How to Open a PPF account at SBI Bank

by Manish Chauhan on February 4, 2010 Most of us want to open PPF account, but keep postponing it just because we don’t want to take action. Most of the people want to open their PPF accounts with the most trusted bank in India , which is State Bank of India . Let us see 3 easy steps of opening a PPF account in SBI branch, the whole process does not take more than 30-45 minutes if you prepare in advance and go with all the documents required and there are no blockings in between . The biggest advantage of opening the PPF account with SBI is the online transaction facility you can use to deposit in your PPF account online and dont have to rush to the branch every now and then . Read why you should open a PPF account even if you dont need it right now .

3 Steps of Opening SBI PPF Account

Choose a nominee and get a witness signature. Usually it may take about 20 minutes or so. When you do this online for the first time. How to Link your Online SBI Account to SBI PPF account for Online Transaction If you have a online SBI account. However there are two disadvantages . A standing instruction maybe issued from your online account for auto-credit to PPF. Usually any ‘large’ branch with lots of customers should do. 3) Get PPF Passbook A pay-in slip needs to be filled and the initial subscription needs to be credited into your account. Keep originals of proof in hand for verification if needed. This is a major drawback of SBIPPF (and post office) accounts. The bank should now be able to open the account. Usually newer and smaller branches may not have this clearance. you can add the PPF account as a third party account for transfer. Now you have to submit anyone of following Proofs. Locate your nearest SBI Branch using this 2) Procure and submit account opening form and Identity/address Proofs It would only 3 minutes to fill. go to the bank and update your PPF passbook and check if the transaction has occurred correctly. There are no processing charges for transfer. • • • • • • Passport Pan card Driving license Voter id Ration card Two Passport Size Photographs Any government issued identity or address proof should work. your PPF account is opened now . This is all . PPF rules can be found on the back. One doesn’t need to have a Saving Bank account in that branch.1) Choose a SBI branch which is authorized to go government business. A passbook similar to a Saving Book passbook will be issued with your photo affixed and the nominee’s name stated. As mentioned above the PPF account can be in any SBI branch. Thats it. This has to be done since you cannot look at the amount in the PPF account as yet in SBI.

Features Posted In Income Tax | 317 Comments » The Public Provident Fund is the darling of all tax saving investments.000/-. This is a new rule and is not yet printed in the PPF passbooks! See Here . You can be sure no one is going to run away with your money. So take care of this before issuing a standing instruction. Alist of these subsidiary banks is available on the bank’s Web site. You need to go to the bank to cancel the standing instruction . 70. (not sure if the attestation is really required) [ Update 5th Feb . it is also totally safe. Here. How to Transfer your PPF account from One Bank to Another • • Go to the branch where you want to transfer your PPF account and deposit an application with your PPF passbook takes 10-15 minutes How to Submit Proof for Tax Take xerox of the PPF passbook updated with all transactions and get it attested in the branch. The total tax benefit is also the same.You can even visit the nationalised bank in your neighbourhood. we summarise the scheme. Selected branches of nationalised banks . the interest you earn on it is tax-free. SBI’s subsidiary banks can also open accounts. 1 . Here and Here for more detail Public Provident Fund (PPF) scheme : Investment Limit. To open a PPF account. Since it is a scheme run by the Government of India. You cannot subscribe a lower amount if you need the cash for emergency use (this situation wont arise if you had an emergency fund ) 3. Income tax benefit.No wonder! You invest in it and you get a deduction on your income. drop by a State Bank of India branch.1. Rarely there maybe system failures and the standing instruction may not get honoured. 2. thanks for Mithilesh ] Other points to Consider Subscriptions must be made before the 5th of every month for the amount to taken into account for interest calculation for that month. If you want to open an account in the name of a minor in addition to yours the total limit of subscription is Rs. There are only 12 credit transaction allowed per year. Besides. So you need to check if it has occurred. tell you how to open a PPF account and what to expect.

