The SBI PPF account is one of the smartest ways to save tax and build a steady habit of savings. Apart from that, the SBI PPF account offers numerous benefits to the account holders which includes appointing a nominee and transferring the PPF account to some other banks as well. Given such credibility, it is obvious that young India wants to invest in smart policies such as this and ensure that their saving continues to grow over a period of 15 years.
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So, without any further delay, let us discuss some of the prime benefits of SBI PPF Account-
1) Tax Deductions
The very first reason to invest in PPF is to have deductions under the section 88 of the Income Tax Act, 1972. If a user has invested in PPF, he can claim the same as a deduction when it comes to computing the total taxable income. However, the upper limit for deduction is fixed at INR 1, 50, 000.
2) Habit of Savings
It is good to see that a habit of savings is created among people with the aid of PPF. Most of the tax payers make monthly contributions to their PPF account and the same results in creating a habit of savings among people. In the absence of this policy, the same may get washed away with speculative investments or luxury spending.
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3) Steady Interest of 8.70% per annum
The rate of interest which a PPF account earns is 8.70%. This amount is much higher than what current account and salary accounts earn. Therefore, it gives the investment a steady growth and people are able to nurture their savings with better options. On maturity, the amount becomes even bigger.
4) Facility to Nominate
With life being uncertain, there should be an opportunity for the investors to ensure that the policy continues to benefit others, if their life comes to an end suddenly. The facility to nominate a person as beneficiary is present under PPF policy. In this way, even if the individual is not there, his policy would continue to grow and be offered to the nominee at the time of maturity.
5) Transfer to any other branch/ bank
The best of SBI PPF account is that it can be transferred to any branch/ bank/ post office. With occasions like transfer, job change or any other reason, if a person is unable to visit the branch where his PPF was previously opened, he can get the same account transferred to a nearby bank and continue to contribute in the same manner. Neither the amount, nor the accumulated interest would be affected.
The SBI PPF investment is one of the most common ways whereby Indians save taxes and save for the future. The initiative has been taken by the Government of India to ensure that the citizens learn to save and be prepared for meeting uncertain challenges in the future. People can also make online transfer in their PPF account through net banking access.