How to Open PPF Account Through SBI Online – Full Step by Step Guide

If you are looking for a safe way to save money and also save tax, then PPF is a good choice. PPF full name is Public Provident Fund. It is a government saving scheme. Many people in India use PPF for their long term goals like child education or retirement.

SBI is the largest bank in India. Most people have their SBI account. The good thing is that you do not need to go to the bank branch to open PPF account anymore. You can open it online from your home. In this article, I will tell you the exact method to open PPF account through SBI online.

What is PPF Account and Why You Need It?

PPF account is a small saving scheme started by the government of India. You put money in this account every year. The government gives you interest on that money. At present, the interest rate on PPF is around 7.1 percent. This rate changes every three months but it is always more than a normal savings account.

The best thing about PPF is that the money you put is tax free under section 80C. Also the interest you earn is tax free. The final amount you get after 15 years is also tax free. 

PPF account has a lock in period of 15 years. That means you cannot take all the money before 15 years. But you can take loan against your PPF money after some years. You can also withdraw some money after 5 years for special needs like health or marriage.

For a common Indian middle class family, PPF is a very safe option. There is no risk because it is a government scheme. Even if the bank closes, your PPF money is safe with the government.

Read More: How to Generate QR Code for UPI Payment - Free Online Guide

Who Can Open PPF Account in SBI?

Before you learn how to open PPF account through SBI online, you should know if you are eligible. The rules are very simple.

• Any Indian citizen can open PPF account.
• You can open PPF account for a minor child. You will be the guardian.
• A person can have only one PPF account in their name.
• Joint account is not allowed in PPF. One person one account.
• HUF or Hindu Undivided Family cannot open PPF account. Only individual person can open.
• NRIs cannot open new PPF account. But if they had PPF account before leaving India, they can continue it.

If you are an Indian citizen with a single account in SBI, you are fully eligible to open PPF account online.

What You Need Before You Start the Online Process?

To open PPF account through SBI online, you need a few things ready. Keep them near you. This will save time.

1. Active SBI Internet Banking – You must have your SBI net banking user ID and password. Without this, you cannot open PPF account online. If you do not have net banking, go to your home branch and get it activated first.

2. Mobile Number Linked to SBI Account – Your mobile number must be registered with your SBI savings account. You will get OTP on this number during the process.

3. Aadhaar Card – Your Aadhaar must be linked to your SBI account. The bank will use your Aadhaar details for KYC.

4. PAN Card – PAN card is needed for PPF account because it is a tax saving investment. Your PAN must also be linked to your SBI account.

5. Minimum Deposit Amount – You need at least 500 rupees to open the PPF account. You can put more but minimum is 500. Maximum in one year is 1.5 lakh rupees.

Once you have all these things, you can start the process.

Step by Step Guide – How to Open PPF Account Through SBI Online

Now I will give you the full process. Follow each step exactly. Do not skip anything. I have written this in very simple words so that anyone can understand.

Step 1 – Login to SBI Internet Banking

Open your computer or mobile phone. Go to the SBI net banking website. The address is onlinesbi.com. Do not search on Google. Type it correctly in the address bar.

Enter your username and password. Then enter the captcha code. Click on login. If you have set up any extra security like OTP, enter that also.

Step 2 – Go to the PPF Section

After login, you will see many options. Look at the top menu. You will see an option called "e-Services". Click on that. Then a drop down menu will open. In that menu, find and click on "e-Tax". Under e-Tax, you will see "PPF Account". Click on that.

Some SBI versions have a different path. If you do not see e-Services, then go to "Accounts" or "Deposits" section. Look for "Public Provident Fund". The name is clearly written. Do not worry.

Step 3 – Start the New PPF Account Request

When you click on PPF account, a new page will open. On this page, you will see two options. One is "Open PPF Account" and second is "View PPF Account". Select "Open PPF Account".

Now the system will ask for your customer ID. Your customer ID is written on your SBI passbook or on the first page of your net banking. Enter that number carefully. Then click proceed.

Step 4 – Fill Your Personal Details

Now you will see a form. This is the SBI PPF account opening form but online version. Most of the details will already be filled because the bank knows you. But you must check everything.

Check your name. It should be exactly as per your PAN card. Check your date of birth. Check your father's name. Check your address.

If something is wrong or missing, you can edit it. But if your Aadhaar is linked, then most information will be correct. Do not change anything without reason.

You will also be asked to choose a nominee. A nominee is the person who will get the PPF money if something happens to you. You can choose your wife, husband, child, or any family member. Give their name and their relation to you. If you do not want to give a nominee right now, you can leave it for later. But it is better to fill now.

