SBI PPF account

SBI PPF accountState Bank of India PPF Account stands for Public Provident Fund Account and it is one of the favorite tax saving options. The PPF Scheme had come into effect in the year 1968 under Section 80C introduced by the Central Government. It helps the general public to gain rebate of 8% on Income Tax by creating payments to the fund. Opening a PPF Account with SBI is very simple as anybody who is an adult citizen or above can open it for themselves or on behalf of minors under their custodians. Investment on PPF can be done with the minimum deposition of Rs. 500/- per year & the maximum of Rs. 70,000/- annually.

SBI PPF Account Online

State Bank of India PPF Account Online is one of the favorite options to make the stress-free and a click away dealing with the SBI. Online transactions can be done easily by registering yourself with the SBI. The account application form is available on the official website of the bank. The status can be checked online and the statement should be checked periodically to ensure fair and satisfactory dealings.

SBI PPF Account Opening Form

You can download the application form from the official website of the bank or get it directly from any of its branch located nearest to your area. State Bank of India online payment can be done through the website of SBI by obtaining user ID & password through registration. SBI PPF branches are well flourished across the nation and serving the citizens at a large level. Details of the branches are given on the bank's website. Documents required for opening the account are ID Proof, Passport photocopy or Ration Card. Comprehensive details on how to open the SBI PPF Account can be easily availed from the bank's website.
SBI PPF Account Transfer

State Bank of India PPF Transfer is possible from a branch of SBI to the post office and from a post office to the branch. However, it is not possible to do transfer from an individual to another. The receipt is given to the customers on deposition of money in the account. Withdrawal has certain terms and conditions which are detailed on the SBI website.

PPF Savings in SBI

SBI PPF Account Interest Rates & Loans

The interest rates keep on changing from time to time as per the Government announcement. At present, the current rate is 8% and the interest is compounded yearly. PPF Account Loan can be obtained upto 25% of the available balance on completion of the 1st financial year from 3rd to 6th year. Thus, 2nd loan can be obtained on bill of the 1st loan.

Complaints can be registered via touch screen device available at the branches for the customer response. PPF Rules states that the customer can discontinue with the account anytime, but the repayment of the interest will be made after 15 years since the year on which the account was opened. It is advisable for the customers to use PPF Calculator in order to calculate the maturity value. The calculator is an easy and a simple task to find out the amount of maturity value. The account number is obtained as soon as the registration process is over.

PPF for Hindi Undivided Family (HUF)

PPF for HUFFurther clarifications regarding Account of Hindu Undivided Family in Public Provident Fund issued by the Reserve Bank in Circular dated May 25, 2005 (2005) 35 TCR 290 (St.) reads as under:

"Public Provident Fund Scheme, 1968- Clarifications:

In this regard, Government of India, Ministry of Finance vide letter F.No.2/8/2005-NS-II, dated May 20, 2005 have, inter alia, issued the following clarifications:

(i) Sequel to amendments to various Small Savings Schemes to restrict the scope of investments only to individuals, the accounts, if any, opened by juristic persons (HUFs, Trusts and Provident Funds), that is, persons other than individuals (through single or joint accounts or deposits by guardians on behalf of minors and persons of unsound mind as per rules) on or after May 13, 2005, under any of the small savings scheme including Public Provident Fund Scheme, 1968, shall be treated as void ab initio and immediate action should be taken to close such accounts and to refund the deposits without any interest to the depositors.

(ii) It may, however, be noted that the above amendments shall not be applicable to the existing accounts opened in accordance with the rules in operation prior to the amendments dated May 13, 2005. These shall continue till maturity and deposits/ withdrawals in/from these accounts shall be allowed to be made in accordance with the said rules. However, any extension of existing accounts shall be subject to the amendments dated May 13, 2005.

The reader's inference that continuation of existing HUF Accounts is permissible stands confirmed.

