Public Provident Fund (PPF) scheme, a retirement planning-focused instrument, is offered by various institutions including India Post and commercial lenders such as State Bank of India (SBI). The PPF scheme enjoys an “exempt, exempt, exempt” (EEE) status. This means that the returns, the maturity amount and interest income are exempt from income tax. A PPF account can be opened with SBI at any branch with relevant documents, noted the lender on its website- sbi.co.in. The documents required to open PPF accounts are – nomination form, passport size photograph, copy of PAN (Permanent Account Number) card, ID proof and residence proof as per bank’s KYC norms.
Given below are the steps to open PPF account using SBI net banking:
Step 1: Visit SBI net banking portal – onlinesbi.com and log in with your credentials.
Step 2: Click and select ‘New PPF Account ‘option under ‘request and enquirers tab’.
Step 3: You will be redirected to the ‘new PPF account’ page. Under ‘apply for PPF account’ section, existing details including name, address and PAN (Permanent Account Number) will be displayed. Below that, you need to enter the branch code of the branch from where you want to open your PPF account. Any branch of SBI can be approached for opening PPF account.
Step 4: Enter the nominee details- name, date of birth and percentage amount for each nominee. Click on submit.
Step 5: SBI displays the application number along with a message of successful submission. Print the account opening form from the tab ‘print PPF account online application’ and visit the branch with Know Your Customer (KYC) documents and photographs within 30 days. The account opening form is deleted after 30 days from the date of submission.
For the current quarter, investment in a PPF account fetches an interest at the rate of 7.9 per cent per annum.