PPF is a popular long term investment option that comes with EEE status. That is, in this investment option, the investor gets income tax exemption at three levels. At the time of first investment, then on interest income and then on maturity amount. PPF offers a higher interest rate than its customers. Apart from the post office, many banks like SBI also offer investment facilities in PPF to their customers.
If you want to invest in PPF through SBI, you will have to fill in form-A and submit it to any branch of SBI with necessary documents. The PPF account can be opened in one branch, so you need to inform the branch in form-A where you want to open your PPF account. Only one PPF account can be opened by a person. However, the account can be opened on behalf of the minor.
These documents will be required to open a PPF account with SBI:
For opening a PPF account, along with Form-A, a nomination form, PAN card copy / Form 60-61, a passport-sized photo, and a copy of ID proof and residence certificate as per the KYC rules of the bank is required.
Eligibility:
Any adult Indian citizen can open a PPF account. Also, the PPF account can be opened by an adult person on behalf of a minor. On behalf of a minor child, his mother or father can open PPF accounts, but both parents cannot open PPF accounts for the same minor child. Both parents cannot open PPF account for the same minor child. For a minor boy or girl, his grandparents cannot open a PPF account. However, on the death of the parents of minor children, grandparents can open a PPF account on behalf of the minor as a guardian.
Interest rate:
The rate of interest on PPF is decided by the government every three months. At present, the interest rate on PPF is 7.1%, and the PPF account is 15 years.
Contribution:
The PPF account can be invested in a lump sum or a maximum of 12 installments. A minimum investment of Rs. 500 is allowed in the PPF account. At the same time, a maximum of Rs 1.5 lakh can be invested in a financial year. If an investor does not invest even a minimum of Rs. 500 till the completion of the financial year, a fine of Rs. 50 per annum is imposed.
PPF Calculator:
Investors can use the PPF calculator to calculate PPF maturity amount, interest income, loan on PPF, and tatkal PPF withdrawal amount. Using the SBI PPF calculator, you can easily calculate your returns according to the available interest rate and duration. Besides, many other PPF calculators are also available online. SBI offers for PPF from both its customers and non-customers.
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