Most of us want to open PPF account, but keep postponing it just because we don’t want to take action. Most of the people want to open their PPF accounts with the most trusted bank in India , which is State Bank of India . Let us see 3 easy steps of opening a PPF account in SBI branch, the whole process does not take more than 30-45 minutes if you prepare in advance and go with all the documents required and there are no blockings in between . 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 every now and then . Read why you should open a PPF account even if you dont need it right now .
3 Steps of Opening SBI PPF Account
1) Choose a SBI branch which is authorized to go government business.
Usually any ‘large’ branch with lots of customers should do. Usually newer and smaller branches may not have this clearance.
One doesn’t need to have a Saving Bank account in that branch. Locate your nearest SBI Branch using this
2) Procure and submit account opening form and Identity/address Proofs
It would only 3 minutes to fill. Choose a nominee 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 or address proof should work. Keep originals of proof in hand for verification if needed. Thats it. The bank should now be able to open the account. Usually it may take about 20 minutes or so.
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 is opened now .
How to Link your Online SBI Account to SBI PPF account for Online Transaction
If you have a online SBI account, you can add the PPF account as a third party account for transfer. As mentioned above the PPF account can be in any SBI branch. There are no processing charges for 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. However there are two disadvantages
- Rarely there maybe system failures and the standing instruction may not get honoured. So you need to check if it has occurred.
- You cannot subscribe a lower amount if you need the cash for emergency use (this situation wont arise if you had an emergency fund )
- You need to go to the bank to cancel the standing instruction .
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 xerox of the PPF passbook updated with all transactions and get it attested in the branch. (not sure if the attestation is really required) [ Update 5th Feb , thanks for Mithilesh ]
Other points to Consider
Subscriptions must be made before the 5th of every month for the amount to taken into account for interest calculation for that month. If you want to open an account in the name of a minor in addition to yours the total limit of subscription is Rs. 70,000/-. The total tax benefit is also the same. This is a new rule and is not yet printed in the PPF passbooks! See Here , Here and Here for more detail
An excellent ppf calculator can be found here
- Calculator at Caclubindia (Registration required)
- Calculator at Personalfn
Comments please , Are you going to open your PPF account this year ? Do you feel PPF account should be opened at Post Office ? Why ?
Note : The same procedure will be applicable for most of the other nationalised bank , but it can differ a little bit .
Credits : Thanks for Pattu for providing these Steps and I thank him for the contribution . Pattu is one of the best and most valuable reader and contributer on this blog and His comments are thought provoking and worth reading always 
.
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Thanks Manish for another excellent post. Though had a fair idea on PPF but now you have explained the fine granualities, never heard about the online facility. I have ppf account with state bank of bikaner and jaipur bank. Since i don’t have an acc. with SBI, I would be able to awail the online facility.
Keep up the good work. Yes i totally agree that Pattu contributes a lot to this blog and i make sure to read his comments too…
Rakesh
Rakesh
So you can do the online payment to SBI PPF account with other bank Account ? I thought that you cant ? Did you try that ? Let me know more .
Manish
Yes Manish, As I already commented below, We can do the online transfer of money to our PPF account as confirmed by the SBI Bank Officer.
.-= Amandeep SIngh´s last blog ..What is a ‘Reverse Mortgage’ Scheme? =-.
Amandeep
Great , In that case I can transfer from my ICICI Account itself , no need to open a new account in SBI . Do you think ICICI account PPF account can have some issue ? As its a new thing these days . Have to find out more on that
Manish
Hi Manish,
I am using SBI Savings and PPF Account and I am regularly crediting money from my SBI Savings account to PPF Account. This transfer is a Credit to PPF Account transfer in Online SBI and not a NEFT transfer so I think you can not transfer from ICICI Bank to SBI PPF direct. Please check it with the bank. However, this facility of online transfer has made my life easy and even for giving income tax prrof I can take the statement online and submit.
i am sbi account open for details devlivery for my email id’s completed then used my open the account. please recived for deteails coming soon for my id proof.
Thanking You
by MARIMUTHU R
MARIMUTHU R
I am not clear what u want ?
Manish
Thanks Rakesh. State Bank of Bikaner falls in the state bank group. So if you open an acc. there you could pay online. Also see if Jaipur bank allows you to enter a ppf acc as a inter bank transfer acc. Then you could pay by NEFT or RTGS. But make sure you check with them and try out a small amt transfer to see if it works.
@Pattu
It’s State Bank of Bikaner & Jaipur(SBBJ)
Not State Bank of Bikaner
And Jaipur Bank.
Pattu
So If we have a PPF account with SBI and any SB account with a Nationalised Bank , we should be able to do the online transfer to PPF account . Why its not possible with ICICI or HDFC ? Bank restriction or PPF restriction ?
manish
Neither a restriction from the bank nor from PPF
Please correct me if I am wrong… I have made a test transaction of some amount from my ICICI account to my PPF account. Will update here when I get my passbook updated… think the amount should be credited tomorrow or Monday
.-= Amandeep SIngh´s last blog ..What is a ‘Reverse Mortgage’ Scheme? =-.
From the thread below it looks like we can transfer by NEFT/RTGS to PPF. Which is great. I haven’t tird this myself.
Pattu
Great , In that case we now know that we can transfer from any X bank to our PPF account which is open at any Nationalised Bank
. Great 
Manish
I like your post especially now that you have started putting up graphics in them . Makes them look good and probably easier to understand. PPF has always been in my “to do” list
but last time I went to SBI they were not very enthusiastic to open a PPF account. They tried to push me for FD. So i am still without a PPF account. Reading your post I think I am gonna try once more. Would let you know my experience this time 
.-= Amit Kumar´s last blog ..Who is my competitor? =-.
Amit
Thanks Amit , I will try to put more of graphics now onwards , infact I am doing that already from last many posts
. Did you ask them questions like What is the reason they are not opening up your PPF account and Do you need to file an RTI for this to get answers ? I am sure they will do it faster then .
manish
Well guess whats the first question SBI asked me when I said that I want a PPF account in there branch –
Why SBI?
& I was damn !@#$%^ – SBI should explain me why I should come to them rather than they asking me Why I actually came to them. So i don’t think their “Sarkari” attitude has changed.
But as for PPF Account is concerned you can also open in ICICI Bank but I don’t know why they don’t market it. Probably its because their own FD rates are lower than assure 8% rates of PPF.
.-= Amit´s last blog ..Why Sachin Tendulkar does not endorse any Mutual Fund Product? =-.
Hehe .. may be yes , thats the reason they dont advertise it . But its very new and I also have just heard about it for now .
Manish
“last time I went to SBI they were not very enthusiastic to open a PPF account. They tried to push me for FD”
This represent serious conflict of interest and is downright wrong. I think your bank wanted to push FDs for their own sake and their statistics.
Pattu
Can we not directly ask them the reason they are not very much ready for PPF account opening and What do they gain personally by opening a FD , any commission kind of thing here ? What is the conflict of interest in this case ?
Manish
Bank gains nothing if someone opens an PPF. Maybe a small fee from RBI. Whereas with FD SBI I guess gains better liquidity for lending etc.
The conflict is, every bank has some target every quarter to achieve in terms of SB, RD and FD accounts. So by pushing for FD the bank is looking at its own interest not the customers. Hence the conflict.
Pattu
Ok . I never thought that way . I was looking at banks from convenience point of view to customers and not a business
. What you suggested makes sense . Good one .
Manish
Never knew the the process is so simple! Good detailed article Manish.
.-= Mohan´s last blog ..Bus Day Bangalore – 4th Feb =-.
Thanks Mohan
What do you think about the ICICI giving PPF accounts online . Do you think it will be liked by people in India ?
Manish
Hi manish, ,
(This has to be done since you cannot look at the amount in the PPF account as yet in SBI)
if we have online SBI account,then PPF account is linked to main account automatically ,
so we can check balance , transfer to PPF also done easily,there is no need to go to bank for checking balance,
i am having SBI account and PPF account from last 8 months..
Ramanji
Nice to know that. Pattu , Can you do this for yourself and confirm .
Ramanji , What was the reason you went for SBI and not Post offices ? Is it just convenience ?
Manish
Nice post.
