Public Provident Fund (PPF) offers assured returns and is a safe investment instrument and is one of the most attractive small savings schemes (SSS). If you are planning to open a PPF account and don’t know about its benefits and how to do it, then here is your guide to do so!
This is a government scheme and any resident individual is eligible to buy it. You can open a PPF account in any post office or bank. If one talks about the bank, the most popular scheme is the SBI PPF. This account can be opened by visiting a bank branch or also via online mode.
How to open SBI PPF account?
Your Aadhaar number should be linked to your bank account. Your mobile number should also be registered with the bank to receive OTP from the bank
Login into you SBI account with your User Id and Password.
Click on the ‘Request and enquiries’ tab now.
You will see a dropdown menu. Select ‘New PPF Accounts’ option. You will be directed to a PPF page. You will be able to see your PAN (Permanent Account Number) number and existing customer details.
Proceed after verifying your name and other details.
You will see a dialog box after submitting, which will say that you form has been successfully submitted. You will also have a reference number.
Download the form which has the reference number. Print the form and complete the KYC formalities within 30 days.
Features and benefits:
Account can be opened with minimum amount of Rs 500 while the maximum annual limit is Rs 1.5 lakh. The maturity period is 15 years. It can be extended for another 5 year. The interest rate is decided by the Government of India. The current rate being offered is 7.10 per cent.
The interest is paid every year on 31 March.
A loan can be taken on your PPF money. It also offers tax benefits.