How to open PPF Account online SBI

Public Provident Fund (PPF)

Public Provident Fund (PPF) is one of the popular investment options backed by the Government of India (GoI). The Public Provident Fund investment scheme was launched by the National Savings Institute of Finance Ministry in 1968. This investment vehicle has been considered a breakthrough ahead of various other plans present in the market. Public Provident Fund is a long-term investment vehicle/option, offering investors a steady income stream through relatively high yet guaranteed returns.

Features of PPF

• An attractive interest rate of 7.1% per annum, entirely exempted from income tax as per Section 80C of the Income Tax Act.
• Ideal long-term investment option up to 15 years.
• The investment amount can be as low as Rs. 500 and a maximum of Rs.1,50,000 per financial year can be invested/deposited in any PPF account.
• Twelve transactions for the deposit can be made for a financial year.
• The loan facility can be availed from the third to the sixth financial year.
• Partial withdrawal of the sum is also available from the seventh financial year onwards.
• PPF Account can be further extended in a block period of 5 years after reaching maturity.

Associated-Risks

PPF investment scheme involves zero or minimal associated risks. PPF as an investment option can witness default risk, but the chances of such failures are almost negligible. PPF investment scheme is also prone to associated reinvestment risk, which means risk associated with reinvesting in this scheme due to the difference in interest rate. These rates are subjected to revisions every quarter/year.

Opening a PPF Account in SBI

Generally, a PPF account can be easily opened in any post office or a bank branch. SBI has been involved in launching a digital service that allows its customers to open a Public Provident Fund (PPF) account instantly via an online portal in a completely paperless manner at any time, i.e., 24/7.

Requirements to be fulfilled before opening SBI PPF account

• The customer must hold a savings bank account with SBI bank.
• The customer must have Net Banking/Mobile Banking access
• The customer’s Aadhaar number must be linked to their account
• The customer’s mobile number linked to Aadhaar must be active to receive a one-time password (OTP).

Steps to follow to Open PPF Account Online in SBI

1. Step 1. First, visit the SBI portal, www.onlinesbi.com, and log in with your credentials.
2. Step 2. Then click and select the ‘New PPF Accounts’ option in the toolbar.
3. Step 3. The ‘New PPF Account’ page will be opened on the screen. Customer details, including name, address, CIF number, and PAN, will be displayed.
4. Step 4. You may click the checkbox in case of opening the account on behalf of a minor.
5. Step 5. Then enter the bank branch code along with the branch name of your home branch. Further, enter up to five nominee details that may be based on your choice. Then click ‘Submit.’
6. Step 6. Once all the entered details are verified, click on the ‘Proceed’ option.
7. Step 7. The PPF account will then be created and the PPF account number will be displayed on the screen. PPF account statements may be accessed on internet banking.
8. Step 8. You may print the application form by clicking on the tab ‘Print PPF Online Application’. Visit the nearby branch and submit the printed form along with the KYC documents and photographs before completion of 30 days to complete the process.

Checking the balance of SBI PPF Account Online

Follow the following steps to check the balance of the SBI PPF account online:

1. Step 1. The customer must have activated internet banking linked with his account.
2. Step 2. You may log in to net banking using a valid User ID and password and then check the details of the account.
3. Step 3. You may then check the PPF account status along with the balance in the same window.