The clarification that the Hindu Undivided Families (HUFs) can continue existing Provident Fund Accounts is welcome, so that deduction under Sec. 80C can be availed. But such benefit will not be available for National Savings Certificate-Series VIII, Mutual Funds and the like, since no purchase in the name of HUF is possible from May 14, 2005. However, as pointed out by the reader, contribution to Provident Fund, from HUF income in any account opened even after May 13, 2005 in the name of the persons specified under Sec. 80C(4), should be eligible for deduction under Sec. 80C, since Sec. 80C(4) permits contributions to Provident Fund and Unit Linked Insurance Plans in the name of spouse or child in the case of individual or any member of the family in case of HUF.

Merely because these savings schemes themselves have been discontinued in the name of HUF, the benefit of deduction for HUF is not lost as long as the savings are from the resources of the HUF.

Even in respect of savings certificate or any other contribution to mutual funds, there is no positive requirement that the deposit has to be in the name of the HUF as such, while in the case of provident fund and unit-linked insurance plans, there is a positive permissibility for having the account in the name of the family members.

The views of the reader should, therefore, pass muster, since they are well reasoned. If the object is to deny relief under Sec. 80C to HUF, such object is best achieved by amendment to Sec. 80C and not merely by shutting out unfairly the avenues of savings themselves hitherto available for the HUFs.

Continuity of PPF account after maturity

PPF after maturityAt the subscriber's option, the scheme may be continued for another 5 years after maturity. This facility can be availed for further period of 5 years on the expiry of 20th years and yet another 5 years on the expiry of 25 years and so on. The option should be exercised within 1 year after expiry of 15 years or the extended block period by applying in Form H.

Subscribers who continue their account after 15 years, with fresh subscription, can make one withdrawal per year subject to the condition that the total of the withdrawals during a block period shall not exceed 60 percent of the balance to their credit at the commencement of the extended period.

Public provident Fund (PPF) Scheme-1968 Details

PPFThe deposit made under these rules shall bear interest at the rate of eight percent per annum from the date of deposit.

1.A PPF account can be opened by an individual in his own name or on behalf of a minor of whom he is the guardian or a body of individuals consisting only husband and wife  governed by the system of community of property in force in the union Territories of Dadar and   Nagar Haveli,Goa, Daman and Diu .

2. Only one PPF account can be opened by an  individual on his own behalf . However ,an additional account can be opened on behalf of a minor of whom he is the guardian or a Hindu undivided family by the Karta of which he is a member  or on behalf of  an association of persons or a body of individuals as refer to above.

3. A person having a GPF account can open a PPF account.


4. The account can be opened in the Head Post Office or in the branches of SBI or its subsidiaries or in the Nationalised Banks. The account can be transferred at the request of the subscriber from one Post office to another ,including Bank to Post Office and vice-versa.

5.  Minimum Amount Rs.500/- effective from 15.11.2002 in a  year ( year means financial year i.e. from 1st April to 31st March) Maximum Amount – in a year in Rs.70,000/-w.e.f. 15.11.2002.If contributions in excess of Rs.70,000/- are made during a year – Excess amount will be treated as “Irregular subscription and will neither carry any interest nor this excess amount will be eligible for rebate under section 88 of I.T. Act.  This excess amount will be refunded without any interest.

6. PPF account can be revived paying a fee of Rs.10 (Rs.50 effective from 15.11.2002) alongwith arrear of minimum subscription for each year of default before maturity .The default Fee must be credited to Govt Account under the Sub Head “0049”. (Not in Bank’s Commission Account).

7. Where a deposit is made by means of an outstation cheque or instrument, collection charges at the prescribed rate shall be payable alongwith the deposit and the date of realization of the amount shall be the date of deposit. 

8.    The subscriber can extend the account beyond  15 years for one or more block(s) of 5 years without any loss of benefits. Subscriber can continue to make deposit during this period.

9.  Withdrawal can be made any time after expiry of 5 years from the end of the year in which the initial subscription was made.The amount of withdrawal  should not exceed 50% of the balance at the end of 4th year immediately preceding the year in which the amount is withdrawn or at the end of the preceding year whichever is lower. Only one withdrawal is permisable in a year.

10.    The first loan can be taken in the third financial year from the financial year in which the account was opened upto 25% of the amount at credit at the end of the first financial year. Subsequent loan can be taken when the earlier loan with interest has been fully repaid.

