Saturday, September 8, 2012

How to open PPF Account online - SBI and ICICI bank

Online PPF Account with SBI and ICICI bank India
Now you can open PPF or Public Provident Fund account online in India with ICICI bank and State Bank of India (SBI). This is a major step to increase popularity of PPF or Public Provident fund account among individual especially youngster who love convenient of net-banking from office or home. All major financial and saving product like fixed deposit or FD,  recurring deposit or RD and mutual funds are already available online, which means hard to choose PPF account over these personal saving instruments.Now since PPF account is also available online you can get all benefits of PPF account with the convenience of net-banking in India.



What is PPF or Public Provident Fund account in India
PPF or Public Provident Fund account is a government scheme to encourage individuals to invest money for future. PPF or Public provident fund account is one of the best options to invest money for risk-averse people i.e. people who don't want to invest money in equities or Mutual fund. PPF not only gives fixed and higher interest rates than fixed deposit though this changes and current PPF interest rate which are 8.8% is little lower than Fixed deposit rates, But PPF interest rates are not volatile like fixed deposit rates which keep changing every 15 days.



You can similarly check your EPF balance online  as well, this is convenient if your EPF account is lying on the post office and not with any major bank like ICICI and SBI which allows opening PPF account online.but also your PPF (Personal Provident Fund) account balance. I still prefer to open PPF bank account with SBI or ICICI to have visibility on my PPF account anytime from anywhere.



Why should you open Online PPF Account?

1) The convenience of net banking, you can deposit money or installments into your PPF account from your convenience by using net banking facility of SBI and ICICI bank. This is the single most feature which promoted many of my friends to open their PPF account with SBI and ICICI bank. Though you can also open PPF or public provident fund account in Post office, it doesn't provide a net banking facility for depositing money.


2) Attractive rate of interest, PPF account provides 8.8% per year which is credited to your account on the 31st march of every year.

3) One of the major tax benefits of investing in PPF account is that it's reduced your taxable income, which may save you from paying the high rate of income tax. You can invest up to 1 lakh into PPF or personal provident fund Account, which is exempted from income tax in India. This makes effective interest rate on PPF account even higher.


Can I open PPF account online with SBI and ICICI bank

4) As a smart investor, you know how important is to allocate your money to a different asset (Asset allocation) and debt is one of the important parts of asset allocation. Given high volatility in Stock market and the poor run of almost 5 years, debt as an investment option is getting popular. In my opinion along with fixed deposits, PPF is the best investment option for debt. PPF is backed by the government, it's less risky and provides long-term investment option.

5) Another tax benefit of PPF account is that interest earned on PPF account is completely tax-free i.e. you don't need to pay any income tax on interest earned on your PPF account while interest earned on fixed deposit is taxable and subject to TDS.


Many salaried people who want to open PPF  account just delay it because of hassle involved in it. I hope with the option of opening PPF account online with SBI and ICICI bank, they can also open their PPF account quickly and start investing on PPF to avail tax benefit and keep their money safe with a assured interest rate of 8.8% per year with PPF (personal provident fund) account.

8 comments:

  1. I am so glad for this posts, finally I saw some good instructions.

    ReplyDelete
  2. How to open PPF Account online - SBI and ICICI bank?

    Where is the answer for above question :)

    Article is giving all other information related to PPF account except 'How to open'

    ReplyDelete
  3. @Anonymous go to ICICI bank or SBI bank site to get how to open instruction

    ReplyDelete
  4. No doubt this is an excellent post I got a lot of knowledge after reading good luck. Theme of blog is excellent there is almost everything to read, Brilliant post.

    Remit Money

    ReplyDelete
  5. Good points, but how the
    above image is related to this post? :-)

    ReplyDelete
  6. Opening PPF account in ICICI or SBI is not fully online. Though most of the steps are online, you still need to sign the form and personally submit the form to there nearest branch. ICICI bank only allow you to open PPF account on some designated branch, full list of that can be found on http://icici.com. Here are exact steps to open an online PPF account on ICICI bank, assuming you already have savings account with them and know how to use there netbanking client.

    Apply for a PPF account
    Step 1: Fill in the details required for opening a PPF Account
    Step 2: Take a print out of the pre-printed form, affix your photograph and sign on the form
    Step 3: Submit the application form and the nomination form to any one of our branches
    The PPF account will be opened only in a designated branch of ICICI Bank authorized by the ministry of finance. To view the list of these branches please click here . Please mention the name of the branch where you wish to open your PPF account on the application form.

    ReplyDelete
  7. SBI has lots of features which are missing in case of ICICI. In ICICI you can't even generate meaning full statement online(It does not contain your name, address and a/c type). Even statement generated from ICICI branch does not mention a/c type. Moreover you can't set a monthly option of online transfer in case of ICICI. Here is a complete comparison of features provided by ICICI PPF vs SBI PPF: www.http://curiouslogic.in/2014/02/how-sbi-ppf-is-far-better-than-icici-ppf/

    ReplyDelete
  8. Great post...According to me in my opinion You can open Ppf account offline in post office or many banks.please visit your nearest branch. you need to submit a form and provide address & id proof along with.Ppf account sbi- open invest online, There is small ppf account opening form. you can download this form online also. you have to fill the personal detail, pan, initial subscription amount and nomination.. Ppf account sbi : open transact online, How to transfer ppf account from post office to ppf account in sbi. as per the ppf account scheme, a subscriber can transfer his ppf account from any post office.sbi mutual fund online

    ReplyDelete

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