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How to open PPF account online in SBI


Introduction:

PPF (Public Provident Fund) is a very popular scheme in India provided by the government of India. PPF was first implemented in India in 1968, and the aim was a small contribution towards investment and returns. This scheme has a very attractive compound interest rate with good tax benefits. The interest income and maturity income from the PPF are tax-free under Section 80C, or Income Tax Act 1961.

Why is PPF important?

PPF (Public Provident Fund) is important in several ways.

  1. PPF provides very attractive interest rates (current interest rates are 7.1% per annum).
  2. The income from PPF, either interest received or maturity amount received, both are tax-free income under Section 80C.
  3. PPF is backed by the government of India, so it is risk-free. Anyone who doesn’t want to take a risk can invest in this fund.

Key features to open PPF account with SBI

  1. Current interest rate of PPF in SBI bank is 7.1% per annum
  2. Minimum investment is ₹12500 yearly and maximum limit is ₹150000 in a year
  3. Minimum investment you can start is ₹500 per month.
  4. SBI PPF account can be open by Internet banking / Yono App or by offline form submission in branch.

How to open PPF account online in SBI

The SBI PPF account opening process by online is very easy. By following below steps you can easily open PPF account online in SBI.
Pre documentations requirement
  • Your Aadhaar Card Should be linked with your bank account.
  • Your mobile number linked to your Aadhar, should be active to receive OTP.

Step by step process to open PPF account online in SBI account.

  1. Login to your SBI account by Internet banking with your login credentials.
  2. Navigate to “Deposit and Investment” section and click on it.
  3. Find the Public Provident Fund (PPF) in the list and click on that.
  4. Now you will see some options you have to choose “PPF Account Opening without visiting Branch”
  5. Click on Apply for PPF account
  6. Now you will redirect to general instructions and terms page you have to accept the terms and proceed.
  7. Now you have to select your account
  8. After above step you will see a form in which you have to select your home branch and enter your address and enter your initial deposit amount and enter nominee details.
  9. Now you have to select on term and condition and confirm that you don’t have PPF account with another banks.
  10. Click on submit and your application will be reviewed by your bank in 24 hours and PPF account will be opened.

FAQ’s on PPF account

Q1. What documents I need to apply for PPF account?
Ans. You have Aadhaar, PAN, Aadhaar Linked Mobile number.
Q2. Can 1 person open more then 1 PPF account with another banks?
Ans. No, one person can only open 1 account in their name.
Q3. What is the maximum limit an individual can deposit in PPF account in 1 year?
Ans. An Individual who have PPF account can deposit maximum 1.5lacs in a year.
Q4. Can women change their name in PPF account after marriage?
Ans. Yes, women’s can change their name in PPF. However she have to submit necessary documents for name change.
Q5. Can minors open PPF account?
Ans. No minors cannot open PPF account.
Q6. Is Income from PPF tax free?
Ans. Yes income from PPF is fully exempted from income tax.

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