Public Provident Fund was introduced under National Saving Scheme in 1968 to promote small savings in India. Since then, it has been one of the most preferred ways or small saving as well as tax saving. Moreover, PPF offers one of the highest rates of interest in all small saving schemes across and that makes it a number one choice for many. State Bank of India, being the leading public sector bank in the country offers PPF account and you can get the account activated in any of the SBI branches in no time.
Eligibility for PPF Account in SBI
A PPF account can be opened for any individual in his name or on behalf of a minor. There is no age limit or income slab for PPF account. Anyone is eligible. Only a joint account in the name of Hindu Undivided Family is not permissible.
- Any resident Indian can have just one account under his or her name other than the one he/she could be operating for a minor.
- In case of Minors, only one of the parents can have account under their name for the minor. Both parents can’t have an account for the minor, individually or jointly.
- Grand Parents are not eligible to open a PPF account on behalf of minors. However, if both the mother and father of the child are death, Grand-Parents do have the authority to open a PPF account on behalf of the minor. In this case, Grand-Parents would have to submit proof of death of both parents before opening of the account.
Investment Limits of PPF Account in SBI
After August 2014, you can invest a minimum of Rs 500 and a maximum of Rs 1.50 Lakh in your PPF account and gain tax benefits on the amount invested as well. The account holder may however, deposit amount beyond the maximum limit, however the extra amount would not be eligible for any tax benefit or interest.
You can deposit the money in your PPF account either in a lump sum amount or not more than 12 times a year.
Duration of PPF Account in SBI
The maturity duration of PPF scheme is 15 years, in general. However, an account holder may get it extended on request in multiples of 5 years, i.e. 5 years, 10 years, 15 years and so forth. Having said that, people don’t opt for more than 15 or 20 years under the scheme as that is the time they need money for their children’s future.
Withdrawals and Loans against PPF Account in SBI
PPF are not only an investment scheme but a good medium for accumulating money along with a source of loans from time to time. Loans and withdrawal from the PPF account are perfectly permissible and is generally based on the age of the account holder as well as the amount accumulated in PPF account.
Tax Exemptions on PPF Contribution in SBI
The contributions made towards PPF account are very much exempted from Income Tax under Sec 88 of Income Tax Act. Moreover, the interests as well as the accumulated matured amount too are exempted from Income Tax.
Nomination Facility for PPF Account in SBI
A PPF account holder can nominate one or more than one persons against his/her PPF account. Moreover, the account holder may also define the shares of each nominee, in case he/she nominates more than one person.
This facility makes PPF an excellent small saving scheme since anyone can secure future of their children by distributing the benefits among their children right from the start of the scheme.
Is PPF Account is Transferable from SBI to other banks?
PPF account can be opened in any bank or post offices across India. An operating account can be transferred to any other location within the same bank or to other banks and post offices and vice-versa. The transfer of PPF account from one branch to another or from one bank to another is absolutely Free of Cost.
If you want to open a PPF account with SBI, all you have to do is walk up to any of the SBI branches and meet the concerned official. You would have to fill in Form A provided by the bank official and submit relevant documents to confirm your identity.