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SBI Public Provident Fund (PPF) Account: How To Invest, Interest Rates, Tax Benefits
20 Jan 2019, 02:49 PM IST 
Under SBI's PPF account, interest income is totally exempt from Income Tax.
- As per extant instructions, opening of PPF accounts in the name of Hindu undivided family is not permitted, according to SBI.
- A minimum of Rs 500 subject to a maximum of Rs 1,50,000 per annum can be deposited. The subscriber should not deposit more than Rs.1,50,000 per annum as the excess amount neither earns any interest nor is eligible for rebate under Income Tax Act.
- The amount can be deposited in lump sum or in a maximum of 12 installments per year.
- The original duration of the scheme is 15 years. Thereafter, on application by the subscriber, it can be extended for 1 or more blocks of 5 years each.
- Interest rate is determined by central government on quarterly basis. At present it is 8.0 per cent per annum. Interest is calculated on the minimum balance (in PPF account) between fifth day and end of the month and is paid on March 31 every year.
- Loans and withdrawals are permitted depending upon the age of the account and balances as on the specified dates.
- Under SBI's PPF account, income tax benefits are available under Section 88 of Income Tax Act. Interest income is totally exempt from Income Tax.
- Nomination facility is available in the name of one or more persons. The shares of nominees are also defined by the subscriber.
- The PPF account can be transferred to other branches/ other banks or post offices and vice versa upon request by the subscriber. The service is free of charges, mentioned SBI.
- Premature payment is allowed only after the account completes five years of operation under certain conditions. This is also applicable to account held in the name of minors.
