Opening a PPF Account in SBI Bank

PPF is an effective tool to save tax as well retirement planning tool. Majority people open their PPF account with State Bank of India. Here are the 3 easy steps of opening a PPF account in SBI branch.  The whole process does not take more time if you go prepared with all the documents that are required. The biggest advantage of opening the PPF account with SBI is the online transaction facility you can use to deposit in your PPF account online and dont have to rush to the branch.

3 Steps of Opening a PPF Account in SBI Bank

1) Choose a SBI branch which is authorized to go government business.

Usually all branches of SBI are authorized to do so. However newer and smaller branches may not have this clearance facility. One doesn’t need to have a Saving Bank  account in that branch. 

2) Procure and submit PPF account opening form and Identity/address Proofs

It would only 3-5 minutes to fill. Choose a nominee which is compulsory and get a witness signature. Now you have to submit anyone of following Proofs.

·         Passport

·         Pan card

·         Driving license

·         Voter id

·         Ration card

·         Two Passport Size Photographs

Any government issued identity card or address proof should work. Keep originals for proof in hand to simplify the verification if needed. That’s it. The bank should now be able to open the account and it is matter of few minutes.

3) Get PPF Passbook

A pay-in slip needs to be filled and the initial subscription needs to be credited into your account. A passbook similar to a Saving Book passbook will be issued with your photo affixed and the nominee’s name stated.  PPF rules can be found on the back. This is all, your PPF account in SBI is opened now.

How to Link your Online SBI Account to SBI PPF account for Online Transaction

If you have an online SBI account, you can add the PPF account as a third party accountfor transferring money directly. As mentioned above the PPF account can be in any SBI branch. There are no processing charges for doing this transfer. When you do this online for the first time, go to the bank and update your PPF passbook and check if the transaction has occurred correctly. This has to be done since you cannot look at the amount in the PPF account as yet in SBI. This is a major drawback of SBI-PPF (and post office) accounts.

A standing instruction maybe issued from your online account for auto-credit to PPF. There are only 12 credit transaction allowed per year. So take care of this before issuing a standing instruction.

How to Transfer your PPF account from One Bank to Another

·         Go to the branch where you want to transfer your PPF account and deposit an application with your PPF passbook

·         takes 10-15 minutes

How to Submit Proof for Tax

Take photocopy of the PPF passbook updated with all transactions.