Your PPF account will earn handsome income at 7.1 pct interest rate - No CUTS; Know benefits and EXPERT'S opinion

PPF account Returns – Public Provident Fund mostly referred to as PPF is a Small Savings Scheme (SSS) run by the Government of India is one of the most popular savings schemes in the basket of 12 such schemes. PPF offers assured returns and is a safe investment instrument. If you are planning to subscribe to this scheme and don’t know about its benefits and how to do it, then here is your guide to do so!  

It has one of the highest interest rates among its peers at 7.1 per cent interest rate. Any resident individual is eligible to open a PPF account. You can even open a PPF account in any post office or bank.  If one talks about the bank, the most popular scheme is SBI PPF. This account can be opened by visiting a bank branch or also via online mode. 

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Jitendra Solanki, Expert in Personal Finance Matters, said that this is one of the most popular savings instruments and offers reasonable returns which are also assured. He said that the biggest benefit of PPF and other savings schemes is that they come with a sovereign guarantee. 

They also give income tax benefits under Section 80C of the Income Tax Act, he added.       

How to open SBI PPF account?   

1. Your Aadhaar number should be linked to your bank account. Yout mobile number should also be registered with the bank to receive OTP from the bank    
2. Login into you SBI account with your User Id and Password.  
3. Click on the 'Request and enquiries' tab now.  
4. You will see a dropdown menu. Select ‘New PPF Accounts’ option. You will be directed to a PPF page. You will be able to see your PAN (Permanent Account Number) number and existing customer details.  
5. Proceed after verifying your name and other details.  
6. You will see a dialog box after submitting, which will say that you form has been successfully submitted. You will also have a reference number.  
7. Download the form which has the reference number. Print the form and complete the KYC formalities within 30 days. 

SBI PPF Account Features and Benefits: 

1. An SBI PPF Account can be opened with minimum amount of Rs 500 while the maximum annual limit is Rs 1.5 lakh in an year. The maturity period is 15 years. It can be extended for further 5-year periods. The interest rate is decided by the Government of India. The current PPF account interest rate is 7.10 per cent. 

2. PPF interest is paid every year on 31 March. 

3. A loan can be taken on your PPF money. It also offers tax benefits.