SBI PPF Account: Everything You Need to Know.
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As we all know that the largest commercial giant is State Bank of India several individuals prioritize opening an SBI PPF account since customers can find more bank branches around the country. Financial analysts also state that the SBI PPF account is deemed one of India's most preferred PPF alternatives. For all of us, the Public Provident Fund Scheme has become a popular vehicle to generate a retirement pool. The risk-free persona of the deposit and its tax-free income are the main reasons why millions of people have selected this strategy. The SBI Public Provident Fund account is typically among the most prevalent alternatives among the various public and private sector banks offering the PPF account facility.
Eligibility Required To Open SBI PPF Account
It is convenient to open a PPF account, but accepting some eligibility criteria that are listed below:
- On behalf of his or her name, an individual who is an Indian citizen can open an SBI PPF account. No upper age limit is applicable to open the account.
- Hindu Undivided Family and Non-resident Indians (NRIs) are not eligible to open a PPF account.
- A parent/guardian can open an SBI PPF account on behalf of one minor child at the specified branches of SBI.
Documents Required To Open SBI PPF Account
You must keep the following documents handy while applying for an SBI PPF account.
- PPF Account opening form (Form A)/Signed Printout of Form A
- Identity proof: Aadhaar, PAN, Driving License, Voter ID etc (must be self-attested).
- Address proof: Passport, Aadhaar Card, Electricity Bill
- Passport Size Photographs
Key Takeaways Of SBI PPF Account
Some of the main characteristics and advantages of PPF are as follows:
- One can open an SBI PPF account with a minimum balance of Rs. 500 up to a maximum of Rs. 1.5 lakhs annually
- Deposits in PPF accounts can be rendered by a maximum of 12 instalments annually or via lump sum.
- Deposits in SBI PPF account can be made online through net banking and mobile banking as well as offline by cheque or demand draft.
- You need to specify the specifics of your family as a nominee for PPF account at the time of opening the account.
- And also the details of the nominee can be modified at a later date as per your convenience.
- A new PPF account can not be initiated by an NRI, but if an Indian citizen becomes an NRI prior to the account's maturity, such an SBI PPF account can be maintained without the consideration of continuation or renewal until maturity.
How To Make A Withdrawal From Your SBI PPF Account?
Some prominent components of the SBI PPF account balance withdrawal procedure are listed below:
- From the 5th year onwards, SBI enables you to withdraw corpus from your PPF account every year.
- In order to initiate a withdrawal from your SBI Public Provident Fund account, you need to download PPF Form C, duly fill the same and submit it at specified SBI PPF branches.
- At the end of the fourth year that precedes the withdrawal year or the PPF account balance at the end of the previous year, the maximum amount you can withdraw is restricted to the lower of-50 per cent of the SBI PPF account balance.
Conclusion
With the Facility of Online Transfers extended to Individuals having PPF Account in SBI, it is expected that more and more users would now be interested in Investing in PPF Account considering the Tax-Free Status that has been given to PPF Accounts.
Also read- What Is Investing And What Does It Mean? Learn About Several Investment Options.
