SBI Customers can avail tax benefit of Rs 1.5 lakh with this simple trick

Public Provident Fund Limited (PPF) is considered to be one of the risk-free investment options that starts yielding average returns above inflation. It is a good savings scheme offered by the Government of India with the aim to providing a secure post-retirement life to everyone.

PPF is one investment schemes that falls under the Exempt-Exempt-Exempt (EEE) category. The interest earned and the returns are not taxable under Income Tax. PPF allows a minimum investment of Rs 500 and a maximum of Rs 1.5 lakh for each financial year. You can invest in a lump sum or in a maximum of 12 instalments. The PPF has a minimum tenure of 15 years, which can be extended in blocks of 5 years as account holders wish.

Current interest rate in PPF account

The PPF account offer a interest rate of 7.1 percent that is compounded annually. You can open a PPF account at post offices or authorized commercial banks. For example, State Bank of India (SBI) provides the facility to its customers to open a PPF accounts online. The PPF accounts also offers tax-saving benefits.

To open a PPF account you will need to submit the documents mentioned below.

• Duly filled account opening application form
• KYC documents such as Aadhaar, Voters ID, Driving license, etc.
• Passport size photograph
• Permanent Account Number (PAN) card copy
• ID proof and residence proof
• Nominee declaration form

How to open an account in SBI

• Log in to onlinesbi.com.
• Go to the ‘Request and Enquirers Tab’ tab and click on ‘New PPF Account’ option.
• Click on the ‘Apply for PPF account’ section.
• Enter the branch code from where the account is to be opened.
• Fill the details of the nominee and submit it.
• After successful submission of application form, you will get an application number.
• You can print the account opening form from the tab ‘Print PPF Account Online Application’.
• You can get more information by visiting the bank branch.

Deposit Frequency: Deposits into a PPF account has to be made at least once every year for 15 years.

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