SBI PPF account – Open online, interest rates and rules
A lot of people wonder how to open an SBI PPF account and why to open one? Also, how these accounts can be helpful later. Almost everyone feels comfortable in dealing with government banks for long term savings.
For long term savings, a lot of people prefer going through the post office and SBI. Now a lot of other banks also provide the same services.
What is a Public Provident Fund Account in SBI?
SBI PPF Account is a 15-years debt scheme thing that has a lot of flexibility. You can keep the account active by paying just 500/- at the start, and the maximum amount which is permitted by the bank is around Rs 1.5 Lakh a year.
You can make a maximum contribution of 12 years in total. The interest on the account will be calculated every month, and then the amount will be credited at the year-end. If you make the payment during the particular month, then the interest will be calculated accordingly for that month.
How is the interest calculated on the SBI PPF Account?
The government declares the PPF interest rates during the beginning of every financial year. The best part about the account is that along with interest, it is all tax-free.
If you start the SBI PPF Account at the age of 30 and then you keep paying Rs 1 Lakh every year then in another 30 years, you’ll be able to have around 1.13 crores in the account if the interest is 8%.
How to open an SBI PPF Account online?
You can open the account online or by visiting the branch personally. There is an option available for opening the account online, and you can manage your transactions there.
Steps for opening the SBI PPF account online:
- Go to the SBI bank’s website.
- Log in to the SBI internet banking
- You will see an option of e-services in the menu bar, so click on that option
- Go to the new PPF account option under the e-service option
- If you are an existing customer, then your PAN number will be displayed
- Enter the SBI branch code where you want to have the account
- It will ask you the nominee details
- Click on the submit button after you fill out the nominee details
- You will get a reference number
- Print the online PPF application form and visit the nearby SBI branch with your KYC documents and photograph.
- You can submit the form within 30 days
- The SBI PPF account will then be added to your portal
How to open the SBI PPF account offline?
You can go to the branch where you want to open the account with all the necessary documents which are needed for opening the account.
You have to submit some ID proofs for opening the account and then the bank will further help you in opening the account. You can ask them for the documents that are needed to open the account.