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?