New Delhi:
For State Bank of India (SBI) customers seeking to invest in the Public Provident Fund (PPF) scheme, there’s great news.
The PPF scheme, known for its compound interest benefits and reliable returns, now offers the convenience of opening accounts from the comfort of your home through SBI’s online banking services.
This feature streamlines the process, allowing customers to embark on their PPF investment journey hassle-free.
Advantages of PPF Investment
The Public Provident Fund (PPF) scheme remains a preferred choice for many private sector employees, primarily due to its compounding interest feature.
With diligent investment, individuals can accumulate a substantial corpus of over Rs 1 crore within 25 years.
The Indian government offers an attractive interest rate of 7.1 percent per annum on PPF.
Traditionally, PPF accounts could be opened at post offices or banks, but now,
SBI customers have the added convenience of initiating the process from their homes through internet or mobile banking services.
Process of Opening an Online PPF Account
To open a PPF account with SBI online, follow these straightforward steps:
1) Log in to your SBI account using your username and password.
2) Navigate to the ‘Request and Enquiries’ tab located on the right side of the screen. Select ‘New PPF Accounts’ from the dropdown menu.
3) A new page will appear; enter your PAN and relevant details.
4) Specify the branch code where you wish to open your PPF account.
5) Fill in your personal information, including your address and enrollment number, and click ‘Proceed.’
6) After submission, a confirmation dialogue will appear, indicating that your form has been successfully submitted.
7) Download the account opening form using the provided reference number.
8) Print the form from the ‘Print PPF Online Application’ tab and submit it to your chosen branch, along with KYC documents and a photograph, within 30 days.
Essential Requirements for PPF Account Creation
It’s essential to meet certain requirements to open a PPF account through SBI’s online platform:
1) Your Aadhaar number should be linked to your SBI savings account. Ensure that the mobile number linked to your Aadhaar is active.
2) The minimum investment to open a PPF account is Rs 500, with a maximum annual investment limit of Rs 1.50 lakh.
Understanding PPF Account Maturity and Withdrawal Rules
A PPF account matures after 15 years, and it can be extended for 5-year periods. During the first 5 years, funds cannot be withdrawn from the account.
If a withdrawal is made before 15 years, a 1% deduction from the fund will be applicable.
This informative article outlines the steps for SBI customers to open PPF accounts online, emphasizing the benefits and necessary requirements for successful account creation, and providing insight into PPF account maturity and withdrawal rules.
