Public Provident Fund or PPF, a retirement-focused investment instrument, enjoys an EEE (Exempt-Exempt-Exempt) tax status. This means that the returns, maturity amount and the overall interest earned during the period of investment are tax-free.
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Currently, the PPF account offers an interest rate of 7.1 percent. This is calculated on the minimum balance in the account between the fifth day of the month and the last day of the month.
As per experts, periodic investments in PPF for a long-term can do the trick with the power of compounding.
Commercial banks such as State Bank of India (SBI) allow customers to open PPF account online. The documents required to open PPF accounts are - nomination form, passport size photograph, copy of Permanent Account Number (PAN) card, ID proof and residence proof as per bank's KYC norms.
Here are the steps to open PPF account in SBI:
Step 1:
Visit SBI net banking portal - onlinesbi.com and log in
Step 2: Go to 'request and enquirers tab' and click on 'New PPF account' option
Step 3: Click on 'Apply for PPF account' section. All existing details such as name, PAN and address will be displayed.
Step 4: Enter the branch code from where the account is to be opened. One can open the PPF account with any of the branch of SBI
Step 5: Now, enter nominee details and submit
Step 6: An application number will be displayed along with a message of successful submission. Print the account opening form from the tab 'print PPF account online application'
Step 7: Visit the branch with Know Your Customer (KYC) documents and photographs within 30 days. The account opening form is deleted after 30 days from the date of submission, according to SBI.
(Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.)
First Published: Aug 13, 2020 2:51 PM IST
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