I have my PPF account with the Post Office. How do I shift it to SBI?
Saurabh
Here is how you can transfer it .
The State Bank of India/its subsidiary will issue an “Account Payee Cheque” or a Demand Draft for an outstation transfer. The “Account Payee Cheque” will be in favour of the transferee Head Post Office along with a certified copy of the ledger and all other related records in original like -
o application for opening the account
o application form
o signature cards and
o nomination forms.
The cheque/draft will be drawn by designation and will indicate that it relates to PPF Account No……….. On receipt of the PPF account on transfer with the cheque or draft from the bank, the account will be opened at the transferee Head Post Office like any other new account is opened. The transaction will not be included in the credit transfer journal but will be entered in the list of transactions like other new accounts opened by cash.
Again a good post…
I think a very important point is that, you start PPF account now. Though you don’t want to put much in PPF now… just maintain it at cost of Rs500/year. When 10 years down the line, you think you need some short-term & secured returns, put max in PPF. You will get amount after 5 years with the interest rate prevailing at that time.
Keep up the good work Manish and Pattu.
Regards,
Anup
Anup, as of now I also have opened the account with the same plans in mind (after reading the post by manish, to be honest
) I was already planning to have since the last 6 months, but at last I made the move 
Anup
You are correct . I have already discussed it on http://www.jagoinvestor.com/2009/08/why-to-open-ppf-account-even-if-you.html
But why just 500 ? dont you need to invest in your Debt part ? Are you more of Equity kind
?
Manish
The SBI branch in which I have an account in Pune showed much disinterest when I tried to open a PPF account in the name of my spouse & minor child. Also, they repeatedly gave me incorrect information that “As per new RBI rules, PPF account cannot be opened in the name of minors”. This is sheer lies. They do not have any incentive to operate PPF account, I think. I went to the local post office and was able to open both the accounts in a matter of minutes, no questions asked. I didn’t even take help from any PPF agents in the post office. There are quite a few PPF agents in post offices if you don’t feel like standing in the line for a few minutes. I don’t mind making an annual trip to the post office than put up with the callous attitude at SBI every time.
mayur
thats very bad to know . How can SBI do this . I dont understand why they are not very keen on opening PPF account for customers ? Do they loose on anything or is it just paper work ?
How much time did it take for post office , was it just minutes
?
Manish
Manish
I think as PPF is Govt. of India’s Scheme & funds are utilised by Govt.; SBI try to demotivate people & redirect them towards FDs.
Hemant
Yeah . that makes sense . Pattu told me the same thing and that looks logical . In that case , we better have PPF at post office if its going to be bad service issue from Bank
.
Ohh my , in that case how will other private banks treat it , Considering they want to manufacture ULIP’s with amazing speed , they will never advertise about PPF .
What do you feel on that ?
Manish
When you open a PPF account in Post-office you generally get 1% commision from the agent on the amount you deposit in PPF. I am not sure if you get any commision by opening an a/c in SBI.
PK
Am I hearing it correct ? We get commision from agents ? So if I pay 50k in my PPF account , we get 500 from them ? Really ? Why ?
manish
Post office pays 1% commission to the agent through whom you opened PPF account. He gets 1% only when you deposit money via him. so It’s a mutual benefit.
you can negotiate a deal with your agent to pay back 0.5%.
I do such negotiation. but I am not going to deposit more than 500Rs for another 6 years. after I complete 10 years of PPF. I will deposit money for risk free and medium returns.
//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//
Manish, i have savings a/c with netbanking facility and PPF a/c in same branch of SBIafter reading your blog only, last month i opened an PPF a/c in SBI. Thanks to you.
Rajesh
Nice to know this . What are you using this PPF account for . You have have a clear goal associated with it ? Is there any ?
Manish
Thanks Manish ,
PPF account NRI Can able to open?.
Regards,
Raja
PRaja
I have some clients who did . But I am not sure how . As per rules they can not . I need to dig out more on this . Wait for some time so that I can get it in a post .
Are you an NRI ? Where ?
Manish
Hi Manish.
Singaopre, my friend checked in local bank they said can’t open. Pl. find any way to open. thanks Raja
NRI’s cannot open PPF account.
Manish good post, and you will be glad to know that i do have ppf and saving a/c in sbi and i transfer online from saving to ppf…..
this time i have tried standing instructions.. let see if it works out…
i didn’t know that 5th wala funda.. but good to know this..
Marshal
Nice to know that . the interest is calculated on 5th always , so people try to put most by 5th so that they get interest on most of it . If you have 50k in your account on 4th and then you deposit 50k on 6th , you loose out on 50k interest
Manish
I wanted to open a PPF account in SBI but the branch near my place which also has ample parking space nearby does not offer this facility and the next nearest branch which offers PPF accounts is in a very congested locality where it would be extremely difficult to find a decent parking spot. Also the employees of that branch were not too keen on offering the PPF facility to me. Hence I walked in to the nearest post office and opened one. People may laugh at the criteria I used to select where to open my PPF account, but I did what I felt was good
Anand
I think its fine that you open PPF at post office . SBI is not the only one . we are having this post as most of the people like SBI bank for banking and will have atleast one account in SBI .
Overall , the last thing is what we are comfortable about . So are you facing any issues with your PPF with post office ?
Manish
Yes. Comfort is important. I also have a PPF account in a post office near my home. It’s just a once in a year payment. so no problem.
Manish – I am finding the Post Office very convenient and the staff there is also genial.
Even opening in a post office doesn’t take much time. Do choose post office only when you have your permanent address there as PPF is your long term commitment. And PPF will be available in all the head post offices in your area and everyone will be more than willing to open the account. Also, it is better to invest the amount in PPF at the start of the financial year itself instead of waiting till the end of the financial year.
You can also go via an agent, if you prefer to and he will get 1% commission. He will certainly make your life easier.
And believe me, always there will be some rush in the post office while paying your premium and it doesn’t come with the comfort of sitting in your chair
.-= Manickkam´s last blog ..Recharge with rechargeitnow.com =-.
Manickkam
Does the agent get commission of 1% from our money ? Who pays him ?
Manish
Hope it would be the government. Not exactly sure though. But the entire amount will be shown in your account even though you go via the agent.
.-= Manickkam´s last blog ..Recharge with rechargeitnow.com =-.
Ok , I guess Govt can afford to do that for the first timers . Because anyways govt is also getting cheap credit @8%
.
Manish
yes. govt pays him. I have visited post office with my agent, as I paid my premium; he got 1% back in his hands and he gave me 0.5%.
It’s a commission provided by govt to attract agents and investors.
Hi,
Ya To Open a PPF a/c in SBI Branch is very simple task. In last month i opened my PPF a/c so it took my 1 hr hardly including form filling and all stuff. I have a little doubt here we can not check amount deposit in that a/c is it so?
and yes u can transfer the money from net banking from any bank.
Praful
As per the article , we have to do it manually for the first time for checking the amount and better if we can verify it
Are you not able to do so ? How were you managing it till now ?
Manish
Manish,
Now Bajaj Allianz ULIPnhas come up with 170% return guarantee. Any comment on that.
Yes… Even i came across many such schemes from almost all Insurance Co’s.
Manish & Pattu – Please need a article on such “Guaranteed Returns” schemes.
~Anup
@anup & @krishna
170% of first year premium is 2.7% Comp. Annualised Return in 20 Years.
This is GURANTEE.
Hemant
I think its 10 yrs and not 20 yrs product ? No ?
Manish
Manish
I have not gone through particular bajaj product.
Some time back I reviewed Bharti Axa Aspire Life (ULIP) with similar guarantee. (160% of 1st year premium)
http://tflindia.blogspot.com/2009/08/insurance-schemes-or-insurance-scams.html
Hemant
I just read that article and my god , what was that , I can not imagine more than 100% allocation charges
. After reading that AXA article , i feel this 170% policy rocks !! .
Manish
Krishna And Anup
come on guys , I am sure you guys are capable of evaluating the policy . 170% return in 10 yrs ? Does that makes sense to you ? you pay 100 and you get 170 at the end . total crap .
http://economictimes.indiatimes.com/personal-finance/insurance/insurance-news/Bajaj-Allianzs-new-Ulip-to-offer-170-returns-in-10-yrs/articleshow/5431556.cms
Looks like LIC endowment policies have some competition here . Please check in detail . I am talking from space .
