State Bank of India (SBI), the largest lender of the country, offers the option of opening a public provident fund (PPF) account to its customers. PPF accounts come under the small savings scheme of the government. Interest rates of small savings schemes like PPF are decided every quarter. The current interest rate on PPF deposits is fixed at 7.6 per cent with effect from April 1, 2018. SBI said that the PPF scheme offers an investment avenue with decent returns coupled with income tax benefits.
Here are five things you need to know if you are applying for a PPF account in SBI:
1) How to apply for PPF account in SBI
To apply for the PPF Provident Fund (PPF) scheme, 1968, you have to fill Form A and submit it at any SBI branch with relevant documents. The PPF account will be opened in one of the branches. Mention the name of the SBI branch where you wish your PPF account to be opened on Form A, said SBI on its website sbi.co.in.
2) Eligibility for investing under Public Provident Fund (PPF) Amendment Scheme, 2016
A Public Provident Fund (PPF) account can be opened by resident Indian Individuals and individuals on behalf of minors.
Only one Public Provident Fund (PPF) account can be maintained by an individual, except an account that is opened on behalf of a minor.
A Public Provident Fund (PPF) account can be opened either by the mother or father on behalf of their minor son or daughter. However, the mother and father both cannot open Public Provident Fund (PPF) accounts on behalf of the same minor.
Grandparents cannot open a Public Provident Fund (PPF) accounts on behalf of minor grandchild. However, in case of death of both father and mother, grandparents can open Public Provident Fund (PPF) accounts as guardians of the grandchild.
3) Documents required for opening a Public Provident Fund (PPF) account with SBI
PPF account opening form (Form A )
Passport size photograph
Copy of PAN card/ form 60-61
ID proof and Residence proof as per Bank's KYC norms
4) Withdrawal of funds from PPF accounts
Customer can make one withdrawal every year, from the seventh financial year, of an amount that does not exceed 50 per cent of the balance of the customer credit at the end of the fourth year immediately preceding the year of withdrawal or the amount at the end of the preceding year, whichever is lower.
5) Minimum and maximum amounts that can be invested in PPF accounts
The minimum deposit amount is Rs. 500 per annum and the upper ceiling limit is Rs. 1,50,000 per annum.