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SBI PPF Account

The SBI PPF account is offered by one of the most trusted and most popular public sector banks of India, State Bank of India. Due to the advent of technology in banking operations, it is now possible to conveniently open the account online at the leisure of your home. It offers flexibility to transfer the scheme to the post office PPF, any other SBI branch or any other bank. The scheme was introduced by National Savings Organisation in the year 1968 to promote and mobilize small savings. The main aim behind the scheme was to inculcate a habit of saving amongst the citizens of the country, so that these savings can be used in times of emergency or achieve futuristic goals. Earlier in India, if someone had to open a PPF account, it could only be done through post offices. To bring more convenience and awareness of saving and reach of PPF, a number of authorised banks were allowed to give the facility of opening a PPF account for the customers. Banks are able to provide more advanced services, like a deposit in the PPF account can be done online. But in case of a post office, an online cash deposit facility is not available.

PPF (Public Provident Fund) has become a popular long term investment option scheme. PPF is backed by the Government of India, thereby ensuring the security of returns and also provides an attractive rate of interest. The returns of the PPF are exempt as per the provisions of Income Tax Act which gets updated from time to time. Presently, investors can save tax on the contributions made towards PPF to a maximum of INR 1, 50,000 and can also use facilities like a loan, withdrawal of funds and extension of account. PPF is a great option for everyone to get enrolled, especially for self-employed persons or people working in the unorganised sector where a pension or saving schemes are not part of the annual salary of a person.

SBI PPF Account Features & Benefits

Nomination Facility

Customers are offered nomination facility from the SBI PPF Scheme. The nomination in the scheme can be done in terms of a number of PPF shares as well.

Tax benefits are given on SBI PPF scheme

SBI PPF scheme offers one of the best tax benefits as compared to any other similar scheme. The interest earned in the PPF scheme is totally exempt as per the provision mentioned in Section 88 of the Income Tax Act, 1961. The outstanding PPF amount for the account holders is also exempt from the wealth tax payment. The tax feature and benefit makes the PPF scheme one of the most beneficial, secure and lucrative savings schemes in the market. There is no tax rebate offered if the amount invested in PPF account is more than Rs.1.5 lakh.

Loans facility and partial withdrawals against SBI PPF account

SBI PPF account gives a very useful facility of taking a loan against the PPF account. The scheme also allows for partial withdrawal for immediate liquidity needs by the customer. The loan amount and the partial withdrawal is dependent and conditioned on the age of the PPF account on any given date. The partial withdrawal and loan facility are basically as per the sole discretion of the bank.

Transfer flexibility of the SBI PPF Account

The SBI PPF account offers flexibility to transfer the PPF account to post office PPF, any bank or any other branch of SBI as per the request of the customer. There is no service charge or fees levied for the transfer of PPF account and it is totally free of cost for the customer.

Interest Rate on SBI PPF Scheme

SBI PPF scheme gives one of the best interest rates of the government-backed savings scheme to the PPF account holders. Presently, as per 1st April 2019, the SBI rate of interest is 8.0% per annum, since there is no tax on the interest earned the interest translates into one of the best interest rates than any other investment. SBI pays the interest for the entire year on the financial year end date which is the 31st March of every year. The appropriate rate of interest is calculated on a minimum balance held in the account between the date of 5th and last date of the month.

Below are some of the historical interest rates

PeriodPPF Interest Rates
1st April, 2019 onwards8%
1st January, 2019 - 31st March, 20198%
1st October, 2018 - 31st December, 20188%
1st July, 2018 – 30th September, 20187.60%
1st April, 2018 - 30th June, 20187.60%
27th December 2017 – 31st March, 20187.60%
01st October 2017 to 26th December 20177.80%
01st July 2017 to 30th September 20177.80%
01st April 2017 to 30th June 20177.90%
01st January 2017 to 31st March 20178%
01st October 2016 to 31st December 20168%
01st July 2016 to 30th September 20168.10%
01st April 2016 to 30th June 20168.10%
01st April 2015 to 31st Mar 20168.70%
01st April 2014 to 31st Mar 20158.70%
01st Apr 2013 to 31st Mar 20148.70%
01st Apr 2012 to 31st Mar 20138.80%
01st Dec 2011 to 31st Dec 20128.60%
01st Mar 2003 to 30th Nov 20118%
01st Mar 2002 to 28th Feb 20039%
01st Mar 2001 to 28th Feb 20029.50%
15th Jan 2000 to 28th Feb 200111%

How to Open SBI PPF Account Online?

Step 1

You will need to login to the SBI Internet banking portal on the website onlinesbi.com. On the home page, you will need to find ‘new PPF account’ which is under the e-services section. Note: After logging in to the SBI portal the 'New PPF Account' link is displayed on the tabs which are placed on the left hand side of the page.