Manish
Manish,
Even I have read about the Bajaj Allianz Shield Plus Plan which offers 170% Guaranteed return. I think I will share the details as below
http://www.indiastudychannel.com/resources/102030-Bajaj-Allianz-launches-Shield-Plus-with.aspx
Great
Thanks for the link , What do you personally thing about it ?
manish
I have an online account with SBI and it never cmae to my mind about the online transfer.
thanks for the information. what about the receipt for claiming tax rebates.
do we have to take a print out.?
excellent article
ganesh
Ganesh
Yes , you take the xerox of PPF Passbook and get attested with the branch . I updated the article with this .
So till now you were paying manually
? Lets bank in new india 
manish
SBI gives you instantly an e-receipt when transferring online…this is something i have submitted in payroll and no issues
See here sample of e-receipt
http://www.4freeimagehost.com/uploads/d835522b3e8c.png
Marshal
Great , so it means we can get the reciept instant and incase we need , use it for some tax purpose too ?
Wondering if post office has something like that ?
Manish
Again nice article. When I opened my ppf 3 years back in post office, I talk to the officer for moments. He told me that the money you deposit in PPF is belongs to RBI only. At the end of day, all banks or post offices where you deposited money must transfer it to RBI. So, there’s no need to go for ‘trusted’ or secure entities. You can open in any bank or post office which are authorized and most convenient to you.
Regarding online transfer, this is something I think I am not able to use with PPF account opened in post office. Any thought, if its possible or its only possible if I transfer my account to SBI as I already have saving account with SBI.
another note, transferring your PPF account is very easy.. just submit an application and your PPF passbook to branch (bank or post office) where you want to transfer and they will communicate to original one to transfer. I have done this from one post office to another and it took hardly a month to get things done.
Jagbir
Yes , PPF is backed by RBI , so one can open PPF from anywhere ,even ICICI has started doing it now .
I do not understand if you are “asking” about the transfer or telling us ?
manish
manish, I written ‘I have done this’ so this is actually my experience that transferring your PPF is easy. If ICICI is also started this, definitely a good news at least for me as all my primary a/c like salary, demat etc are with ICICI.
.-= Jagbir´s last blog ..QuickTip use exim for normal mail but stop for secure smtp server =-.
one more thing manish. Entries in my pass book doesn’t showing any interest addition since inception. Entries are added manually by clerk, signed by one other employee also. So at this moment, only the amount I’ve deposited upto now is there in passbook. Is this the normal scenario?
.-= Jagbir´s last blog ..QuickTip use exim for normal mail but stop for secure smtp server =-.
Jagbir,
How long has it been since you started the acc.? Interest credited will be shown in the passbook
My a/c is started from 25th March, 2008 but only original amount entries are there in passbook. Should I request them to update entries with interest earned till date or its ok?
btw, as this passbook is for manual entry, I hope if I transfer a/c to SBI or ICICI, I’ll get a passbook where entries should be computerized. what you say?
.-= Jagbir´s last blog ..QuickTip use exim for normal mail but stop for secure smtp server =-.
Jagbir
Thats fine , The interest is always credited at the end of the year only . So still you have not completed 1 yr of your PPF . It will come by the end of year .
Manish, date of my opening account is 25th March, 2008.. its 2008 year so already completed one year on march, 2009 and now going to complete 2 years on coming march.
.-= Jagbir´s last blog ..QuickTip use exim for normal mail but stop for secure smtp server =-.
Jagbir
Err … thats my mistake , In that case , you should contact officials and find out why its not showing up the interest
.
Manish
In that case you must receive Interest for the period April 2008 till March 2009.
I have a PPF account in post office. My passbook has interest credited entries. please talk to post office ppl.
@ganesh kamath, for claiming tax-exemption you have to submit a xerox copy of your PPF passbook containing updated entry of the payments made in the current financial year.
Hi,
I was planning to open up a PPF account since last many months but was getting delayed without any specific reason… I opened my PPF account 3 days back only and it took only 15-20 mins max.
Manish you mentioned “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…” I happened to ask the same question to the bank employee. She confirmaed that I can transfer the funds online from any Account (in my case ICICI).
.-= Amandeep SIngh´s last blog ..What is a ‘Reverse Mortgage’ Scheme? =-.
Amandeep
Ya , I was not aware that we can do that from any bank , this is “Kushkhabri”
. I wanna to try PPF account with ICICI bank 
. Lets see
Manish
Thanx manish for the excellent and easy -to-understand article.
I’ve a savings account as well as PPF account in SBI. This is very easy as the accounts are linked and we can transfer money to PPF within seconds.
For IT proof, I take xerox of the PPF passbook updated with all transactions and get it attested in the branch.(not sure if the attestation is really required)
Mithilesh
Thanks for the tax proof advice , i have added it in the original article
. It will benefit readers 
Manish
I’m surprised to hear so many complaints about the way SBI staff seem to treating PPF investors. My wife is planning to shift her account from the PO to an SBI branch. Let me see how they handle it. Will update you on it.
Regards
Vinod
Vinod
So as per the discussions , we have come to conclusion that PPF is a govt thing finally and hence it goes to RBI , Banks do not have any incentive or may be very small incentive to have PPF accounts, rather they are more interested in FD’s which atleast help them get cheap money which they can then lend to get more on interest .
What are the other alternatives you can think of ? Are you thinking of PPF at post office for sure ?
Manish
Hi Praja,
Yes NRI can open PPF account.No problem.
Hi Manish..I have open PPF account and putting 70,000rs yearly..
PPF Calculator is on same concept as annuity calculator but with additional information.
No NRI’s can’t open new PPF account. But if you have opened PPF account when you were resident Indian you can continued it.
Hemant
I can see that as a rule , a NRI cant open a PPF , but i remember I knew some one who did . or may be i am wrong .
Yogesh , are you NRI for long and then opened the account ?
If you open a PPF account (non-NRI status) and attain NRI status later…you can continue it.
But you cannot open PPF account with NRI status.
Read more here: http://www.moneycontrol.com/news/nri-experts/nris-cannot-openppf-account_217589.html
Thanks for the link .
Manish
Hi Manish,
very useful information regarding PPF account. my husband wanted to open an PPF account; but as he has only 10 years service left we didn’t open an a/c. Can we open the account now.
please reply.
kavita
Kavita
Sure , there is no restriction like that to open a PPF account . Just that you have to consider that the PPF will mature only after 15 yrs fully (partially unlocked after 5 yrs)
Where are planning to open ? Bank or Post office ?
Manish
Thks Manish, for such a wonderful site and valuable information, as i am a housewife i wouldn’t know such valuable infmn from anybody and nobody would like to explain it in detail thinking what we would really understand, as we are housewifes. Again Thank U Very Much.
i would like to open PPF A/c in a post office.
Is it that we have to hold the account till 15 years till the same matures. Pl can u tell me what is the maximum amt u can put in a month in ppf. ….. kavita
Kavita
Regarding “Nobody would like to explain it in detail thinking what we would really understand, as we are housewifes” .
This is worrying and sad too .. From decades and centruries , Men are taking up the primary task of managing money and leaving women to just do household chores , that totally crap mentality . If women have power to mange house , she can manage money also and they are good at it . And if no one teaches , there is no issues , you can take charge and find out yourself over net and magazines and I am sure you will do very well .
The fact the you are ready to learn and have taken action already to understand financial stuff in itself is worth appreciation and great. most of the women do not know basics of investments and how things are managed and this becomes a curse at the time of premature death of men or divorce for a lot of women , when they have to suddenly take charge of everything on them. Financial education or for that matter any thing is not gender specific .
So go forward and read all the stuff on this blog and also share it with other women , I am coming up with a seperate article on coming days on “Personal Finance for Women” , “How housewives should manage their money” and “Why Women need to know Money Matters” in future , so watch out for it .
Ask questions when ever you dont understand anything however small or idiotic it may sound . there is nothing like silly or small questions .
Regarding your questions on PPF .
1. “Is it that we have to hold the account till 15 years till the same matures”
PPF is a long term product and one can save some part of their investments into PPF . The policy matures after 15 yrs fully , but after 5 yrs you can start partial withdrawals subject to some restrictions and rules (find them) .
