SBI Customers can avail benefit of Rs 1.5 lakh tax saving by doing this simple thing

By Sunita Last updated May 1, 2022 0

Public Provident Fund Limited (PPF) is considered to be one of the risk-free investment options that starts yielding average returns above inflation. It is a good savings scheme offered by the Government of India with the aim to providing a secure post-retirement life to everyone.

PPF is one investment schemes that falls under the Exempt-Exempt-Exempt (EEE) category. The interest earned and the returns are not taxable under Income Tax. PPF allows a minimum investment of Rs 500 and a maximum of Rs 1.5 lakh for each financial year. You can invest in a lump sum or in a maximum of 12 instalments. The PPF has a minimum tenure of 15 years, which can be extended in blocks of 5 years as account holders wish.

Current interest rate in PPF account

The PPF account offer a interest rate of 7.1 percent that is compounded annually. You can open a PPF account at post offices or authorized commercial banks. For example, State Bank of India (SBI) provides the facility to its customers to open a PPF accounts online. The PPF accounts also offers tax-saving benefits.

To open a PPF account you will need to submit the documents mentioned below.

Duly filled account opening application form
KYC documents such as Aadhaar, Voters ID, Driving license, etc.
Passport size photograph
Permanent Account Number (PAN) card copy
ID proof and residence proof
Nominee declaration form

How to open an account in SBI

Log in to onlinesbi.com.
Go to the ‘Request and Enquirers Tab’ tab and click on ‘New PPF Account’ option.
Click on the ‘Apply for PPF account’ section.
Enter the branch code from where the account is to be opened.
Fill the details of the nominee and submit it.
After successful submission of application form, you will get an application number.
You can print the account opening form from the tab ‘Print PPF Account Online Application’.
You can get more information by visiting the bank branch.

Deposit Frequency: Deposits into a PPF account has to be made at least once every year for 15 years.

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State Bank of India