SBI PPF Account – How to open PPF Account in SBI Online

State Bank of India (SBI), the largest public sector bank in the country, offers the option of opening the SBI PPF account online. In this post, I will tell you what is SBI PPF Account is and how to open PPF Account in SBI online.

Public Provident Fund

The Public Provident Fund is a popular small savings scheme in India. It is popularly known as PPF. The scheme introduced by the government of India in 1968 to mobilize small savings.

The government of India decides the PPF interest rate every quarter. The scheme offers an investment avenue with attractive returns coupled with income tax benefits.

SBI PPF Account Benefits

Following are the benefits you can get from a PPF account in SBI.

1. Risk-free investment and returns.

2. Compounded interest rate.

3. Benefit of income tax deduction Under Section 80C of the IT Act, 1961.

4. Investment tenure of 15 years.

5. You can get loans and advances against the PPF balance.

6. Minimum investment amount of Rs.500.

7. Maximum investment allowed is Rs.1.5 lakhs annually.

8. Deposits can be made both via the offline and online route.

9. Extension facility of account in the blocks of five years upon maturity.

10. Facility of partial withdrawal from the 7th year onwards.

11. Deposits can be made in a lump sum and as well in 12 installments.

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Eligibility for opening a PPF Account in SBI

A Public Provident Fund account can be opened and maintained by resident Indian Individuals and individuals on behalf of minors.

The account can also be opened either by the Mother or Father on behalf of their minor child.

Note that Grandparents are not allowed to open the an account on behalf of a minor grandchild.

However, Grandparents can open an account as guardians of the Grandchild in the event of the death of both parents.

Documents required for opening a PPF Account in SBI

The following documents required to opening a PPF scheme in SBI.

1. Public Provident Fund account opening form (Form A).

2. Nomination Form

3. Passport size photograph

4. Copy of PAN card/ form 60-61

5. ID proof and Residence proof as per Bank’s KYC norms

Pre-requisites for opening an SBI PPF Account

You need the following as prerequisites for opening it online.

1. An active SBI savings account.

2. Net banking/Mobile banking facility for your account.

3. Aadhaar number should be linked to your account.

4. The mobile number linked to your Aadhaar should be in working condition.

How to open SBI PPF Account Online?

Now, SBI customers can open PPF account online in SBI conveniently anytime anywhere using SBI internet banking and mobile banking.

The entire process of opening the account is very easy and can be completed with a few clicks without any hassle.

Fill and submit the Public Provident Fund opening form online. Print the form and visit the branch with KYC documents and a photograph to open the SBI PPF account online.

These are some simple steps you have to follow to open it State Bank of India online.

Process for opening SBI PPF Account Online

Follow the steps given below to apply for SBI PPF online.

1. Visit SBI official website (https://www.onlinesbi.com/).

2. Log in to your SBI net banking using your credentials.

3. Now, go to the “Request & Enquiries” tab in the top right corner of the main menu. Click on the “New PPF Account” option from the drop-down menu.

4. After clicking on it, a new page will open. You can see the details of your savings account.

If for a Minor

5. If you are opening a PPF in the name of a minor (age below 18 years) then tick the option and enter the name of the minor, his/her date of birth, and his/her relation with the applicant.

If not for a Minor

6. If PPF is not to be opened in the name of the minor, then enter the 5 digits code of your home branch or of that branch of the SBI in which you want to open your Public Provident Fund scheme. If you don’t know the branch code, click on the branch locator and get it.

7. Now, enter the branch code. The name of the branch will appear here after clicking on “Get Branch Name”.

8. Next, enter the names of the nominees. You can add up to 5 nominees for a Public Provident Fund account. If the nominee is minor then put his/her date of birth here. You can also put the percentage of the amount you want to allocate to each nominee.

9. Now click on the “Submit” tab to open a Public Provident Fund account in SBI online.

10. After clicking on the submit tab, the message will appear that your application has been successfully submitted.

11. Print PPF opening form from the tab “Print PPF Online Application Form”. Please note that the SBI PPF account opening form online will be deleted after 30 days from the date of submission.

