How to open PPF account in SBI and why to open PPF account in State Bank of India?
All of us feel comfortable in dealing with a government bank for our long term savings. For a long term savings like PPF, most of us prefer to go through Post office or SBI, though the facility is now available with other banks like ICICI.
PPF Account in SBI- Can I open it online?
No. You have to open PPF account in SBI by visiting the branch personally. Online option to open PPF account in SBI is not available.But once the account is opened, you can manage transactions online.
PPF Account in SBI: Procedure
1. Identify the convenient branch of SBI, which offers PPF facility.
Please note that all branches of SBI are not offering the PPF services. There are designated branches of SBI which offers PPF facility. You may find a branch where you can transact your account at your convenience. You can identify the designated branches in your area, by visiting the nearest SBI branch in your area.
2. Visit the designated branch with necessary documents
You have to visit the designated branch personally and collect the application for PPF from the branch. You have to submit the filled up application along with the necessary documents. The documents required are similar to your KYC applications. You may carry the original and a self attested copy of the documents. You have to submit one proof for your identity and another proof for your address. 2 recent Passport size photographs are also required.
PPF Account in SBI-Documents Required
3. Collect your PPF Passbook
Once you submit the above documents along with the filled in application for PPF, you will be issued PPF Account Passbook similar to a bank pass book. Please verify the correctness of the data in the passbook such as your name, nominee name etc.
4. First time deposit in PPF account
Yes, now your PPF account is ready. Using a Pay – in – slip, you may make the initial deposit in your PPF account. You can pay any amount between 500 – 1 Lakh.
Going forward, you can manage the PPF account online. You may add your PPF account as a third party account and can transfer amount like any other online payment. It is not necessary that you should have a bank account in SBI. You can do the online transfer from your bank account to the PPF account, by registering the PPF account as a third party account.
It is better to visit the branch and update your passbook once in a while to ensure that your online payments are recorded correctly in the bank records.
Can I transfer my PPF account from a SBI branch to another branch/post office?
Yes, you can transfer your PPF account to any other designated branches or to any Post office dealing with PPF. You have to give a transfer request along with the updated passbook in the SBI branch for this.
All about PPF account in SBI?
It is a 15 year debt scheme with lot of flexibility. You can keep the account in force by paying any amount starting from Rs. 500/-. The maximum permitted in a year is 1 Lakhs. You can make a maximum of 12 contributions in a year. The interest will be calculated on a monthly basis, but will be credited to the account at the end of every year. If you make payment before 5th of the month, the payment will be eligible for interest for that month. After 15 years, you can extend the term in blocks of 5 years.
The interest on PPF is declared by government every year at the beginning of the financial year. The current rate of interest is 8.8%. The most attractive feature of PPF is that the entire maturity amount along with interest is tax free.
If you are starting PPF at your age of 30 and keep paying 1 lakh every year for the next 30 years, you will have around 1.3 Crore in your PPF account when you are aged 60, if the interest rate remains at 8.8%.
So, what are you waiting for? Open PPF account in SBI, if not opened already?
I’ve PPF A/c with State Bank of Mysore.Any idea whether the facilities offered by SBI will also be available with SBM?
Yes, it will be there in all State Bank Group banks.
Hi Team, how you can say that “If you are starting PPF at your age of 30 and keep paying 1 lakh every year for the next 30 years, you will have around 1.3 Crore in your PPF account when you are aged 60, if the interest rate remains at 8.8%. -” and what is the current interest rate of PPF ?
The interest rate for the year 2013-14 is 8.7%. It will change every year and will be announced in every March for the coming financial year. The rate will be linked to the debt interest rate in the country.
The PPF is for 15 years only , any provision to make it for 30 years ?
After the initial 15 years, you can extend it by blocks of 5 years. Like that you can invest in PPF for 30 years.
is there any interest in paying amount on monthly basis or yearly.
Yes, in PPF, interest is calculated on a monthly basis.
is there any difference in interest by paying ppf on monthly basis and yearly…
Yes, if you pay in lumpsum before 5th April of a financial year, you will get interest for the full year. Otherwise your interest will be calculated on a monthly basis, as and when you make payment. For getting interest for a month, you should pay before 5th of that month.
I have PPF acc. in ICICI bank , may i open another ppf acc. in SBI ?
Yes, but your annual contribution cannot exceed 1 Lakh in a year. Better, continue the existing account.
i heard that the maturity period for PPF is 7 years….
later we can withdraw the amount ?
please clarify on this.
thanks.
Vijay Kumar
No, the term of PPF is 15 years. From 7th year, partial withdrawal is permitted.
I have PPF account in SBI,Madurai Branch,TamilNadu.
I am staying in Bangalore Now.
Can I do the online payment.If so what is the procedure to register in online?
pl guide me.
Yes, you can do online transactions. First you have to register for the net banking facility of the bank. Later, you can register PPF account as a third party and can pay amount like third party transfer.
HI,
I have a SBI savings account in Jharkhand. Now I want to open a PPF account in PUNE(Maharashtra) with that SBI account. Is this possible for me to open my PPF account from any SBI branch in Pune or do I need to go to my base branch and get it opened from there only??
You can open the PPF in Pune
I have opened a PPF account. I wanted to know, how much money can I take after 6 years as a loan ?
After 6 years, you cannot take loan, you can go for a partial withdrawal. Amount eligible will be the lower of 50% of your balance in the previous year or 4 year preceeding the year of application.