The State Bank of India offers the option to invest in PPF to existing users and new users of its bank. The channel is aimed to create a habit of savings among the people of India, along with creating a reliable pool of investment which can be used by the banks from time to time.
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- How to Open PPF Account in SBI?
- PPF – Public Provident Fund – Popular Tax Saving Scheme
SBI PPF Interest Rate
The rate of interest at present is 7.6% 1.
How to make deposits in SBI PPF?
SBI banks allow the users to make deposits in a variety of manners. There is no limit on the minimum or maximum number of deposits. However, it should be ensured that a minimum of INR 500 is deposited each year and a maximum of INR 1, 50, 000 is permitted. Any amount which is above the given limit will not earn interest and will not be calculated under deductions.
For making deposits in SBI PPF, a user can either make online transfer or can submit the amount physically. For making an online transfer, all that a user needs is the online banking access and the correct PPF account details. While making the transfer, it is important for the user to ensure that the name is entered correctly. For an instance, if the name of a person is Akash Kumar Singhal, then the same should appear on the PPF policy name as well. If the name mentioned is Akash K Singhal, then online transfer will not take place.
Another way of depositing money in a PPF account is by submitting the money physically in a bank. A person has to carry the amount along with a form which acknowledges the receipt of PPF. Long line and waste of time is a big concern for people who are looking forward to use the physical submission procedure.
Maturity Period for SBI PPF Policy
The SBI PPF policy matures at the end of 15 years from the date on which the policy was taken. After the maturity, a policy holder has the option to keep the total amount in another block of 5 years and earn interest on the same.
On the other hand, if a candidate wishes to withdraw the policy prior to 15 years, he can do the same by following the policy of PPF surrender. Prior consultation with the bank manager is necessary and account holders must reproduce the documents once more at the time of surrender.
The SBI PPF is one of the most trusted investments of recent time. The Government of India has granted special permission to this policy and hopes to see people saving for their future. With the exemption limit of INR 1,50,000, it is obvious that people would have something in their hand to meet an uncertain expense in near future.