On the death of the account holder. your children cannot make any additional contributions. you earn the rate of interest and can also make fresh deposits.is fixed by Public provident Fund Act not by Income Tax law.000 in your account and Rs 70. you will be able to withdraw it 15 years later. If there are no nominees. and you will be refunded only the principal amount. The maximum amount you can deposit every year is Rs 70. That means your PPF matures on April 1. interest accrued. Let’s say you open an account for your minor child. it is detected that you have two accounts. 7. attach a photograph and submit your Permanent Account Number. Senior Citizen Savings Scheme 2004 (SCSS) any money deposited in these accounts by means of a cheque.The head post office or selection grade sub-post offices also open PPF accounts. When you open an account. on your death.00. at any point. after 15 years of the close of the financial year in which you opened the account. So. The PPF account is valid for 15 years.can also open accounts. the date of tender of cheque or draft at the accounting office was treated as the date of deposit of PPF. But. if you opened it in FY 2006-07 (this financial year).000/. in case of other small savings schemes like Post Office Savings Scheme (POSS). The only limitation is that you cannot withdraw it until seven years are completed. Deposit date in Cheque payments :-Till recently. If. As Limit of Maximum Investment in a year of 70000/. The account can only be opened in one person’s name. In this case you can in my opinion take the maximum benefit of Rs.U/s. It can be extended for a period of five years after that. You can deposit Rs 70. The interest you will earn is 8% per annum. . You can take a look or download the form from SBI’s web site. You can open one account for yourself and others for your child/ children. Once your account expires. if needed. 4. after which 50% of your deposits can be withdrawn. the second account you have opened will be closed. nominees cannot keep the account going by making contributions. in case of a PPF when a subscriber used to make deposits by local cheque or demand draft. starting March 31. that is. 2. voter’s identity card or passport. 1. withdrawals and loans are recorded. You can make up to 12 deposits in one year. The entire balance can be withdrawn on maturity.000. the legal heirs get the money. 3. not the interest. you can open a new one. You are free to nominate one or more individuals. 2007 (end of this financial year). 6. The minimum amount to be deposited in this account is Rs 500 per year. 80C. You will have to fill up a form. You cannot open a joint account with another individual. You can have only one PPF account in your name. Along with the form. 5. In contrast. provided the said cheque was duly honoured on presentation for encashment.000 in your child’s account. you will be given a passbook (just like a bank pass book) in which all subscriptions. If you do not have a PAN. then furnish an attested copy of either your ration card. You don’t have to put in this money at one go. the date of encashment of the cheque is treated as the date of deposit. During these five years. 2022.

9. but both cannot open the account for same child. compounded annually No monthly/yearly payments Minimum investment: Rs 500 (required annually) . in order to remove inconsistency between PPF and other small savings schemes and to bring in uniformity in the reckoning of the date of deposit of all the schemes. What are the differences and similarities between the National Savings Certificate (NSC) and PPF? National Savings Certificate (NSC) Interest Paid: 8%. You can put in as little as Rs 500 a year to keep it going.Thus. open a PPF account. the government has issued necessary instructions through the circular to banks / other intermediaries which hold PPF accounts for the individuals to treat the date of realisation of the cheque or demand draft by the subscriber as the date of deposit. Opening an account for a minor :-There have been certain practical hurdles in respect of opening of accounts for minor vis-à-vis some intermediary agencies. then the same will be treated as deposits for the following financial year. This clarification reiterates that as per the rules under PPF scheme. an individual may on his own behalf or on behalf of a minor of whom he is a guardian. compounded halfyearly No monthly/yearly payments Minimum investment: Rs 100 Maximum investment: No Limit Maximum investment: Rs 70. 8. Public Provident Fund (PPF) Interest Paid: 8%. Maximum limit: Rs 70. available. either father or mother can open PPF account on behalf of his / her minor child.000 Duration of investment: 6 years Duration of investment: 15 years Can be used as a security for mortgage Cannot be used for such purposes and other purposes Tax benefit under Section 80 ‘C’ Tax benefit under Section 80 ‘C’ available. Further.000 investment in PPF) Good medium-term investment option Good long-term investment option Interest if fully Taxable Interest is fully Exempt Do consider opening a PPF account if you do not have one.000 (limit of the Maximum limit: Rs 100. This would also have ramifications in respect of the tax deduction being claimed by the individuals in a particular tax year. This issue becomes particularly relevant in respect of deposits made towards the end of the financial year by cheque / demand draft because if the same is not realised by March 31.

500 and maximum is Rs. • • • • • . Deposits completely exempted from wealth tax. Twelve deposits can be made in a financial year. Withdrawal is permissible from seventh financial year from the year of opening. Amount of withdrawal is limited to 50 % of balance at the end of the fourth preceding year less amount of outstanding loan or 50% of balance at the end of immediate preceding year of withdrawal less amount of outstanding loan. Loan amount is limited to 25 % of at the end of two years preceding. • • Minimum deposits in a year is Rs. for further blocks of 5 years. 70. The account can also be continued with or without subscription. • Fresh loan is not allowed when previous loan or interest thereof is outstanding. Interest is completely tax free under section 80 of IncomeTax Act. • Loan is admissible from the third year. A subscriber can close the account in the 16th financial year.Features: • • Only one account can be opened in the name of a person. • Interest is charged at the rate of 1% if prepaid within 36 months and at 6% on the outstanding loan after 36 months. if any whichever is less.000/-. limited to one in a financial year. Deposits are qualified for Income Tax rebate under section 88 of Income Tax Act.