SBI PPF AccountState Bank of India, the largest bank of India’s Public Provident Fund Account is available for the general public to open. It can be opened in the public sector banks or post offices across India. The reason why individuals open this account is that they can claim for an income tax refund along with the interest as it falls in to the category of investments. The maximum limit of this account is 15 years although there are provisions for its extension into 5 more years at the maximum.
Eligibility and benefits of SBI PPF Account
Any individual who is a major can open this account. The minimum investment to be made is Rs 500 per annum and the maximum of Rs 70,000 per annum. The benefits of holding an SBI PPF account are
- It helps the common man invest money to secure his future by cutting down on the amount he pays as income tax.
- There is a great flexibility in the minimum and maximum limit of the amount to be deposited which gives convenience to people from all sections of the society
- There is no tax charged on the income made from this account.
- Annual interest rate of 8%
- After the maturity of the account the account holder can still retain the account to keep enjoying the interest benefits.
- The account is transferable from one branch to another branch.
- The spouse or minor children can claim the tax benefits too.
Facilities provided by SBI PPF Account
- Nomination of more than one person is allowed.
- A maximum of 12 instalments oriented subscription is offered.
- The transfer of the branch is done free of cost.
- With the payment of Rs 50 a discontinued account can be revived.
- The flexibility of discontinuing the account by the account holder is available.
Loans and withdrawal policy of SBI PPF Account
Loans up to 25% can be taken at the end of the first financial year. Once a loan taken, the second loan shall only be issued on the full repayment of the first loan.
Withdrawal of the amount is only possible after the first 5 years. 15 years away of the extended period 60% of the amount can be withdrawn.