2. “n u tell me what is the maximum amt u can put in a month in ppf”
Min : 500 , max : 70,000
You can also open a account on your Child who is minor and contribute towards that , but it will come in this limit only . Also the amount upto 70k will come under section 80C .
Ask if any doubts are there .
Manish
One more thing. Only 12 deposits can be made in a financial year.
If you intend to deposit 70,000 per year then 70,000 divide by 12 is 5833/- (monthly premium).
Open your PPF account with agent and negotiate a deal to get 0.5% on his commission. if you deposit 70,000 then agent gets Rs 350 and u get Rs. 350.
In your case (husband with 10 years of service), I would not recommend PPF because of following reasons (we can discuss more on this here as we here your near term goals and financial health)
1. PPF is locked for 15 years.
2. Govt can revise interest rate every year. By looking at the history, I think interest rate may come down to 7.5 and 7% in 10 years term.
3. As per new direct tax code, maturity amount will be taxable
Srinivas
What are your suggestions for them if PPF is not suggested ? What is the return they should target ?
Manish
Nice Article Manish , Hopefully Now I’ll overcome my laziness and go and open a PPF account .
Btw ICICI bank is supposed to Offer PPF
http://www.icicibank.com/pfsuser/aboutus/investorelations/pressrelease/icicibank_pressrealease/OnlinePPFSeniorCitizensScheme3.pdf
How ever a search on Google brings me this link also
http://www.consumercomplaints.in/complaints/icici-ppf-ac-c55003.html (ICICI PPF A/c Complaints – ICICI PPF A/c Nightmare)
Any one here have a Firsthand exp with ICICI PPF account??
-debashish
Debashish
Its pretty old date
. I am not sure if ICICI is currently offereing PPF or not ? Did you check with them ? even if they do , it seems like a bad service from their side .
Manish
I was planning to open one this week, and bulls eye again. Here’s your post. There is some coordination between us. Last few days back I wanted to open Term Insurance and I received your post on Religare. And this week I was planning for PPF and I got this one. Thanks again.
Brij
Nice to know that
. So did you open PPF account ? When ?
Manish
Today I went to SBI Banaswadi branch, Bangalore to open a PPF account. They said opening a Bank account with that SBI Branch is mandatory, otherwise I can’t open a PPF account with them. I wonder if I open a PPF account through Post Office then what type of Post Office account is required. I found its wiered, Manish do we really need to Open a bank account with SBI before opening PPF account with SBI ? Also my Native is Jamshedpur, so if I open a PPF account in Jamshedpur then can I deposit the amount in my PPF from any branch or I need to go to that branch only ?
Hi Brij Mohan,
I had opened PPF account in SBI two years back and there is no need for a saving account for opening PPF account.Both are different things.
Best thing would be to open a sbi savings account along with PPF so you can do online transfer easily . In case you dont wish to do so you can open only PPF but you have to go to that particular branch to deposit into PPF.
If you open PPF in Jamshedpur, you have to go to that branch in Jamshedpur to deposit money into PPF.
I hope this answers your question.
Yes I understand, its convinient to open both the account together, but in my case its not optional for me, they are saying its mandatory. And not accepting my PPF request without the AC Opening in the SBI.
Anyway I think if I will open an account with SBI and link it with my PPF, then even if I am at any place but I can manage it online.
Brij
Ask them what if you open a SBI account with them and later if you close it , will they close your PPF account too
.
Manish
It is just their business tactic. So that they get one saving account created and after it is done, you will most probably transact. more benefit for them.
It is not mandatory to open Savings account with PPF. Talk to other SBI branch.
Brij
They are lying . There is no such rule .Ask them that you want to talk to manager and if manager dont agree, ask them to show you the rules where its mentioned by govt .
You cant deposit the PPF amount outside your branch , the best thing would be to link it electronically and pay online .
Manish
manish,
1). what is advisable , one shud open the ppf account on its native place or the place where he is working ? coz as i come to know dat transfer of ppf from one branch to other( bank/post office)
is not much easy, means lot of exercise u have to do…?
( what u say )
2). if suppose he opened the ppf on his native place sbi branch, then can he get his passbook updated in any branch of SBI in india, and can he deposit the money in ppf…from any branch..?..
same can we do in postoffice also..?
is it possible.?
regards,
varun
Varun
1) The best thing would be to open it at the place of your working , as the underlying thing is that it should be close to you and probably you are going to work at same place , however if you set up online transfer of funds ,then there is no issue like this . you can then open it anywhere .
2) No you cant . Best to pay online .
Manish
1. Place of working would be better. In my case, I have a PPF account in my native place, as I am not planning to invest more, I will tell my dad to deposit Rs.500 and it does not need my signature, he will go and deposit.
2. In case of post office, you cannot update your passbook in any branch. you have to visit the PO where you opened your account.
varun,
transfer of your ppf a/c from one place to another is easy and not hectic, I’ve done this. All you need to do is to go to the branch where you want to transfer and deposit an application with your passbook. that’s all. its a 10 minute work. After 10-15 days you can go and check status of transfer and then collect the updated passbook. I transferred my a/c from Kolkata to my native city (Bhiwani, Haryana) and it took around 20 days.
.-= Jagbir´s last blog ..QuickTip use exim for normal mail but stop for secure smtp server =-.
Jagbir
Thanks for the information . I have added this info in the article . But I am not sure if what you said is true for
Any Bank to Any Bank
Branch of X bank -> another branch of X bank
Post office to -> any bank and vice versa ?
Manish
Manish,
I tried from one branch of post office to other branch of post office. that was easy. The officer in post office said that its quite possible and hassle free also to transfer your a/c from post office to bank or vice versa. though, no real experience for that yet.
one thing, I searched the ICICI bank site but didnt find any link for PPF. Is the bank still offering it?
.-= Jagbir´s last blog ..QuickTip use exim for normal mail but stop for secure smtp server =-.
Jagbir
Great . So final conclusion is that transferring PPF account from one place to another is possible and hassle free in general .
Regarding PPF from ICICI , i am getting a feel that its discontinued now . not sure but .
Manish
I have read PPF account transfer from kolkota to bangalore took almost 6 months. but this must be a rare case. it must be done within one month.
Dear Manish,
wonderful post….Yes u can transfer money online to ur SBI PPF account from any other branch…I am personallly transferring money from my ICICI bank account to SBI PPF account online and also you can verify ur PPF account balance online….for that just get ur PPF account attached to ur saving account and have internet banking active for ue savings account.
But I have one doubt….
Whether online Statement of My PPF account can be attached as a proof with my ITR?
Plz let me know,
Regards,
VSA
Vishal
Nice to know that . Generally one has to put xerox of the PPF passbook as tax proof . not sure of the online reciept .
Rishabh , any idea ?
Manish
Dear VSA,
Are you sure you are able to transfer funds online from your ICICI bank savings account to your SBI PPF account.
Necause, i have a ICICI savings bank a/c and a ICICI PPF a/c and they still dont allow online transfer of funds.
Please reply how you have managed to do accomplish this.
Saurav
Saurav
Did you check with ICICI that you cant do that ? I think they are not giving proper info .
Manish
Manish,
Earlier, u asked who pay for the 1 % commision to PPF agents? Govt. of india pay forthe commision and below is the link to elaborate… http://www.alpbachat.org/agents.htm
Regards,
VSA
Vishal
Wow , great to know that there are commisions to agents
for govt . Do you think there is any scope of misselling , now I get why ICICI has PPF account , it might be getting that commission of 1% 
Manish
Hi all,
There is no complusion of opening a saving account in bank for PPF account.If any one
compel ask him to give in written or go directly to bank manager.
Even u can complaint on RBI site..i guess for such compelsion..Manish Correct me if i am wrong?
Aside to Manish/Hemanth,
Yes I am NRI and having NRI account in SBI and my PPF is linked with NRI account.
No body told that u can’t open a PPF account.I paid my 70K through NRI saving account only.
PPF acoount is opened by me on 8th dec,2009 and i been outside of india from last 4 years.
Where is it mention NRI can’t open PPF account ?
