How To Transfer A Public Provident Fund Account To SBI
Public Provident Fund (PPF) account, a retirement planning-focused instrument, offered by banks such as State Bank of India (SBI) and post offices enjoys an "exempt, exempt, exempt" (EEE) tax status. This means that the returns, the maturity amount and the interest income are exempt from income tax. For the current quarter, investment in a PPF account fetches interest at the rate of 8.0 per cent per annum. According to the PPF scheme, subscribers can transfer their account from one authorised institution, such as a bank or a post office, to another, according to SBI's website - sbi.co.in.
Here are five things you need to know before opening a Public Provident Fund (PPF) account with SBI:
1. How to apply for PPF scheme through SBI: To apply for the PPF Provident Fund (PPF) scheme, customers are required to fill Form A (that is meant for PPF accounts) and submit it at any SBI branch with relevant documents. The PPF account will be opened in one of the branches, according to SBI's website. Subscribers must mention the name of branch where he/she wishes his/her Public Provident Fund (PPF) account to be opened on Form A.
2. Eligibility for investment under SBI's PPF: A Public Provident Fund (PPF) account can be opened by resident Indian individuals and individuals on behalf of minors, according to SBI's website. A PPF account can also be opened either by the mother or father on behalf of their minor son or daughter; however the mother and father both cannot open PPF accounts on behalf of the same minor. Grandparents cannot open a PPF account on behalf of minor grand-child; however, in case of death of both the father and mother, grand-parents can open a PPF account as guardians of the grandchild.
3. Documents required for opening a PPF account with SBI: For opening PPF account with SBI, the subscriber must have a nomination form, passport size photograph, copy of PAN (Permanent Card Number) card and residence proof as per bank's KYC (Know Your Customers) norms.
4. Minimum/Maximum amount that can be invested under SBI's PPF: A minimum of Rs 500 subject to a maximum of Rs 1,50,000 per annum can be deposited in PPF account. The subscriber should not deposit more than Rs 1,50,000 per annum as the excess amount neither earns any interest nor is eligible for rebate under Income Tax Act. The amount can be deposited in lump sum or in a maximum of 12 installments per year.
5. How to transfer existing PPF account maintained with another bank/post office to SBI: To transfer the existing PPF accounts to SBI, the subscriber is required to approach the bank or the post office where his/her current PPF account is held and make an application for transfer of PPF account to the desired SBI's branch. Once the application is processed, the existing bank/post office arranges to send the original documents such as a certified copy of the account, the account opening application, nomination form, specimen signature etc. to SBI branch address provided by the customer, along with a cheque/DD for the outstanding balance in the PPF account.