Step 2

It will lead you to the 'New PPF Account' page on the SBI online portal. Your bank details information, along with the PAN (permanent Account Number), will be displayed in this page. Note: The SBI portal on login will display the primary details of the customer, including PAN

Step 3

Existing SBI customers can also open another PPF account in the name of a minor. For this, they will need to enter the SBI branch code (5 digit code) in the given field. SBI's online portal also provides a facility to its customers to look for the branch code of their preferred SBI branch via the 'branch locator' tool.

Step 4

Once the customer enters the respective branch code, the online portal automatically displays the desired SBI branch office name. Note: Customers need to put the branch code in the respective section to proceed.

Step 5

In this step, the customer needs to provide names of the beneficiaries or nominees to the PPF account. Note: The customer is allowed to assign more than one nominee to the SBI PPF account.

Step 6

After entering the nominee information, proceed by clicking on the 'submit' tab. After successfully submitting the nominee information, the SBI portal will provide a unique reference number.

Note: The reference number will be displayed at the end of this procedure by the SBI portal.

Once the above steps are complete, the portal will display an account opening form. The customer will need to click on the tab 'Print PPF online application'. Take the printed form to the nearest SBI branch along with KYC (Know Your Customer) documents and a photograph within 30 days to finish the SBI PPF application process. Kindly note that the A/c opening form on the SBI portal will be deleted after 30 days from the date of submission.

After partially filling the form with the necessary details in the SBI portal, customers can print the form, fill out the PPF amount, attach a photograph and enter the other required important information of the applicant. Remember to sign the form and submit it at the nearest bank branch together with the KYC documents.

The application also comes with additional form E, meant for stating any nominees for a new PPF account. The applicant is also required to share information with regards to any other PPF account that he/she may already have held in the past.

In the year 2019, investments in PPF are attracting an impressive interest rate of around 8%. Also, PPF gets the benefit of EEE (exempt-exempt-exempt) in terms of income tax implications - contribution, interest, and maturity are all tax-free in PPF investment. Interest rate charge on PPF and other small financial savings scheme are presently being updated every quarter since April’16. Although, it was calculated on a yearly basis in the past.

SBI PPF Account Opening Form

To open a PPF account, the applicant is required to fill a PPF form and submit it along with some other documents which are required by the bank. Not all branches of SBI may have account opening facility for PPF, and hence the applicant is required to find out the nearest branch from the website or call the customer service. Once the properly filled PPF form and relevant documents are submitted by the applicant, the PPF account will be opened by the bank. The bank will provide a PPF passbook to the account holder. The passbook will contain details of all the PPF transaction done by the account holder.

Who are eligible to open a PPF Account?

A PPF account can be opened by Indian residents of age 18 years and above. The account has a limit of one account per person. Parents can open a PPF account in the name of their children. However, grandparents cannot open the PPF account in the name of their grandchildren.

A PPF account cannot be opened by Non-residents of India (NRI). However, NRI of Indian origin who had opened an account before moving to another country can continue with their account until the lock-in period is active i.e. 15 years.

A PPF account cannot be opened by the Hindu Undivided Family (HUF). However, accounts opened before 13th May 2005 are allowed to continue without further extension to the maturity period.

The account opening form for SBI PPF account is to the point and simple form which requires applicants to fill in some basic details like

  • Name of the applicant
  • An initial amount of deposit by the applicant
  • Signed verification/declaration for PPF account opening
  • Past PPF account details held by applicants
  • Signature of the applicant to confirm the compliance to all regulations of the PPF scheme

Things to Know While Opening SBI PPF Account

  • The Indian law states that only one PPF account is permissible per citizen of India
  • A minor PPF account cannot be opened online. The applicant will need to visit the branch of the SBI in person.
  • A NRI is not allowed to open a PPF account.
  • A nomination update/change request can be done by visiting the nearest SBI branch.
  • Joint-account holders are not allowed to open a PPF account on online SBI portal.
  • Applicant will need to visit the branch office of SBI to get the PPF account passbook
  • INR 100 is the minimum initial deposit required to open the PPF account

Documents Required for Opening SBI PPF Account

The documents required for opening SBI’s PPF account is as follows

  • SBI PPF account opening form
  • Photo Copy of PAN card
  • ID proof of the applicant
  • Nomination Form
  • Passport size photograph
  • Residence proof of the applicant

SBI PPF Account Rules & Guidelines

SBI has certain rules and guidelines which apply to the opening of SBI PPF account. SBI has laid these PPF rules and guidelines to make customers aware of the various aspects of SBI PPF account.

Period/duration of SBI PPF scheme

The duration of SBI PPF scheme is for an initial period for 15 years. The account holders can request an extension in the block of 5 years. The PPF account holders are permitted to request for one or more such blocks of 5 years.