Yogesh please check below links:
http://www.moneycontrol.com/news/nri-experts/nris-cannot-openppf-account_217589.html
http://profit.ndtv.com/2008/12/26171955/Investment-opportunities-for-N.html
http://www.financialexpress.com/news/ppf-account-opened-when-one-was-a-resident-can-be-operated-after-becoming-an-nri/383142/
Yogesh
Yes ,there is no compulsion , i am sure Banks are doing it for there personal benefit .
Regarding NRI opening PPF , i am not sure how its working for you . As per the rules , the NRI cant open it , if you have done it ,there there are two cases , either some rule change from RBI which we are not aware or some how there is a way to do it and there is bug in the system
Manish
if any SBI branch mandates you to open Savings account then escalate this issue to the DGM and AGM Zonal officer via mail.
I have done it for some of my SBI problems, I used to send a mail to bank manager CCing these people, my queries are solved within a day.
I have shared same information with my friends, CCing these people are really useful and fast.
If still no response, they you can complain in RBI Ombudsman
Manish,
I dont think there is any scope of misselling as not a single company or individual will invest 70K per annum to get 700 Rs. commision and that to with lock in period of at least 5 years. Also, if at all organisations wants to get benefit of extra corpus lying in there balance sheet then they ahave to get individuals name registered for the each 70K invested which i think is cumbersome and also not at all feasible…
Plz correct if i am wrong in my perceptions….
regards,
VSA
Regards,
VSA
Vishal
The commission is paid to agents and not the investor . I think you are getting it wrong .
Manish
Hi Manish,
It seems you are running short of ideas.I find this article totaly useless. Your previous article on why to have ppf account now,even if you dont need was good ,but this one i completely miss the point of it.
It simply gives a message that can be put in one line and most already know of it.
“To open a PPF account visit an SBI branch with an ID and address proof.”
The article even goes on to mention that only one document is needed,I doubt if you can open an PPF acct with just a pan card.Its just an ID proof and NOT address proof.
Please give some meaningful articles which has some analysis and is really useful.
Thanks,
Manish
You are missing the big picture here. Believe me , you are seeing it from a very different angle . You are just thinking about “What information I am getting out of these 100 lines of text and 1 image (which is nothing but spam again as the information is already there in the text) . I accept that there is nothing much into opening the PPF account at SBI or even Post Office and ” you find this article totally useless” , even I do . But Why do we feel like that , Did you find the reason ? How do you came to know about in your case ?
Chances are that you either went yourself personally to open an account or you came to know about it by reading it or may be some one told you the procedure . This post is not for us , who already know the procedure or have ppf accounts already done .
There are millions , really millions of people in India whom if you ask “how a PPF account is opened”, have no clue.Ask them to “guess” and 99% wont be able to tell you . It sounds funny , but thats true . “How to open a PPF account” , try to type this in google search bar and see what it auto completes to ) , it completes to same thing like “how to open a PPF account ” , ” How to open a PPF account in post office” , “How to open a PPF account at SBI online” and similar things . this is what most of the people are searching (atleast people who have access to internet)
They still think that its a complicated procedure and takes a lot of time to do that . This post is for those who have no clue at all of how simple the procedure is , this post is for House wives like kavita kamat (comment 80) , who consider these small and obvious information as “very good and easy information” who have got the feeling that no one tells them these stuff because they might not “understand” it , Even they know there will be “some form to be filled in” and “some document” to submit . But with that much information how many people are going and taking the action of opening it .
This post is for those also who have the feeling that the procedure is simple , but are waiting for some one to confirm and finally tell them how simple it is. The post is there to give them a final kick to go and start the procedure because its easy .
Yes , you are correct that the whole post can be summerized in a small 1 line sentence , but then the post is not just for information , its for interaction also. We at Jagoinvestor as a group do not just want to “Dump Information” in a post . We want to bring together readers and then do some discussions , exchange views .
A post not just gives information , but also creates different ideas and creates more knowledge out of confusion .
Only after this Post , following things has happened .
- One guy came to know that He is not suppose to open a PPF account as he is NRI and now he is planning to cancel it else he will miss out on interest later .
- We came to know that one can open PPF account in any bank and transfer the amount online from any account in another bank .
- We also came to know what needs to go for tax proof (many people knew it , but many didnt)
- We also came to know that the procedure to transfer PPF account from one place to another place is also not cumbersome and time consuming .
- We came to know that banks have bias ness for FD’s and they lie to customers that you have to open a FD with SBI if you want to open a PPF . One reader is waiting from 2 yrs because of this matter and now he has decided to talk to bank about this and ask some bold questions .
- We came to know that agents get commisions on some products sold like KVP , PPF etc .
Manish, not to pull leg , but there are 3 readers who feel the article is “Excellent” and 4 readers who think this is a “good” post and 2 readers feel its a “Wonderful” post . Rest all readers also liked the post , may be they didnt use those good words but . The reason they liked it was they didnt knew the procedure and finally it they are sure about it with lot of comments , discussions and Images .
Most of the things we need to fill a form with an ID and address proof , which you mentioned needs to be done here too ., We all know about it , the post is there to confirm about this fact that even with opening PPF account, the procedure is as simple and its not complicated .
I want to make you understand that each one of us has a level of understanding and knowledge about something topic. People like Me , you , Pattu etc are way ahead of many readers on this blog and some topics might be very idiotic and useless for us, but the same topic might be “extremelly useful and informative” for thousands of readers , who know nothing , they are starting from scratch and just telling them “To open a PPF account visit an SBI branch with an ID and address proof.” will never work .
The fact that your comment is 106th comment on this article (including mine) and 54th (excluding mine) within 48hrs of article coming in gives a good idea of how useful the article was for other readers .
As you said, I am really short of Ideas these days
and need suggestions on What new topics I can work on to make it a better place to hang on for every kind of reader .
I would love to hear your views on my comment and would like to have discussion on different topics .
Dont take any thing personally please . It’s never .
Manish
@ other manish
Please suggest 10 new topics that jago Manish should cover.
Hemant
I have listed down close to 80-100 different topics I have to write on
. Just that I am not able to follow up that and actuallly do it . When ever some thing comes to my mind i put a note of it . So in reality i am not short of ideas 
. Just that I am lazy 
@other manish , anyways you can suggest the topics , it would be a nice addition .
@Other readers , I will put some form for getting the suggestion
Manish
@ the other Manish,
When “Jago Manish” asked me for this info, I also taught maybe this wont be a full post. But look at the response! He is right lots (in Indian that mean LOTS!) of people need info. I learnt many things from them and some did find it useful.
But I guess I am glad you don’t need this article. But then again you need address and ID proof. So in addition to Pan Card you need ration card etc.. Passport could serve as both if one has it.
Hi Other manish,
Even I was aware of how to open PPF account but in discussion mail chain
came to know many new things.
More over I came to know that for which investment NRI are not applicable.I
was never having any such clue and I guess people working in bank even doesn;t have
this information as they open my PPF account.
In this article link provided for PPF calculation is also good one.
Never mind.Such criticism can further raise this blog standard.
Regards
Yogesh
Yogesh
Lets not give it a name of “criticism”. It might look harsh at first glance , but he puts his point and what he thinks about it . We had a great discussion on this topic because of thim only . I think Manish brings up a very important point of discussion here which is difference in understanding and perceiving information in personal finance , there is huge gap between “knowledgable” investors and “starters” across every where, which needs to be filled and every person needs to understand that there is gap even if its too small .
Manish
Manish,
Can NRI open a new PPF a/c ?
Regards, Mahesh
Read earlier comments
Hi Manish & Mahesh,
Mahesh as per our current knowledge NRI can’t open the PPF account.
http://www.moneycontrol.com/news/nri-experts/nris-cannot-openppf-account_217589.html
I have send a mail to ICICI & SBI bank to get latest information whether
NRI can open or can’t open the account.
Once received response will update all.
Regards
Yogesh
Hi all,
Some useful FAQ for beginner on PPF in below link
http://www.themoneyquest.com/2010/01/ppf-scheme-rules-faqs-queries.html
Regards
Yogesh
Hi all
Some faq for beginner on ppf account.
http://www.themoneyquest.com/2010/01/ppf-scheme-rules-faqs-queries.html
Regards
Yogesh
Hi Manish,
In below answer whats the difference between Minor&Major child?? ..I didn’t understand.
