Public Provident Fund Scheme has been a popular tool for creating a retirement corpus for decades. The key reasons why millions of Indians have opted for this scheme are the risk-free nature of the deposit and its tax-free returns. Among the numerous public and private sector banks that provide the PPF facility, SBI Public Provident Fund account is currently one of the most popular choices.
The PPF account interest rate is uniform across all banks and post offices operating the scheme. The SBI PPF account interest rate is subject to change every quarter as per announcements made by the Ministry of Finance. In Q1 FY19-20, the PPF interest rate has been fixed to 8.0% per annum. The following are the historic PPF account interest rates:
|Time Period||Interest Rate (per annum)|
|Q1 FY 2019-20||8%|
|Q4 FY 2018-19||8%|
|Q3 FY 2018-19||8%|
|Q2 FY 2018-19||7.6%|
|Q1 FY 2018-19||7.6%|
|Q4 FY 2017-18||7.6%|
|Q3 FY 2017-18||7.8%|
|Q2 FY 2017-18||7.8%|
|Q1 FY 2017-18||7.9%|
*SBI PPF account balance is compounded annually.
SBI PPF Account Opening Procedure
SBI currently allows you to partially complete the PPF account opening process online. The online SBI PPF account opening system is at present available only to existing savings/current account holders. The following are key steps in the SBI PPF account opening process:
- Log on to your SBI banking account online/through mobile using your online/mobile banking credentials.
- Navigate to the “New PPF Account” link located under the “Request & Enquiries” menu.
- Subsequently you will be transferred to the online form page, which you need to fill out online.
- After filling out the online form, you will be provided a reference number and a link to download and print the online filled out form.
- Subsequently, you need to sign the applicable pages and visit your chosen SBI PPF account branch with self attested copies of applicable KYC documents (PAN, aadhaar, etc.) and photographs to complete the account opening process.
- In case you are applying for SBI PPF account online, you will have to fill out, sign and submit the PPF account opening form – Form A, which is available at SBI branches along with applicable KYC documents and photographs.
- Make sure you carry the original KYC documents at the time of branch visit for PPF account opening for verification purposes.
- The minimum initial account deposit amount of Rs. 500 also needs to be paid in cash/cheque at the time of account opening.
- Once your PPF account with SBI is up and running, you will receive a SBI PPF account passbook which details all credits and debits to the account and also contains key details such as PPF account number and branch code.
Opening of PPF account is easy but with there are certain conditions for eligibility. The eligibility criteria for opening a PPF account is as follows:
- An individual who is an Indian resident can open a PPF account in his/her name. There is no maximum age limit for opening a PPF Account in SBI.
- Hindu Undivided Family cannot open a PPF account.
- Non-resident Indians (NRIs) cannot open PPF Account.
- PPF account can be opened in the name of the minor by a parent/guardian. Only one such minor account is allowed per child.
Currently a new PPF account can be opened at designated branches of State Bank of India.
Features of SBI Public Provident Fund Account
Some of the key features and benefits of Public Provident Fund Scheme are mentioned here:
- Minimum annual investment required to keep a SBI PPF account active is Rs. 500.
- Maximum investment allowed in the SBI PPF account is Rs. 1.5 lakhs annually.
- PPF Deposits can be made in lump sum as well as through a maximum of 12 installments annually.
- SBI PPF account deposits can be made both via online route (mobile/internet banking) as well as offline route (cheque/cash).
- If you open a PPF Account, you are allowed to provide details of a family member as nominee for PPF account at the time of opening the account. The nominee details can be updated at any time in the future.
The following is a list of documents that you require for opening a SBI PPF account:
- Duly filled PPF Account opening form (Form A)/Signed Printout of Form A filled online.
- Passport Size Photographs.
- Self attested copies of identity proof – Aadhaar, PAN, Driving License, Voter ID, etc.
- Address Proof – Passport, Aadhaar Card, Electricity Bill etc.
Mode of Deposit in SBI PPF Account
The deposits can be made in SBI Public Provident Fund Account either through the online (internet/mobile banking) route or the offline route (cash/cheque deposit). The following are key details of the available modes –
- In online mode, the payment can be done with the help of internet banking subsequent to linking your SBI savings/current account with your PPF account.
