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SBI PPF

Knowing About SBI PPF Scheme and its Benefits

The PPF scheme of SBI is really a very safe and good method for investing your money. You get many benefits out of your PPF account of SBI.  Firstly we will discuss the benefits of SBI PPF account and then will let you guys know how to start an SBI PPF account.

Benefits of SBI PPF account

The PPF scheme of SBI is really a very safe and good method for investing your money. You get many benefits out of your PPF account of SBI.  Firstly we will discuss the benefits of SBI PPF account and then will let you guys know how to start an SBI PPF account.

  • Tax Benefits – SBI’s PPF account provides tax benefits. Depositing in SBI PPF scheme gives you benefits in tax. Also, after maturity of the PPF account, the whole amount plus the interest is non-taxable.PPF deposits are exempted from wealth tax also.
  • Loan Facility – If there is any such situation, where you want to borrow some money from some financial institution, here also your SBI PPF account can help you out. You can get a loan on your PPF account. But this facility will available to you according to the age of your SBI PPF account, also the amount that you can take for the loan is decided according to the balance in your SBI PPF account on a particular given date.
  • Withdrawals – If you want to take out all the money from your PPF account then you can do that only after your SBI PPF account gets mature. Until that time you can withdraw only prematurely. Withdrawing prematurely means you cannot withdraw all amount but can withdraw some part of it. But there are some conditions to do that, firstly you can withdraw only once in a year, you cannot withdraw more than once, secondly, it is subjected according to the age of the PPF account and balance available on a particular date.
  • Interest on SBI PPF account – You also get compounded interest according to the balance available in your SBI PPF account on 31st March of every year.
  • The nomination is also available – You can also make someone nominee of your SBI’s PPF account.
  • Transfer Facility – You also get the transfer facility on your SBI’s PPF account. You can transfer your PPF account from one SBI branch to another and that too without any charges. This transfer facility is absolutely free.

 

How to Open an SBI PPF Account ?

  • Firstly you need to find an SBI branch that opens PPF account, as it’s not opened by all the branches.
  • You need to fill the PPF account opening form, available at the branch.
  • Then you need to submit the form along with some documents.
  • You should have photocopies of your documents to submit them to the bank and should also have the originals for verification purpose.
  • Once the documents are verified and find out to be valid, your form will be accepted by the bank.
  • Once the form is accepted, then your PPF account is opened with the branch.
  • After the account has been opened, the bank will issue you the passbook for the same.

Who is eligible to open an SBI PPF account ?

Every individual is eligible to open an SBI PPF account either on their name or on behalf of a minor.

Documents Required

  • Filled and signed SBI PPF account opening form.
  • Identity Proof like – Voter Card, Pan Card, Aadhar Card, Driving License, Passport etc, in original for verification and photocopy to be submitted along with the PPF account opening form. The photocopy should be self-attested.
  • Address Proof like – Voter Card, Aadhar Card, Driving License, Passport, Ration Card, Electricity Bill, Telephone Bill, Water Bill, Rent Agreement (in case if you are living somewhere outside your native city), etc, in original (for verification) and photocopy (to be submitted and should be self attested).
  • At least 2 passport size photographs.

Duration of SBI PPF Account

In the starting, it is for 15 years and after that, if you wish to then you can extend your PPF account after 15 years as well with or without subscribing further. If you subscribe further, then, you will get the same interest rate as you were getting previously. But, if you continue it without the subscription, then you don’t have any withdrawal limits and you can take as much money as you want, but only once in a year. But this time period for which you want to extend your PPF account should be in a batch of 5 years only.

Deposit Limit of SBI PPF Account

PPF accounts have deposit limits. Deposit limit means that they have a minimum limit that must be deposited by a PPF account owner in a financial year. Similarly, there is a maximum deposit limit as well. The minimum deposit limit is Rs. 500/-, which means you have to deposit at least Rs. 500/- in the whole financial year. And the maximum deposit limit is Rs. 1,50,000/-, which means one cannot deposit more the one and a half lakh rupees in one year. You can add your money at once only or you can divide it into installments.  But you cannot exceed 12 installments per year.