan amount is 25% of the balance available at the end of the second year.