- Online transfers to PPF account can also be made using ECS, NEFT and standing instruction.
- Offline PPF deposits can be made by cash, cheque or draft.
Loan Against PPF Account
As a SBI PPF account holder, you can opt for a loan against PPF account subject to certain key terms and conditions as mentioned below:
- Loan against SBI PPF account can be availed using PPF Form D after your account is at least 3 years old but no older than 6 years counted from the date of account opening.
- The max. PPF loan available under this scheme equals 25% of PPF account balance recorded at the end of the 2nd year.
- The loan interest rate is 2% over applicable PPF rate i.e. for PPF rate of 8.0%, loan against PPF rate will be 10.0%.
- PPF loan can be availed more than once subject to SBI regulations and complete payment of prior loan against PPF.
Partial withdrawal of PPF balance is also allowed from the 6th year onwards i.e. after completion of the 5th year counted from account opening date subject to certain key terms and conditions. The maximum amount that you can withdraw equals 50% of the money deposited in your PPF account at any given point of time.
SBI PPF Account Transfer Procedure
SBI allows you to transfer your PPF account from one SBI branch to another as well as to/from other banks and post offices. The following are key pointers of the SBI PPF account transfer procedure :
- You first need to approach your current SBI PPF account branch and submit an application for transfer of your PPF account.
- Your application needs to contain key details such as current PPF account number/branch as well as details of the bank/post office to which you want to transfer your account.
- You will also need to attach the passbook of your current PPF account to your application.
- Once the PPF account transfer is sanctioned, your current bank/post office will forward your documents to the new bank branch/post office you are transferring your account to.
- Subsequently, you need to visit the new bank branch/post office with original KYC documents to get details verified and get your new PPF account activated with the new branch/bank/post office.
- Once your new account is up and running, you will receive a new passbook from the bank/post office which contains key details of your account as well as credits/debits and account balance.
SBI PPF Balance Check
SBI allows you to check your PPF account balance as well as all account debits/credits through various online and offline routes. The following are some key pointers regarding checking your SBI PPF balance :
- In order to check your SBI Public Provident Fund account balance online, you need to first link your SBI savings/current account with your SBI PPF account and get internet/mobile banking activated.
- You can then log into your banking account online using net banking or mobile banking credentials to check your PPF account balance online.
- To check your PPF account balance offline, all you need to do is get your SBI PPF account passbook updated. It will contain all applicable credits/debits of your account till date.
SBI Public Provident Fund Extension
SBI allows its PPF account holders to extend their account tenure subsequent to maturity after completion of 15 years from the date of account opening. The following are some key facts to consider regarding extension of SBI PPF account:
- PPF extension application using PPF Form H needs to be submitted with the bank within 1 year of account maturity.
- SBI does not allow PPF extension in case of maturity of NRI-held PPF account.
- SBI PPF account tenure can be extended multiple times in blocks of 5 years after maturity of the account.
- You have the option of not making any additional contributions to your matured PPF account during the extension period.
- Your SBI PPF account will continue to earn interest at the applicable rate during the extension period.
SBI PPF Withdrawal
The following are some key features of the PPF account balance withdrawal process for SBI :
- SBI allows you to make withdrawals from your PPF balance every year from the 7th year onwards.
- To make a withdrawal from your SBI Public Provident Fund account you need to fill out and submit the PPF Form C available online and at the designated SBI PPF branches.
- The maximum amount you can withdraw is limited to the lower among – 50% of SBI PPF account balance at the end of 4th year that immediately precedes the year of withdrawal or the PPF account balance at the end of the previous year.
Key points to keep in mind while investing in SBI PPF
The following are some key points to remember when investing in SBI PPF :
- It is important to have a nominee to your SBI Public Provident Fund account. You can change/add nominees at a later date too.
- Currently the facility of making online payments into PPF accounts is restricted to accounts held with a bank.
- New PPF account cannot be opened by an NRI, but in case a resident becomes NRI prior to maturity of the account, such a SBI PPF account can be held till maturity without the option of extension.