11. The loan is repayment either in lump-sum or in convenient installments numbering not more then 36 . Interest at the rate of 1% above would be charged if loan is repaid in 36 month.Such interest should be paid in not more than 2 monthly installments .If the amount of loan is not repaid within 3 month, interest on outstanding amount of loan would be charged at 6%.Calculation of interest from 1st day of the month following the month in which the loan is drawn upto the last day of the month in which the last installment of the loan is repaid.

12. A subscriber may nominate one or more person to receive the amount standing to his credit in the event of his death . No nomination can, however, be made in respect of an account opened on behalf  of a minor (w.e.f.25.5.1994).Nomination may also be made in respect of an account on behalf of a Hindu undivided family(w.e.f.25.5.1994).Nomination may be cancelled or varied by a fresh nomination.

13. In the event of the death of the subscriber ,the amount standing to his credit can be repaid to his nominee or legal heir, as the case may be, even before the expiry of fifteen years. Legal heirs can claim the amount upto lakh without production of the succession certificate after observing certain formalities.

14.  Subscription to the PPF qualify for deduction from the taxable income of the subscriber for income tax purpose within the limits laid down under section 80-C of the income tax act.

15.The interest credited to the funds is not counted as income for the purpose of income tax.  The amount including the interest standing in the credit of the subscriber in the fund is also totally exempt from the wealth tax.

16.  PPF account are not transferable from one person to another.  In case of death of the subscriber, the nominee cannot continue the account of the deceased subscriber.

17. A female subscriber can change her name in the PPF account in the event of her marriage.

What is the difference between PPF & EPF?


A young reader wrote in telling us he has just landed his first job and has begun investing. He had a very basic question: What is the difference between PPF and PF?

We attempt to clear his doubts.

1. What is PPF and PF?


The Employee Provident Fund, or provident fund as it is normally referred to, is a retirement benefit scheme that is available to salaried employees.

Under this scheme, a stipulated amount (currently 12%) is deducted from the employee's salary and contributed towards the fund. This amount is decided by the government.

The employer also contributes an equal amount to the fund.

However, an employee can contribute more than the stipulated amount if the scheme allows for it. So, let's say the employee decides 15% must be deducted towards the EPF. In this case, the employer is not obligated to pay any contribution over and above the amount as stipulated, which is 12%.


The Public Provident Fund has been established by the central government. You can voluntarily decide to open one. You need not be a salaried individual, you could be a consultant, a freelancer or even working on a contract basis. You can also open this account if you are not earning.

Any individual can open a PPF account in any nationalised bank or its branches that handle PPF accounts. You can also open it at the head post office or certain select post offices.

The minimum amount to be deposited in this account is Rs 500 per year. The maximum amount you can deposit every year is Rs 70,000.

2. What is the return on this investment?

EPF: 8.5% per annum

PPF: 8% per annum

3. How long is the money blocked?


The amount accumulated in the PF is paid at the time of retirement or resignation. Or, it can be transferred from one company to the other if one changes jobs.

In case of the death of the employee, the accumulated balance is paid to the legal heir.


The accumulated sum is repayable after 15 years.

The entire balance can be withdrawn on maturity, that is, after 15 years of the close of the financial year in which you opened the account.

It can be extended for a period of five years after that. During these five years, you earn the rate of interest and can also make fresh deposits.

4. What is the tax impact?


The amount you invest is eligible for deduction under the Rs 1,00,000 limit of Section 80C.

If you have worked continuously for a period of five years, the withdrawal of PF is not taxed.

If you have not worked for at least five years, but the PF has been transferred to the new employer, then too it is not taxed.

The tenure of employment with the new employer is included in computing the total of five years.

If you withdraw it before completion of five years, it is taxed.

But if your employment is terminated due to ill-health, the PF withdrawal is not taxed.


The amount you invest is eligible for deduction under the Rs 1,00,000 limit of Section 80C.

On maturity, you pay absolutely no tax.

5. What if you need the money?


If you urgently need the money, you can take a loan on your PF.

You can also make a premature withdrawal on the condition that you are withdrawing the money for your daughter's wedding (not son or not even yours) or you are buying a home.