Step 5 – Verify Using OTP

After filling the form, the system will send a one time password or OTP to your registered mobile number. Enter that OTP in the box. Click verify.

Some people also get an OTP on their email. Check both places.

Step 6 – Make the First Deposit

Your PPF account will not open without money. You have to deposit at least 500 rupees. This money will come from your SBI savings account.

The page will show you an option to transfer money. Select the amount you want to deposit. You can put 500 rupees only or you can put more. Remember that the maximum for one financial year is 1.5 lakh rupees. The financial year starts from 1st April and ends on 31st March.

After selecting the amount, click on pay. You will be asked to confirm the transaction. Use your net banking password or OTP to confirm.

Step 7 – Submit the Request

After the money is taken from your account, you will see a success message. This means your PPF account opening request is submitted. The bank will check your details. This checking is called verification.

Sometimes the PPF account is opened immediately. Sometimes it takes 1 to 2 working days. You will get an SMS and email when your PPF account is fully active. You will also get a PPF account number. Write this number in a safe place.

How to Check SBI PPF Account Balance

Once your PPF account is open, you will want to check your balance. You should check every few months to see your interest and total amount. Here is how to check SBI PPF account balance online.

Method 1 – Through SBI Net Banking

Login to your SBI net banking account. Go to e-Services again. Then e-Tax. Then PPF Account. This time do not click open. Click on "View PPF Account".

The system will ask for your PPF account number. Enter that number. Then you will see your full PPF account summary. You will see your total deposit, interest earned so far, and total balance.

Method 2 – Through SBI Yono App

If you have SBI Yono app on your mobile phone, open it. Login using your MPIN. Then go to the deposits section. Find PPF. Click on it. You will see your PPF balance instantly. This is the fastest way.

Method 3 – Through SMS

You can also check SBI PPF account balance by sending an SMS. But for that, you must register for SBI quick services. Most users find net banking and Yono app easier. So I suggest you use those.

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Can I Extend My PPF Account Online in SBI

Many people do not know this. Your PPF account is for 15 years. But after 15 years, you do not have to close it. You can extend your PPF account in blocks of 5 years. And yes, you can do this extension online in SBI.

So the answer to "can I extend my PPF account online in SBI" is yes. You can extend it very easily.

When to Extend Your PPF Account?

You must apply for extension within one year from the date your 15 year period ends. If you miss this time, the bank will think you want to close the account. So do not delay.

How to Extend PPF Account Online in SBI?

Login to your SBI net banking. Go to e-Services, then e-Tax, then PPF Account. Look for an option called "Extension of PPF Account" or "Extend PPF". Click on that.

You will be asked to choose the extension period. You can choose 1 block of 5 years or 2 blocks of 5 years. That means you can extend for 5 years or 10 years.

After selecting, click submit. You do not need to pay any extra fee for extension. Your PPF account will continue and you can keep putting money in it.

Two Types of Extension

SBI gives you two choices during extension.

1. Without fresh deposit – In this type, you do not put new money. But your existing money stays in the account and keeps earning interest. You can take out money anytime.

2. With fresh deposit – In this type, you keep putting new money every year. This is good if you still want to save tax. You can put up to 1.5 lakh rupees per year. But you can only withdraw once in a year.

Most people choose the second type because they still want to save tax.

SBI PPF Account Opening Form – Online vs Offline

Some people still like to do things on paper. They ask for SBI PPF account opening form. Let me explain the difference between online and offline form.

Online Form

When you open PPF account through SBI online, the form you fill on the website is the digital SBI PPF account opening form. You do not need to print anything. You do not need to sign anything with pen. Your digital signature and OTP are enough.

Offline Form

If you go to the SBI branch, you will ask for Form A. This is the physical SBI PPF account opening form. You have to fill it with a black pen. Then you have to submit it with your photo, PAN copy, and address proof. You also have to give a cheque or cash for the first deposit. The branch officer will then open your account in 2 to 3 days.

Which One is Better?

Online is better for most people. It is faster. You do not have to stand in line. You do not have to pay for photocopies. You can do it at night or on Sunday also. Offline is only for those who do not have internet banking or who feel more comfortable with paper.

SBI PPF Calculator – How to Use It

Before you put money in PPF, you should know how much your money will grow. The SBI PPF calculator helps you do that. This tool is available on SBI website and on many other finance websites.

What is SBI PPF Calculator

It is a simple tool. You enter three things. First is how much money you will put every year. Second is for how many years you will put money. Third is the current interest rate. The calculator then tells you the total amount you will get at the end.

