The interest rate on PPF is fixed by the government and is revised quarterly. PPF comes with a duration of 15 years, and currently, the interest rate on PPF is 7.1 per cent.
SBI PPF Account: Public Provident Fund (PPF) accounts are one of the most popular long-term investment options in India. Since the State Bank of India is the largest Indian commercial bank, many people prefer opening a PPF account in SBI as investors would find more branches of the bank across the nation. Industry experts also say the SBI PPF account is considered one of the best PPF options in India.
The interest rate on PPF is fixed by the government and is revised quarterly. For the July-September quarter of FY 2020-21, the government kept the interest rates on post office small savings schemes unchanged. For the previous quarter, April-June 2020, the government had slashed rates of these small savings schemes by 70-140 bps. In the second quarter as well if the government would have cut rates in the same way then PPF would have fetched returns below the 7 per cent mark, which would have been a 46-year low.
After the second quarter of FY 2020-21, according to the Department of Posts circular dated July 1, 2020, PPF continues to earn a 7.10 per cent interest rate. (100 bps = 1 per cent)
As per the Public Provident Fund Scheme 2019, the PPF account can be opened by any adult Indian citizen. Keep in mind an investor can open only one PPF account, however, the PPF account can also be opened on behalf of a minor as well. On behalf of a minor child, his or her parents can open a PPF account, but not both parents can open the PPF account for the same minor child. PPF comes with a duration of 15 years, and currently, the interest rate on PPF is 7.1 per cent.
How to open the PPF in SBI?
For an earning individual looking to invest in PPF through SBI, then he/she will have to fill up Form-A. The form needs to be submitted with additional necessary documents to any branch of SBI. Note that the PPF accounts can be opened in any one branch. Hence, while filling up the Form-A, the depositor will have to provide the information about the branch where he/she wants to open the PPF account.
To open the SBI PPF account, the documents required include Form 60-61, a nomination form, PAN card copy, passport size photo, copy of ID proof, along with Form-A, and residence certificate document as per KYC rules of the bank.