State Bank of India (SBI), the country’s largest government bank, is giving you a great opportunity to open a Public Provident Fund Account (PPF Account). The bank has informed that now you can easily open your PPF account through online banking. That means you can open an account without visiting the bank branch. To open the account, you will have to complete some easy steps, after which your PPF account will be opened easily. To open this account, you must have an SBCA account with SBI. Also, it is necessary to have KYC of the account.
You can invest a minimum of Rs 500 and a maximum of Rs 1,50,000 in a financial year in a PPF account. The minimum tenure of PPF is 15 years. If you want, you can extend it in a block of 5 years.
Complete these easy steps
- Deposit and investment option has to be selected
- After this, the option of Public Provident Fund i.e. PPF account will appear in front of you, which you have to select.
- After this you will have to go to PPF Account Opening.
- In the next step you will see instructions and terms and conditions on the screen. By reading this you can know all the important things.
- After this your PPF account will be opened easily.
What is PPF account?
PPF account or Public Provident Fund is one of the most popular long-term saving-cum-investment products. Through this one gets good returns. PPF was first introduced to the public in the year 1968 by the National Savings Institute of the Ministry of Finance. Investors can accumulate a good corpus for their retirement through PPF by keeping money aside continuously for a long time. PPF has a maturity period of 15 years and there is a facility to extend it.
PPF is popular because it is one of the safest investment products. That means the Government of India guarantees your investment in the fund. The interest rate is set by the government every quarter. PPF is better than many other investment options because your investment is tax free under Section 80C of the Income Tax Act (ITA) and the returns from PPF are also not taxed.