Its means for minor child can’t get tax excemption but can get tax excemption for major child.
Q-10: Is it possible to avail Rs 1 lakh deduction under section 80C though we’re allowed to deposit maximum of Rs 70,000 under PPF rules?
Ans: Actually under the IT Act, there is no limit and even under PPF rules Rs 70,000 limit is meant for self a/c and minor a/c. It doesn’t include the contribution to the a/c of spouse and major children.
In other words, as per PPF rules, the total deposit in your own account and in the account of your minor child can’t exceed Rs 70,000 in a FY. But PPF rules doesn’t bar you from making additional deposit beyond the limit of Rs 70,000 in the account of your spouse or your major children and accordingly you can claim Rs 1 lakh tax deduction u/s 80C of IT Act.
@ yogesh
You can’t take 80 C benefit of more than Rs 70000. HNIs use PPF to get 8% tax free return; they invest Rs 70000 each in their family member’s name.
One PPF account can have maximum of 70,000 deposit f0r a financial year. If you have 2 account in your name and in your child (minor name) you can deposit 1,40,000/- but you cannot claim tax deduction for not more than 70,000/-.
Srinivas,
TWO PPF acc (yours+minors) “you can deposit 1,40,000/”
I disagree. Can you produce written proof of the same?
Look at the links in the article in section “Other points to Consider”
I have other links from the web which state total limit if Rs. 70, 000/-
PPF rules in PO and SBI passbooks dont contain this information.
I am also not sure, But this is how I understood the below statement.
“(3) An individual can open a Public Provident Fund Account in his own name. He can also open an additional account on behalf of each minor of whom he is the guardian. He can subscribe any amount in multiples of Rs. 5 of not less than Rs. 100 and not more than Rs. 60,000 in a year in each of his account. A year for the purpose of the scheme means a financial year (April 1 to March 31)”. (emphasis supplied)
The word “in a year in each of his account” made me to think like that.
No clarity again on PPF rules in Indian postal website.
Read the same statement (updated to 70k) from this website. http://www.statebankoftravancore.com/ppf.htm.
This was my understanding till now…let me find out more
Hi Pattu,
I found the below statements from these website(s).
http://www.statebankoftravancore.com/ppf.htm
“(24) The ceiling on deposits as provided for by Central Government from time to time, which is Rs.70,000/- in a financial year at present, is both for individual self account and account(s) opened on behalf of minor(s) of whom he is the guardian, taken together.”
http://www.bajajcapital.com/gss/ppf.html
The deposit in a minor account is clubbed with the deposit of the account of the Guardian for the limit of Rs.70,000/-.
You understanding is correct, Thanks for pointing out.
If you read the link I mentioned earlier, it refers to your links as not being updated. The addtion to the rules has not be put in. In fact there are many cases in which people have put more then Rs. 70000 in both acc and there has been some issues.
want to share a link: http://www.livemint.com/2010/02/09212937/Good-old-PPF-would-still-work.html
its says:
“You can open a PPF account in your name and in the name of each of your children individually. However, you cannot exceed an overall investment limit of Rs70,000 between you and the kids. This means that you need to apportion money so that the total does not exceed Rs70,000.”
-
Jagbir
Jagbir , Pattu , Sriniwas
Says Harsh Roongta, CEO, ApnaPaisa.com: “It depends on the bank branch and is not a practice across banks. Some banks that do refuse say that opening an account in the name of the minor is unnecessary because an individual can only invest up to Rs70,000, including that of his minor’s.”
So shall we conclude that “A person can not invest more than 70,000 per annum in total including his children contribution” .
Manish
Jagbir, Srinivas and Manish, nice sources. thank you. Just last month I opened PPF in my mother name with me as nominee so that I can invest full Rs. 70,000 for my new-born.
Not many banks can offer clarity on this issue. Its time they printed this on the passbooks. Good to see SBT has some info on this.
Hi Srinivas,
If interest rate goes down in PPF in future then that time can put 500rs but as per
my views in current situtation can still deposit the money.
How u did Zonal & Branch Manager email id ?
Is there any site where they have mentioned this information for all SBI Branches?
Regards
Yogesh
You can get circle helpline email id from http://www.statebankofindia.com/user.htm ->Complaints and Suggestions ->Circle helpline. (General manager (1st CC))
dgm.customer@sbi.co.in 2nd CC
For Bangalore, AGM mail id is agmr5.zoban@sbi.co.in (3rd CC).
I will findout from other locations.
Srinivas
This is a great contribution , please let us know how you found out these numbers , “How” is more important than “what” here ..
Manish
First two email Ids I got from SBI website itself which are meant to be used in case of issues/complaints/grievances. Last one I got it from my friend. I will find out how he got it.
But first two are enough I feel.
Hi Srinivas,
If interest rate goes down in PPF in future then that time can put 500rs but as per
my views in current situtation can still deposit the money.
How u find Zonal & Branch Manager email id ?
Is there any site where they have mentioned this information for all SBI Branches?
Regards
Yogesh
Hi all,
As Imentioned earlier,I had send a mail to to ICICI & SBI bank in order to
check latest rules on PPF account for NRI and response is same
as mentioned/replied by Hemant,Srinivas & Manish.
Below is the response.
========================================
Dear Customer,
We thank you for writing to us.
Currently NRI Customers cannot open PPF account.
For any further queries you can contact us through phone. Our toll free numbers are:
USA: 1 866 ICICI 4 U
UK: 0 8081 314151
Singapore: 800 ICICI 4 U
Canada:1866 ICICI 4 U
India: 1800 22 4848
—–Original Message—–
Subject: Query on PPF account
Hi ICICI Bank,
Need to know whether NRI can open the PPF account or not?
what is the latest rules & regulations ??
Plz respond back.Thanks
Regards
Yogesh
======================================================
On a similar note, I get a reply from ICICI bank on how I can transfer my PPF a/c which is with Post Office to ICICI bank.
here’s the text:
Dear Mr. Singh,
You can transfer your PPF account from one authorized bank or Post office to another. In such a case, the PPF account will be considered as a continuing account. To enable to transfer your existing PPF accounts to ICICI Bank, the following process has to be followed.
a) You need to approach the bank or the Post office where your current PPF account is held and makes an application for transfer of PPF account to ICICI Bank. The application form will be as per the format specified by them.
b) Once the application is processed, the existing bank/post office will hand over original documents such as a certified copy of the account, the account opening application, nomination form, specimen signature etc to the you along with a cheque/DD for the outstanding balance in the PPF account. The cheque will indicate that it relates to PPF account number.
c) Once the you receives all the necessary documents, the same may be submitted at the authorized branch of ICICI Bank along with an account opening form.
d) If all the documents are found to be in order, the account will be opened as per the normal account opening process.
Following are the list of Authorized ICICI BANK Branches where PPF facility is available.
Bangalore – M G Road (2)
Panchkula (43)
Dehradun (164)
Vadodara (3)
Bhopal (55)
Ranchi (175)
Mumbai – Nariman Point (4)
Pondicherry – Mission Street
Madurai Main (6003)
Kolkata – R N Mukherjee (Retail) (6)
Mohali (58)
Patna (6259)
New Delhi – Connaught Place (7)
Nagpur – Civil Lines (59)
Thiruvananthapuram (Trivandrum) (6262)
Hyderabad – Khairatabad (8)
Vishakapatnam (60)
Kozhikode (Caliicut) (6265)
Chennai – Nungambakkam (9)
Bhubaneswar (61)
Kolkata – Gariahat (6278)
Ernakulam (Cocihin) (10)
Palghar (62)
Lucknow (6281)
Jaipur (12)
Boiisar (63)
Noida – Sector 27 (6284)
Chandigarh – Sector 9C (13)
Ahmedabad – Drive-In-Cinema (64)
Delhi – Mayur Vihar (6297)
Panaji (15)
Amritsar (66)
Cuttack (6342)
Ludhiana – Feroze Gandhi Market (17)
Manipal (72)
Guwahati (6343)
Pune – Shivajinagar (39)
Jamshedpur (89)
Shimla (6353)
Hyderabad – Madhapur (40)
Raiipur (161)
Darjeeling (6354)
Sincerely,
Riazuddin Mohammad – Emails DP – Hyd
Account Manager
ICICI Bank limited
can we change the address, mentioned in our ppf form ….afterwards?
means when we transfering ppf account from one branch to another branch, then can the address be changed?…
and can we see the status of our account in online banking ( in sbi )?…
…
as i came to know from sbi branch,that u can see the status of ppf like ur saving bank account only if ur address given in both accounts are same otherwise not?….
plz guide,,,,
regards,
varun
Varun
change the adress before changing the address and when its done , then transfer , not sure about the online thing .