How to Use SBI PPF Calculator Step by Step

1. Go to SBI official website. Search for "PPF calculator" in their search box.
2. You will see a box with empty fields.
3. In the first field, enter your yearly deposit. For example, enter 50000 if you want to put 50 thousand rupees every year.
4. In the second field, enter the number of years. For a new PPF account, enter 15 years.
5. In the third field, the current interest rate will already be there. If not, type 7.1.
6. Click on calculate.

The calculator will show you two numbers. One is the total money you put in. Second is the total money you get at the end including interest. The difference is the interest you earned.

Example of PPF Calculation

Suppose you put 50000 rupees every year for 15 years. Total money you put from your pocket is 7.5 lakh rupees. With interest at 7.1 percent, you will get around 14 lakh rupees at the end. This means your money almost doubled.

You can try different amounts in the SBI PPF calculator. Put 1.5 lakh every year for 15 years. Your total investment is 22.5 lakh rupees. Your final amount will be around 42 lakh rupees. This is a very good return for a safe government scheme.

Common Problems and Their Solutions

Sometimes people face problems when they try to open PPF account through SBI online. Here are some common issues and how to fix them.

Problem 1 – PPF Option Not Showing in Net Banking

If you do not see PPF option under e-Services, it means your net banking is not fully activated. Some SBI accounts have limited net banking. You need to visit your home branch and ask for full net banking access. Tell them you want to open PPF online. They will activate it in 5 minutes.

Problem 2 – Aadhaar Not Linked to SBI Account

If you get a message saying Aadhaar not found, then your Aadhaar is not linked. You can link it online through SBI net banking. Go to My Account and then Link Aadhaar. Or you can visit the branch. Without linked Aadhaar, you cannot open PPF online.

Problem 3 – OTP Not Coming on Mobile

This happens if your mobile number is old or not registered. Check your mobile number in your SBI passbook. If it is wrong, go to the branch and update your mobile number. After update, wait 24 hours. Then try opening PPF account again.

Problem 4 – PPF Account Already Exists

Remember that one person can have only one PPF account. If you already have a PPF account in any other bank like Post Office or HDFC, you cannot open another one. You can only transfer that account to SBI. Transfer is a different process. You cannot open a new one.

Important Rules About PPF Account You Must Know

Many people open PPF account but do not know the rules. Then later they face problems. Read these rules carefully.

• Minimum deposit in a financial year is 500 rupees.
• Maximum deposit is 1.5 lakh rupees per financial year.
• If you do not deposit at least 500 rupees in a year, your account becomes inactive. To make it active again, you have to pay 50 rupees fine for every inactive year plus the minimum deposit.
• You can deposit money in lump sum or in 12 instalments. You can put 1000 rupees one month and 5000 another month. No problem.
• You cannot take out money for first 5 years.
• After 5 years, you can withdraw some money. The withdrawal amount is limited. You can withdraw up to 50 percent of the balance at the end of the fourth year.
• You can take a loan from your PPF account from the third financial year to the sixth financial year.
• The loan amount is up to 25 percent of your balance at the end of the second year.
• You have to repay the loan within 36 months. Interest on loan is 1 percent more than the PPF interest rate.

Conclusion

Opening a PPF account through SBI online is very easy if you follow the correct steps. You do not need to go to the bank. You do not need to fill any paper form. You just need your SBI net banking, linked mobile number, Aadhaar, and PAN card. The whole process takes less than 10 minutes.

After opening the account, remember to check your SBI PPF account balance every few months. Use the SBI PPF calculator to plan how much to save. And after 15 years, do not forget that you can extend your PPF account online in SBI for another 5 or 10 years.

PPF is not a get rich quick scheme. It is a slow and steady way to build a big fund for your future. Start today with 500 rupees. Then add regularly. After 15 years, you will thank yourself.

FAQs

Can I open PPF account for my child through SBI online?

Yes. You can open PPF account for your minor child. You will be the guardian. The process is same. But you will need the child's Aadhaar and PAN if the child has one. If child does not have PAN, you can still open using the child's birth certificate. But it is easier to open offline for a minor.

Is PAN card compulsory for opening PPF account?

Yes. PAN is compulsory because PPF is a tax saving instrument. The bank reports your PPF investment to the income tax department using your PAN.

What is the current PPF interest rate in SBI?

The current PPF interest rate is 7.1 percent per year. This is set by the government every three months. SBI follows the same rate. Check the official SBI website for the latest rate.

Can I close my PPF account before 15 years?

You cannot close your PPF account before 15 years unless there is an emergency. The government allows early closure only for very serious reasons like a life threatening disease or for higher education of your child. You have to give proof. If allowed, you will get less interest.

How many times can I extend my PPF account?

You can extend your PPF account as many times as you want. Each extension is for 5 years. There is no limit on number of extensions. Some people keep their PPF account for 30 years or more.