Public Provident Fund, commonly known as PPF, is a small savings fund offered by the Government of India. The rate of interest is determined by the central government quarterly. Currently it is 7.9% interest annually. The minimum amount that can be deposited in a PPF account is ₹500 and the maximum can go upto ₹1.5 lakh in a financial year. The benefit of a PPF account is that the interest income is completely exempt from income tax. A PPF account can be opened in a Post Office, some banks like State Bank of India (SBI) and ICICI Bank also provide the option of opening a PPF account. The account can be opened at branches or through online. Only if you have access to online internet banking, you can open SBI PPF account online.
Here are steps to open SBI PPF account online:
1) Log in to SBI online account. Click on 'Request and enquiries' tab from the top right corner.
2) From the drop down menu, you will have to click on the new PPF account.
3) After clicking on it, you will be directed to a page containing account details.
4) If you want to open the account in the name of a minor, then you need to check on the tab which says 'If account to be opened in the name of a Minor, click here'.
5) Fill the details of the minor (name, age). You also need to fill the relationship with the applicant, in case you want to open the account in the name of a minor.
6) If the account is not to be opened in the name of minor, then you need to fill the branch code in which you want to open your PPF account.
7) After putting in branch code, you will be asked to put in the names of nominees. A maximum of five nominees can be added for a PPF account.
8) After submitting, a dialogue box will appear saying, 'your form has been successfully submitted'. It will also have the reference number.
9) Now you need to download the form with the reference number given.
10) After downloading the form, you need to print and fill the form and submit it at the branch within the 30 days along with KYC documents.