Are you thinking to put your money in a PPF account? If yes, the next question that come to your mind is: Where to open a PPF Account? Which bank is the best to open PPF account? This is what this post describes in detail. PPF Account in SBI or SBI PPF Account is the most common answer that you will probably get.
PPF or Public Provident Fund: A Glimpse
PPF or Public Provident Fund has been the most preferred choice of risk averse investors. If you think of having a safe and risk free investment journey, PPF is your destination. PPF has been a popular long term investment since decades.
PPF Scheme was introduced by National Savings Organisations way back in 1968 to encourage the trend of small savings amongst investors. You get decent and fixed returns plus some tax benefits, if you invest in PPF or Public Provident Fund.
You can open a PPF Account in Post offices or any of the authorised PPF banks as per your choice. But, you tend to get confused while selecting the best bank for opening your PPF Account.
SBI, PNB and ICICI are doing a good job in extending reliable PPF services. Some banks offer online transaction facility that makes very convenient for the user. Hence, banks that have started PPF online transfer facility are a preferred choice for investors.
But, many people are still not aware of the PPF account opening process. So, we thought of sharing this easy to understand and simple process of opening your PPF account in one of the most popular banks: your SBI PPF Account. The PPF account opening process shall somewhat be similar in other banks as well.
Don’t miss to have a look at New PPF Rules: Changes introduced in 2019
SBI: A Leading Name in Banking field
SBI or State Bank of India is a leading public sector bank in India. It has been trusted since ages not only for its services but also when it comes to opening your PPF Account. Right! Just few small steps to be followed (discussed later in this blog post) and you are done with the PPF account opening procedure.
Being the most trusted Indian bank, it builds an assurance and a feeling of safety amongst investors.
PPF Account Features & Benefits:
PPF is a fairly long term investment option spread over 15 years period. The early withdrawal is possible subject to certain conditions. You can invest any amount ranging from Rs.500 to a maximum of Rs.1.5 lakhs in your PPF Account. The amount can be deposited in lump-sum or in instalments (upto 12 instalments) during a financial year.
You also enjoy tax benefit in the form of Tax deduction under Section 80C for the amount you contribute towards your PPF account in a financial year. The interest earned on PPF is also a tax free earning. Moreover, the maturity amount is also exempt from tax. That’s the best part that usually attracts investors towards this investment alternative.
PPF Interest rate: SBI & Other Banks/Post Offices
The PPF Account interest rate is same for all the authorised banks and post offices. The interest rate is decided by Government and is revised from time to time.
The PPF interest rate for quarter Jan to March’19 is 8% p.a.
Here is a table showing the PPF interest rate for the past few quarters.
|Period||PPF Annual Rate of Interest|
|1st Jan'20 to 31st March'20||7.9%|
|1st Oct'19 to 31st Dec'19||7.9%|
|1st Jul'19 to 30th Sept'19||7.9%|
|1st Apr'19 to 30th Jun'19||8%|
|1st Jan'19 to 31st March'19||8%|
|1st Oct'18 to 31st Dec'18||8%|
|1st July to 30th Sept'18||7.6%|
|1st Apr'18 to 30th Jun'18||7.6%|
|1st Jan'18 to 31st March'18||7.6%|
|1st Oct'17 to 31st Dec'17||7.8%|
|1st Jul'17 to 30th Sep'17||7.8%|
|1st Apr'17 to 30th Jun'17||7.9%|
|1st Jan'17 to 31st Mar'17||8%|
|1st Oct'16 to 31st Dec'16||8%|
|1st Jul'16 to 30th Sep'16||8.1%|
|1st Apr'16 to 30th Jun'16||8.1%|
|1st Apr'15 to 31st March'16||8.7%|
SBI PPF Account Opening Process
1. PPF account opening form:
You need to fill the requisite details in Form A, sign it and submit at one of your nearest SBI branches. Just remember to specify the bank branch clearly where you wish to have your PPF Account opened.
2. Submit necessary documents:
You shall be required to provide necessary documents along with the completed PPF form like:
- Nomination form
- PAN card copy
- ID Proof & Address Proof : as per KYC norms
- Passport size photograph
Get your KYC completed and you are almost done with the PPF account opening process.
Important: You need to have a savings account first before opening your PPF Account in SBI. I came to know this, when I went to open my SBI PPF Account. But, don’t worry…its just a formality that turns to be a convenience later on! Since your savings account can be used to transfer money to your PPF account online.
If you already have a savings account in SBI, great! If not, opening a savings account with a minimum balance in SBI is no issue. You can do that very easily.
You may also like: SBI Credit Cards: Eligibility, Offers & Apply Online
SBI PPF Account: Is it the Best Bank to open PPF Account?
Although, you need to visit your SBI branch for PPF account opening in SBI and submit the relevant form and other documents manually. But, once your SBI PPF account is active, you can easily view your balance and transfer funds online to your SBI PPF account.
In simple words, SBI offers you the facility to transfer funds from your linked savings account online. Its just as simple as that! Not only this, you can also have a look at your SBI PPF Account statement through your net banking account.
To add upon to its advantages, you can also give standing instructions to transfer a fixed amount to your PPF account from your savings account. Now, how cool is that! This way you leave no chances to forget to contribute towards PPF account regularly.
Some may even refer SBI as the best bank to open PPF account due to the goodwill and reliability it has maintained over the years. No doubt, there are a number of other banks providing a similar service. But, SBI still remains the trusted choice of a majority of people when it comes to starting a PPF Account.
What are you waiting for? Have you planned your long term investments ? Go ahead…build up your retirement fund right now to lead a financially free life at a later stage.
Have you opened your PPF Account in SBI ? or Do you have it in some other bank account or post office ? Do you wish to go for secure investments with low but fixed returns ? or Are you ready to expand your risk horizon and look for riskier but high return investments ? After all, your investment choice should be based on your financial goals and priorities.