Eligibility Criteria to avail SBI PPF Scheme

All Indian citizens are allowed to open SBI PPF account in their own name or in the name of a minor. The PPF scheme is no longer permitted to Hindu Undivided Families to avail a single PPF scheme in its name.

Investment limit for PPF account

PPF account requires a minimum investment of INR 500 and the maximum investment that is permitted to deposit in the account is capped at INR 1, 50,000 to enjoy the benefits. If the account holder deposits an amount higher than INR 1, 50,000 in a financial year, it will not earn interest or get a tax rebate, and hence it is not recommended for investment. The deposit in PPF account can be made in one single go or in twelve instalment in a year.

FAQs on SBI PPF Account

How to Deposit Money in SBI PPF Account?

To deposit money in SBI PPF account, there are two options for the PPF account holder. One is to deposit online by logging on to the SBI Online portal, and other is offline by visiting the nearest SBI branch office to make a deposit.

Online deposit of money

Money can be deposited online in the PPF account through the SBI Online Portal. The PPF account holder just needs to visit the SBI online banking website and log in to the SBI online bank account. Once logged in, the process of transferring the money is similar to how you do for any other bank. The account holder is required to enter the PPF number as the account number in order to transfer money to the PPF account. The name of the payee should be similar to that mentioned in the PPF account.

Offline deposit of cash

Offline deposit in the SBI PPF account can be made by visiting any of the SBI bank branches. The deposit can be made simply by filling in the payslip at the bank or giving an account payee cheque. However, if the mode of payment is done via cheque, then the cheque will take a couple of days to clear in order to reflect the deposit amount in the PPF account.

How to Transfer from Post Office PPF Account to SBI?

PPF Account Transfer from the post office to SBI and vice versa is a fairly simple process. The PPF account holder just needs to raise a transfer request with either the bank or post office and the transfer will be processed. For this, the PPF account holder will need to submit a transfer request form along with form SB-10b to the post office to get the PPF account transferred to SBI. Identity proof is also necessary to be submitted to the postal department. The transfer request will then be accessed by the postmaster who will send original PPF account documents like certified copy of the account, account opening application form, specimen signature, nomination form, etc. to the preferred SBI branch office where the PPF account holder wants to open the PPF account. A bank cheque or demand draft of the PPF amount will also be sent to the SBI bank branch.

Once the above-mentioned documents are received by SBI, it will ask the account holder to submit a fresh PPF account opening form along with certain required KYC documents. The bank will then review the documents submitted and open your PPF account. A new passbook will be issued by SBI which will not carry any of your old PPF transaction details at the post office and it will only have details of the PPF transactions made in the new PPF account with the SBI.

Can we open SBI PPF account online?

Yes, SBI provides the facility to open a PPF account with them online.

What is PPF account in SBI?

PPF is Public Provided Fund account in SBI. The account has an initial lock-in period of 15 years. Loan facility and partial withdrawal are allowed in the PPF account subject to certain conditions. The PPF account in SBI can be opened online or by visiting at the branch office of SBI. The list of the branch offices of SBI can be obtained online through their official website.

Can SBI PPF account be accessed online?

Yes, it is possible to access the PPF account by the PPF account holder by simply going to SBI official website. The account holder will need to login to the online portal to access their PPF account statement or deposit money in their PPF account.

Can I withdraw money from SBI PPF account online?

PPF account holder has the liberty to make partial withdrawals which are subject to terms and conditions. The account holder is allowed to make one withdrawal every financial year after the completion of the 7th year, but the withdrawal amount should not surpass the 50% of the account balance.

How can I withdraw my PPF amount from SBI?

Complete withdrawal of the PPF amount can be done only on maturity or on the death of the account holder.

Can I close my SBI PPF account before maturity?

There was an amendment made in the Public Provident Fund Scheme in the year 2016 to support the premature closure of the PPF account. An account holder can opt for the closure of the account before maturity after completion of 5 years for medical treatment of family members or for the purpose of funding higher education. The premature closure invites a penalty of 1% of the balance of the account.

Can we transfer money to SBI PPF account online?

Yes, transfer of money to SBI PPF account can be done online by using the internet banking services of the SBI.

How can I transfer my PPF account in SBI?

To transfer the PPF account in SBI a transfer request needs to be raised at the post office.

Can I deposit PPF amount online in SBI?

Yes, it is possible to deposit PPF amount online in SBI using the online portal of SBI.

What is interest rate of PPF in SBI?

The present interest rate of PPF in SBI is 8% per annum.

Can I extend PPF account online in SBI?

Yes, it is possible to extend PPF account online in SBI by submitting Form H in bank within 1 year from the date of the maturity of the account.

How can I register my PPF account in SBI online?

To register the PPF account online, the account holder will need to register with their details on the official website of the SBI.

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