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SBI Online transactions: How to open Public Provident Fund (PPF) on onlinesbi.com
SBI Online transactions: You can open a PPF or Public Provident Fund account online on State Bank of India's official website - onlineSBI.com.
SBI Online transactions have made financial dealings extremely easy for all those interested in investing their money or otherwise engaging in transactions. Notably, Public Provident Fund or PPF is one of the safest investment options available in India. The scheme comes with a lock-in period of 15 years and offers a fixed interest rate. The account can be opened with any bank both offline as well as online. State Bank of India (SBI) too allows its customers to set up a PPF or Public Provident Fund account online. For this, the customers need to visit the official internet banking website of SBI - onlineSBI.com. All they need to do is provide details like branch code and names of nominees and open the account within few minutes.
Here is a quick step-by-step guide on how to open a Public Provident Fund (PPF) on onlineSBI.com. But, before that you will need a few documents like: Permanent Account Number (PAN) card and Aadhaar card along with the your SBI netbanking details. Follow these steps to get the job done:
1. Go the official website of onlineSBI.com and log in using your netbanking details.
2. Move the cursor to "request and enquiries" section and click on "new PPF account" option.
3. Your savings account details will be displayed on the next page.
4. You need to choose between opening a SBI account for a minor or an adult. In case the account has to be opened for a minor, you will have to enter details like name of minor along with his or her relationship with the applicant. In case the account has to be opened for an adult, the user needs to enter the desired branch code.
5. You will then have to enter details of nominees. SBI allows up to five nominees for a PPF account.
6. Submit the details to SBI and you will be assigned a reference number, which is displayed on the next page.
7. Download the form provided by SBI using this reference number and take a printout of it.
8. Fill the necessary details and paste a photograph in the indicated space. This form needs to be submitted in the SBI branch of choice along with KYC documents within 30 days, according to the bank.
A PPF account comes under the 'exempt, exempt, exempt' (EEE) category of tax status, meaning the returns, the maturity amount and the interest income are exempt from income tax. It offers an interest rate of 8 per cent. The maximum amount to be invested in a PPF account is Rs 1.5 lakh.
The subscriber should not deposit more than Rs. 1,50,000 per annum as the excess amount neither earns any interest nor is eligible for rebate under Income Tax Act, according to the India Post website.