SBI PPF Account

State 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of the amount is only possible after the first 5 years. 15 years away of the extended period 60% of the amount can be withdrawn.

18 comments to SBI PPF Account

  • Shravan

    i want to open PPF account with SBI.

    1)maturity of account how many years in SBI PPF.

  • Amit Arora

    i wants to open a PPf for Tax saving . Please confirm

    1. Can we Fluctuate the amount as per our wish or there is constant amount we have to invest or a yearly or monthy basis.

    2. What happens if we stop paying before the 5 years.
    3. The Interest @ 8 % on ppf Balnce is Compounded or not.
    4. Is it tax free at the time of Maturity under section 10(10D).

    • Financial Advisor

      You can pay as per your choice between RS 500 to RS 1,00,000 annually. There is no constant amount
      You have to pay a minimum of RS 500 per year to keep the account active otherwise it will get locked and you will get the money on maturity of account only.
      The interest is paid annually on 31st March so compounded every year.
      Yes it is tax free on maturity

  • Sadananda Neog

    My age is now 61.I want to open a PPF account for the purpose tax savings. Can I open the account beyond the age of 60. Kindly reply.

  • kimmy

    i would like to open ppf a/c and also would like to know to activate this a/c, is i need to deposit every month? or yearly?

    • Financial Advisor

      Contact your nearest branch to open this account. You can deposit yearly or monthly whatever you feel like up-to Rs 1,00,000. Minimum amount is Rs 500

  • Dipankar Das

    I have a PPF account with SBI. Can I deposit amount in any SBI branches???

  • Pradip Das

    it is the best scheme in my observation regarding saving of taxes, and interest is also good which is totally tax free. Contact your nearest SBI branch for this.

  • Uday Shankar Kumar

    I have opened a PPF account at SBI nagpur, civil line branch in the year 2009. But, due to some unavoidable circumstances, i failed to keep it activated and now it is deactivated. So, kindly make me know about the procedure to activated the same.

  • Samadhan Sangale

    This is very useful stuff. but i have 1 question, minimum limit of account is 5%. If i want extend the period of account then it is multiply of 5 yrs we can extend the period or we can extend the period still 6 yrs, 7 yrs. like that. please confirm me.

  • Amit PAtil

    i want to open PPF account with SBI

  • abhash srivastava

    it is the best scheme in my observation regarding saving of taxes ,and interest is also good which is totally tax free.
    So no need to think for any other options.

  • girish

    Eligibility and benefits of SBI PPF Account
    Any individual who is a major can open this account
    Above statement is wrong, anybody though minor can open PPF account, but obvious through Guardian.

  • srikanth

    its very useful stuff and to make it really interesting u can add related topics like other big reputed banks that offers same or superior services in and around other than SBI.

  • S.K.GARG

    The statement made above stating that there are provisions for extension of PPF A/c for 5 years maximum at the maximum is incorrect as this A/c can be extended at any number of times in blocks of 5 years each. This means that there is no maximum time limit for keeping the PPF A/c live and the PPF A/c can be extended for as long as one requires.

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