To find out the details, you will have to talk to your employer and then get in touch with the EPF office (your employer will help you out with this).


You can take a loan on the PPF from the third year of opening your account to the sixth year. So, if the account is opened during the financial year 1997-98, the first loan can be taken during financial year 1999-2000 (the financial year is from April 1 to March 31).

The loan amount will be up to a maximum of 25% of the balance in your account at the end of the first financial year. In this case, it will be March 31, 1998.

You can make withdrawals during any one year from the sixth year. You are allowed to withdraw  50% of the balance at the end of the fourth year, preceding the year in which the amount is withdrawn or the end of the preceding year whichever is lower.

For example, if the account was opened in 1993-94 and the first withdrawal was made during 1999-2000, the amount you can withdraw is limited to 50% of the balance as on March 31, 1996, or March 31, 1999, whichever is lower.

If the account extended beyond 15 years, partial withdrawal — up to 60% of the balance you have at the end of the 15 year period — is allowed.

The better option?

In both cases, contributions get a deduction under Section 80C and the interest earned is tax free.

Having said that, PF scores over PPF in two aspects.

In the case of PF, the employer also contributes to the fund. There is no such contribution in case of PPF.

The rate of interest on PF is also marginally higher (currently 8.50%) than interest on PPF (8%).

Public Provident Fund (PPF) Summary

  • Public Provident Fund (PPF)The Public Provident Fund Scheme is a statutory scheme of the Central Government of India.
  • The Scheme is for 15 years.
  • The rate of interest is 8% compounded annually.
  • The minimum deposit is 500/- and maximum is Rs. 70,000/- in a financial year.
  • One deposit with a minimum amount of Rs.500/- is mandatory in each financial year.
  • The deposit can be in lumpsum or in convenient installments, not more than 12 Installments in a year or two installments in a month subject to total deposit of Rs.70,000/-.
  • It is not necessary to make a deposit in every month of the year. The amount of deposit can be varied to suit the convenience of the account holders.
  • The account in which deposits are not made for any reasons is treated as discontinued account and such account can not be closed before maturity.
  • The discontinued account can be activated by payment of minimum deposit of Rs.500/- with default fee of Rs.50/- for each defaulted year.
  • Account can be opened by an individual or a minor through the guardian.
  • Joint account is not permissible.
  • Those who are contributing to GPF Fund or EDF account can also open a PPF account.
  • A Power of attorney holder can neither open or operate a PPF account.

Public Provident Fund (PPF)

  • The grand father/mother cannot open a PPF behalf of their minor grand son/daughter.
  • The deposits shall be in multiple of Rs.5/- subject to minimum amount of Rs.500/-.
  • The deposit in a minor account is clubbed with the deposit of the account of the Guardian for the limit of Rs.70,000/-.
  • No age is prescribed for opening a PPF account.
  • Interest is not contractual but rate is notified by Ministry of Finance, Govt. of India, at the end of each year.
  • The facility of first withdrawal in the 7th year of the account subject to a limit of 50% of the amount at credit preceding three year balance. Thereafter one Withdrawal in every year is permissible.
  • Pre-mature closure of a PPF Account is not permissible except in case of death.
  • Nominee/legal heir of PPF Account holder on death of the account holder can not continue the account, but account had to be closed.
  • The account holder has an option to extend the PPF account for any period in a block of 5 years on each time.
  • The account holder can retain the account after maturity for any period without making any further deposits. The balance in the account will continue to earn interest at normal rate as admissible on PPF account till the account is closed.
  • One withdrawal in each financial year is also admissible in such account.
  • The PPF scheme is operated through Post Office and Nationalized banks.
  • PPF account can be opened either in Post Office or in a Bank.
  • Account is transferable from one Post office to another and from Post office to Bank and from Bank to Post office.
  • Account is transferable from one Bank to another bank as well as within the bank to any branch.
  • Deposits in PPF qualify for rebate under section 80-C of Income Tax Act.
  • The interest on deposits is totally tax free.
  • Deposits are exempt from wealth tax.
  • The balance amount in PPF in PPF account is not subject to attachment under any order or decree of court in respect of any debt or liability.
  • Nomination facility available.
  • Best for long term investment.