12. Visit the branch with KYC documents and a photograph within 30 days. Paste a photo on the form and write the amount you want to deposit. This is “how to open SBI PPF account online”.

Provision for Standing Instructions for periodical credits to PPF scheme

You can give Standing Instructions on Savings or Current account for crediting the PPF scheme.

Standing Instructions can also given online for crediting on a periodical basis through State Bank of India online banking.

ECS mandate is also available for subscription to the Public Provident Fund scheme if you have an account with other banks.

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SBI PPF Account Details

Important SBI PPF account rules to note before opening a PPF account in SBI.

1. Only one PPF can be maintained by an Individual at any point in time. Except for an account that opened in the name of a minor child.

2. PPF Investment Limit: The minimum deposit amount is Rs. 500/- annum and the upper ceiling limit is Rs. 150000/- annum.

3. The tenure for this scheme is 15 years. It gets matured on the completion of 15 years from the end of the year in which it was opened.

4. You can extend the tenure for one or more blocks of 5 years each after the maturity period.

5. The rate of interest determined by the Government of India every quarter.

6. Loan facility is available between the third financial year to sixth financial year.

7. You can make one partial withdrawal every year from the 7th year onward subject to certain conditions.

8. Income Tax benefits are available U/S 80C of the IT Act.

9. Nomination facility is available.

10. You can transfer your PPF scheme to other branches/ other banks or Post Offices.

SBI PPF Account Interest Rate

The SBI PPF Account rate of interest determined by the Government of India quarterly. Currently, the SBI PPF account interest rate is 7.9% per annum. Interest calculated between the 5th day and the end of the month on the minimum balance. The interest amount paid on 31st March every year.

SBI PPF Account Login

You can access your account through SBI Net Banking. State Bank of India offers you the convenience of SBI PPF account balance check online. You can transfer funds from the linked SBI savings account online.

You can also view your SBI PPF account statement online in your Net Banking Account. This is how to check SBI PPF balance.

SBI PPF Account Form

Click here for the PPF form.

SBI PPF Account Calculator

Click here to use the SBI PPF Account calculator.

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Frequently Asked Questions

1. What is PPF scheme in SBI?

Public Provident Fund (PPF) is a long-term investment scheme offered by the Government of India through post office, public and private sector banks. SBI is one of the banks offering this scheme to the public. Both minors and adults can open a PPF account in the State Bank of India.

2. What is PPF Rate in SBI?

At present, the SBI PPF account rate of interest is 7.10% per annum compounded quarterly.

3. Is SBI PPF safe?

Yes, the money invested in this scheme is safe and secured. Moreover, you can get Tax Exemption Benefits on the deposited amount.

4. Does SBI charge for PPF account?

No, there is no extra charge for this account in the State Bank of India. The interest rates for PPF are determined quarterly. At present, the PPF Interest Rate is 7.10%.

5. Can I withdraw PPF after 5 years?

Yes, you can withdraw the money partially after completing five years. The permitted withdrawal amount is up to 50% of the total account balance at the end of the fourth year.

6. Can I have two PPF account?

As per the PPF Scheme rules, you cannot have more than one account

7. Is PPF interest taxable?

PPF scheme is a long-term investment scheme that offers an attractive rate of interest. The interest earned on PPF and the PPF returns are not taxable under Income Tax.

8. What is maturity of PPF account?

PPF is a long-term investment scheme and it matures in 15 years.

Final Thoughts

PPF is a popular scheme for creating a retirement corpus for decades. It is the safest saving tool available as it is backed by the Government of India. The interest earned is tax-free.

Currently, the State Bank of India allows you to partially complete the process for opening SBI PPF Account online. I hope now you can open your PPF in SBI easily without any difficulty.

Note: This post was originally published on July 30, 2018 and has been completely updated for accuracy and comprehensiveness.

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