Manish
U r doing a yeoman service & responsible work, by making people financial literate.Please keep up the good work.
Thanks Rajiv
Hi Manish Chauhan,
I completely agree with what the other Manish has to say.
You have already setup a standard here, by writing many excellent articles and that has clearly raised the bar of the kind of material you would offer.
Also, pan card is an ID proof and not address proof. It will NOT suffice for opening a PPF account. You need both, an ID proof and an address proof, and most SBI branches won’t allow you to open a PPF account unless you hold an account with SBI (with any SBI branch), so that they can verify your signature. The rules say that you don’t have to own an account with them, but in reality it is different.
Do not think that I (and the other Manish) are discouraging you. We are encouraging you to give us better material, like you always do.
That said, I’ve been lurking around for many days here, but have never posted a message. I must say that your site is greatly informative and educative in general and I appreciate that very fact.
Keep writing.
Das
Nice to receive a comment
. I would agree that I have raised the standard with article quality , but some times we need to have very general articles too like these which might be very basic for some class of people , but very informative for others . Even for people who know “how to open PPF account” got other information because of this same post (see comments) .
What do you feel ? Thanks for your appreciation
Manish
If I do a ppf account in the name of my wife , will be able to tax benifit for myself
Biswajit
You cant do PPF investment in your Wife name . you can only open account for yourself and your minor child . Your wife will have to open a seperate account , even if you pay the money to her and she deposits that money in her PPF account , you cant get the benefit .
Manish
Manish,
I think one can claim tax benefit for ppf contribution to spouse or major child’s account.
See:
http://www.dnaindia.com/money/column_don-t-ignore-the-old-warhorse-ppf_1247883
Yes. From the link pattu has shared. It looks we can claim tax benefit towards the contribution made in spouse/major child name.
I know in case of NSC, My father had taken NSC in my mother name, but he could submit that as a tax proof for the financial year and it is considered by the finance team. My father was in state govt police service.
ok . So I got that point , but the article also mentions
“It is also possible to invest Rs 1 lakh in PPF for those who wish to do so. Remember, Sec 80C doesn’t impose any sectoral caps on investments. It is PPF rules that limit the investment to a maximum of Rs 70,000 in the PPF accounts of self and minor child. However, tax deduction is also available under PPF for investments in the name of spouse and children. Consequently, one can invest Rs 70,000 in one’s own account and the balance Rs 30,000 in say the spouse’s or major child’s account and thereby avail of the full deduction of Rs 1 lakh through PPF. ” .
So does that mean we can take benefit of full 1 lac ? I am myself unclear on that , can some one find out please ?
Manish
“we can take benefit of full 1 lac ” Yes this is my understanding. I have seen in more than one article that you can contribute to your wifes ppf. I am going to do this from April 2010. Will let you know if I pull it off.
I will definitely check with finance team in my company and let you all guys know the result.
dear manish
can we change the address, mentioned in our ppf form
hi manish,
can we change the address, mentioned in our ppf form ….afterwards?
means when we transfering ppf account from one branch to another branch, then can the address be changed?…
and can we see the status of our account in online banking ( in sbi )?…
…
as i came to know from sbi branch,that u can see the status of ppf like ur saving bank account only if ur address given in both accounts are same otherwise not?….
plz guide,,,,
regards,
varun
Varun
The way you are doing is wrong , change of address can not be done while transferring the account . the way you can do is , change the adress first , once it gets changed in your SBI bank , then do the transfer . See Below
Procedure for changing address SBI Saving Account :
—————————————————–
Go to your branch and ask for Change Address form very simple form then give new Address Proof and submit it. Thats it. On passbook you can get it reflected after few days. I had changed to Harayana address she asked for Address Proof then i was having document issued from my company on letter head both Permanent and Temp written on that. It was easy process.
Credit goes to : http://nareshyadav.blogspot.com/2010/01/procedure-for-opening-sbi-account-ppf.html
Manish
Hi manish
Yes, and in case u miss to deposite min a/m that is 500/- in a year then dont worry the a/c does not closes, but u will hv to pay fine of Rs. 50/- to regularize it.
its realy a nice forum and a nice post.i m a regular reader of ur post n like it very much.
I hv a PPF a/c in SBI since 2004. i also want to share sm information abt it.
1) Min a/m deposit is 500/- and max a/m can b deposited is 70,000/- per year that is april 1st to march 31st.
2) Max time u can deposite in a year is 12 times, which can not be exceeded.
3) U can also take loan. the first loan u can apply is only after 3 yrs of opening of the ppf a/c.in that case u r eligible for loan of 25% of ur 1st year balance in the a/c which is repayble in convenient monthly installments not exceeding 36 mnths. you can apply for the 2nd loan at the end of 5th year bt no 2nd loan can b taken so long as the 1st loan is not fully repaid and the a/m of 2nd loan will be 25 % of the balance at credit at the end of2nd year immediately precceding the year in which the loan is applied for.
4) After the completion of 6th yr u can take out 50% of the money frm ur a/c.
5) After 15 yrs u can take out all ur money.(optional)
6) In case of death of the a/c holder the money can be given to nominee.
7) U can transfer the a/c frm one branch to other branch in other state also.
all u hv to do is give application addressing the branch manager of that branch in the state mentioning the branch name , state and code(MICR) no. of the branch where u intend to transfer and submitt the pass book. the problem of this procedure is it takes around 10-30 days (because of postal service and sm lazy work by bank staff, it is always better to hv phone no of the bank emplyee so that u can remind them if it get delayed) and 2nd problem is u hv to check ur self whether it is transfrred to the required bank or not because its my personal experience that the bank do not inform whethr it is transferred or not.
9) If u hv a saving a/c & net banking in that perticular bank then the PPF a/c will automatically be attached to the net banking service, u dont need to apply net banking for the ppf a/c separately.
Vivek
thanks for your contributions . Most of them are correct, some of them have more detailed rules like “you can withdraw 50% of amount after 5 yrs” , see more
Manish
A really nice post Ashish and number of comments saying it all..
Suhasini
thanks for the comment , i am sure you are learning too much from the comments itself
. looking from your contribution . We always have something to learn from everyone 
Manish
HI Manish,
I want to invest 10,000 every year in PPF . Can i do this as a SIP through online. How is the interest calculated.
you can invest online , but there is no SIP (automatic) facility
Manish
HI Manish,
sorry for the back-to-back posts. but this time i want to know how to transfer my PPF account from Post office to a SBI branch.
Look at the article , we have discussed how to transfer the account from one place to another , its very easy
Manish
Overall a nice and fruitful discussion and all of us gained many things. But having a small query and a suggestion for the forum.
1. Query is suppose someone has opened a PPF account in a Bank through a Agent and if he NOW links this account Online will the Agent get his usual 1% commission as discussed elsewhere in the blog.
2. My suggestion is One Must Open PPF Account only through an Agent, as he takes all the Hassles of Filling Forms/Depositing Cheques/Getting the Passbooks Completed/and even gives you an Incentive for ALL THE WORK HE DOES FOR YOU.
3. Opening directly PPF Account gives all the benefits to the BANK/POST OFFICE and YOU SUFFER because of their callous Sarkari Attitude.
4. And Good News is Now Your Agent is not permanent as was earlier. As you can always chuck him Out of business, by simply giving a letter to other agent if you desire to change for any reason like – poor services/non-compliance/delayed services/lazy person/indefinite delays/repeated excuses/refusals and your Transfer/relocation to other place AND LAST BUT NOT THE LEAST VAISE HI, kyonki ab voh theek se KAM NAHI KARE. No body is going to ask ANYTHING From You. You just need to identify a NEW AGENT and give him the letter and BE ASSURED till he is working Nicely.
