To mobilize small savings, Public provident fund Scheme is introduced by the National Savings Organization in 1968.
Public provident fund or PPF scheme is one of the best investment option which not only save your taxes but also earn you good return every year.
A PPF account can be opened with any authorized SBI branch in your city or nearer to your locality.
By using your PPF account in SBI, you can do online transaction by which money can be deposited without visiting the branch. You can link your SBI saving account with the SBI PPF account online.
Procedure for opening a PPF account in SBI
- In the first steps you need to find the SBI branch that is authorized to open a PPF account. Not all branches of SBI are authorized to open a PPF account. You need to locate an authorized branch that is nearer to your city. Please use SBI branch locator to locate the branch nearer to your place.
- Collect all the documents that are required to open up a PPF account
- Approach your SBI branch and request them for opening a PPF account. You need to produce a document for address proof, identity proof and two passport size photo.
- Fill up all the necessary documents and deposit the initial amount for opening your PPF account.
After all these process, SBI will issue a passbook which is similar to the saving passbook.
Documents for opening a PPF account with SBI
As a proof of your address and identity you can produce any government issued documents. Generally, copy of following documents are accepted;
- Driving license
- Voter ID
- Ration Card
Along with this you need to carry a pan card copy and two passport size photograph. All the documents should be self attested. You also need to carry the original documents along with you, in case asked for, you need to produce it before them.
You can deposit money to your PPF account up to the maximum limit of Rs. 1, 50,000. But a minimum amount of Rs. 500 has to be deposited every year to your public public fund Account as government has fixed the minimum amount as Rs.500 and maximum amount as Rs. 1, 50,000 per year.
One can also issue a standing instruction to the bank for auto credit from the saving bank account to the PPF account. Standing instruction facility should be used if you want to deposit a fixed amount at a specific interval of time. Only 12 transactions are allowed per year for depositing in to PPF account and these can be deposited anytime during the financial year.
Like in the case of other PPF account, investment to SBI PPF account is also eligible for income tax deduction under section 80C of the income tax act. If you want, PPF account from one branch of SBI can be transferred to another branches or it can also be transferred to post office / other banks. For transferring a PPF account, SBI do not charge anything.