New Delhi, Business Desk. PPF is a popular long term investment option that comes with EEE status. That is, in this investment option, the investor gets income tax exemption at three levels. First at the time of investment, then on the interest income and then on the maturity amount. PPF offers its customers a high interest rate. Apart from the post office, many banks like SBI also provide the facility of investment in PPF to their customers.
If you want to invest in PPF through SBI, then you have to fill Form-A and submit it with the necessary documents to any branch of SBI. PPF account can be opened in any one branch, so in Form-A, you have to provide the information about the branch where you want to open your PPF account. Only one PPF account can be opened by one person. However, the account can be opened on behalf of the minor.
These documents will be required to open PPF account with SBI
For opening a PPF account, along with Form-A, a nomination form, PAN card copy / Form 60-61, passport size photo and copy of ID proof and residence certificate document as per KYC rules of the bank are required. .
This is merit
Any adult Indian citizen can open PPF account. Also, PPF account can be opened by an adult person on behalf of a minor. On behalf of a minor child, his or her parents can open a PPF account, but both parents cannot open a PPF account for the same minor child. For a minor boy or girl his grandparents cannot open PPF account. However, on the death of the parents of minor children, grandparents can open PPF account on behalf of the minor as a guardian.
Rate of interest
The interest rate on PPF is fixed by the government every three months. Currently, the interest rate on PPF is 7.1 percent and the duration of PPF account is 15 years.
The PPF account can be invested in lump sum or up to 12 installments. A minimum investment of Rs 500 is allowed in a PPF account. Also, a maximum of 1.5 lakh rupees can be invested in a financial year. If an investor does not invest even a minimum of Rs 500 till the completion of the financial year, a penalty of Rs 50 per year is levied.
Investors can use PPF calculator to calculate PPF maturity amount, interest income, loan on PPF and instant PPF withdrawal amount. Using SBI PPF calculator, you can calculate your returns according to the readily available interest rate and duration. Apart from this, many other PPF calculators are also available online. SBI offers PPF from both its customers and non-customers.