Hi Raju,
Answer to your query.
If you deposit via online then agent will not get any commission and it is applicable in post office also if you directly deposit in absence of agent.
I mean, when you visit post office to deposit the money, you should go with agent then only he will get commission and he can share 50% with you.
If you go without agent, then no body will receive commission and post office staff itself likely to misuse this opportunity and take agent’s commission.
Srinivas
Ok , I thought the agent will get the commission only while the first payment . So agent will get it everytime . Nice to know this .
Regarding misuse, I think there will be some way agents commission cant be taken away like some signature, direct payment to his account or something like that .
Manish
Raju
Ohh . i never knew that we can change the agent so easily . I hope same is true for endowment plans
Manish
I heard that ICICI has facility of Online PPF account?
Any details on whether they are available even now & also where to find more info & apply for this account with them?
PA
Not sure if they exist even now .. i saw there website .. but cant find the info . can you check with customer care ?
manish
Manish,
How is the year’s 70K limit checked ? Is it considered for a Financial Year: Apr-Mar or a Calendar Year: Jan-Dec?
I’ve opened an account in Febraury, So if I deposit 70K in feb, then will I be able to deposit further later in the year (say Nov) or will be allowed to do so in the next year only?
Chaitanya
Its from Apr-Mar , its very simple logic as its a tax saving instrument and tax is calculated from Apr-Mar
So you can invest max 70k or 12 times in a financial year .
manish
Yea,I have contacted them.
Also ,this is the first time that I will be paying Income tax but im not able to find the informations like the last date to pay income tax,whether i must add proofs of income while submitting tax, what does income tax return filing mean etc.,Would you be able to throw some light on these?
One more thing is how to file tax for the income from Adsense(Im earning full time from adsense)
Really nice and easily detailed;
At http://www.indiapost.gov.in/POSBActs/PPFRules1968.pdf it is said:
The subscriptions, which shall be in multiples of Rs. 5, may, for any year, be paid into the account in one lump sum or in instalments not exceeding twelve in a year.
My question is can I submit twice in one month? The banker said yes not sure if he gave the correct answer.
Ashish
You can invest any number of times in a month , just that total in a year has to be 12 . Thats what we can deduce from rules .
No where they have mentioned that it cant me more than once in a month . I think they have put 12 in year considering that anyone will probably invest 1 time per month
manish
Could you pls inform how to change PPF account from a specific BANK (say Bank of India) of one place to another Bank (say SBI) in an another city?
Normally how long this process (changeover) takes?
Thanks in advance.
Kausik
Its mentioned in the article itself .
* Go to the branch where you want to transfer your PPF account and deposit an application with your PPF passbook
* takes 10-15 minutes
Manish
@Manish: one more query in addition to my previous query..
I learnt that as per RBI regulations interest on savings account (~3.5%) will be calculated on a daily basis and paid on a half yearly basis. Can’t understand whats the big change?
Asish
Yes . thats true , the interest might be calculated on per day basis , but dont get attracted to this so soon untill you do the maths yourself , the quantum of benefit is not that big at all to party
Considering 3.5% return , if we get return on montly basis (current rule between 11th and last day) the return would actually be just 3.55%
>>> 100* ((1+(.035/12.0))**12 -1)
3.5566952945970565
If we compound it daily , the return would increase with a very small amount . just .01%
>>> 100* ((1+(.035/365.0))**365 -1)
3.561797105718445
So , this is nothing to cheer about .
Manish
I want to add clarification on two points:
1) Why Banks are not interested in opening/encouraging PPF Accounts. Inititally only SBI was authorised to maintain PPF accounts. Later the authority was extended to all other nationalised banks also. I do not know whether private sector banks are given the authority. The main discouragement for the banks is that they are given (i recall from my memory that the Government is reimbursing o.05% for maintaining the PPF accounts on behalf of Government and also the fact that it is additional work load for them. So no other nationalised bank evinced any interest in soliciting or marketing PPF accounts. You could have very well observed that there will be no separate counter for PPF accounts but the same will be tagged with the Government work counter in SBI. If staff absence is there, the first casualty would be truncation of PPF work. And the poor PPF customer would be asked to come afterwards.
2) Regarding interest on Savings Bank on daily product basis:
Present procedure: Interest is calculated on the MINIMUM monthly balance between 10th and last working day of the month on monthly products basis.
For example, you are having balances of 8000/- on 1st, 10000/- on 9th, 5000/- on 12th, 25000/- on 18th and 1000/- on 31st, the monthly balance would be taken as 1000/- only.
But if the same is taken on daily product basis from 1st of every month, the daily balances outstanding would be taken up and interest would be calculated on daily basis. Even in the above example, if the interest is calculated on daily basis, it would be as follows:
1-8: 8000 * 8 = 64000
9-11: 10000 * 3 = 30000
12-17: 5000 * 6 = 30000
18-30: 25000 * 13 = 325000
31: 1000 * 1 = 1000
Total = 449000 for 31 days
So in the earlier case (on minimum monthly balance at Rs.1000/ p.m. i.e. 31000 for 31 days it is now 449000 for 31 days.
So there would be a substantial benefit for the funds in Savings Account.
Dear Mr Manish,
I had a PPF account with SBI and also my son’s account with Post Office. For one thing, SBI in most of the places is handling vast amount of Government transactions and incidentally the same counter is handling the PPF work also. So, it takes a lot of time with SBI, whereas in the Post Office the normal Savings Bank counter is handling the PPF leading to quick service. I do not know about the other places.
Elaya
Do you mean its faster to open a PPF at post office ? Does it matter ?
Manish
You will not believe it. For the past two days I was trying to make remittance in SBI (I want to make it before 5th). But there is a long queue in the only Government Counter which handles the PPF work. Or else I have to make it in the last week of the month since at that time the Government counter in SBI does not have large volume of work. Comparatively it is easy in the Post Office.
Elaya
ok , so because of all the lazy PPF account holders who did not do their investments before you are suffering
Manish
I have opened PPF account in post-office bef 8 yrs. since last 5yrs i lost my passbook and i m not depositing money. I do not have account detail. Now i want to reactivate it. How can i retrive it ? How can i get duplicate passbook ?
Hello Mr. Manish
please guide me how to retrive/get duplicate passbook without any information i.e account detail available with me. (passbook lost).
Visit the post office where you opened your PPF account and give a written application for issuing duplicate passbook with fine of Rs.1, they will issue the duplicate.
To reactivate, you have to pay Rs.50 for every non-paid year alongwith arrear subscription of Rs. 500 for each year.
Hi Manish,
It was excellent reading about PPF. and since i am trying to convince my family about PPF investment they are all negative on it.
Can you let me know where i can download the legal document saying there is no tax on interest gained on PPF .
So that i can be on the lead to say i am RIGHT.
Ashish
You can ask your family to enquire it at Post office and SBI Bank , it should be enough
http://www.taxguru.in/income-tax/public-provident-fund-ppf-scheme-investment-limit-income-tax-benefit-features.html
Manish
I visited state bank of indore in my town to open an PPf a/c but the manager insisted me that ihave to open an savings a/c along with ppf. so iwant to know wether ppf a/c has to be opened along with savings a/c and is it compulsory to open savings a/c?
Sreenivasan
No , its not compulsory to open a saving account at all . the officers at bank generally want you to open “something else” along with PPF so that you give them some business personally , I would say demand an official explaination on why its needed . you can anyways open a saving account and then close it later . How will it help him ?
Manish
Hi Manish,
Personal finance is a subject of my interest and very glad to see you educating the investors which is very much required.
Regarding PPF account, I went to Pulgate branch of SBI in Pune to open my daughter’s account and was told, “We don’t open minor’s account”. When I verifed with one SBI employee he said that’s not true. What I know is, one requires PAN to open an account but it’s unbelievable that minor’s can’t open account at all. Could anyone please confirm?
Please continue the good work. Best wishes for you always.
Ketan Shah
Pune
Ketan
thats not true , one can open a PPF account on minor’s name , Ask the bank why they are not opening and what are the rules , meet the bank manager and threaten him to take the matter to higher authorities .
manish