New To SBI PPF Interest Rates? Learn More About Them Here
Published On Jan 06, 2022 10:00 AM By InsuranceDekho
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The SBI Public Provident Fund (PPF) is a well-known long-term investing option in India. The Government of India offers competitive interest rates and returns through this scheme, as well as security. Under Section 80C of the Income Tax Act, PPF returns are totally tax deductible. You can get loans, withdrawals, and account extensions if you open a PPF account.
The SBI PPF interest rate is 7.1 percent per annum as of 1 April 2020. (compound annually).
Benefits of An SBI Public Provident Fund Account
The following are the main characteristics and advantages of creating an SBI Public Provident Fund account:
- If the amount is needed for the treatment of serious ailments or life-threatening diseases of the account holder, spouse, dependent children, or parents, prepayment is permitted only after the account holder has completed five fiscal years and supporting documents from a competent medical authority have been produced.
- A Rs. 500 minimum investment is required in an SBI PPF account. A calendar year's worth of deposits is limited to Rs. 1,50,000.
- The investment will be held for 15 years. After that, you can choose to extend your investment for one or more 5-year blocks.
- In your SBI PPF account, you can name one or more people. You can then define each nominee's portion as a subscriber.
- Your SBI PPF account can be transferred to other SBI branches, other banks, or Post Offices, as well as the other way around. You can use the service for free if you are a member of the scheme.
- The Central Government sets the interest rate on SBI PPF accounts every quarter. The SBI PPF interest rate for the quarter ending December 2021 is 7.10 percent per year.
- You may be able to get loan and withdrawal facilities depending on the age and balances of your account. These facilities' permissions are valid as of the application deadlines.
- Separate Public Provident Fund accounts for the same youngster are not permitted by both parents.
- A Public Provident Fund account can be opened by Indian citizens. Other persons in India have the ability to open accounts for minors on their behalf.
- Grandparents can only take care of minor grandkids who have lost both parents. They are, however, unable to set up a PPF account for their grandkids.
The State Bank of India (SBI) has a nationwide presence and can be found in even the most isolated locations. SBI is the preferred method of opening and investing in Public Provident Funds. Public Provident Fund or PPF accounts are offered by a number of organisations, including commercial lenders like State Bank of India (SBI). The PPF plan, which was created by the National Deposits Organization in 1968 to mobilise small savings, provides an investment route with acceptable returns as well as income tax benefits, according to the SBI's website, sbi.co.in.
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Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.