How to Open a PPF Account: Quick & Easy Steps to Maximise Your Savings

Public Provident Fund commonly referred as PPF is among the safest and most dependable investment available for the Indian public. It holds tax advantages as it belongs to government sponsored product and returns better interest than many other financial products. Whether it is a retirement plan that requires slow accumulation of wealth or one that seeks an investment that requires steady accumulation of wealth without much risk, PPF account offers a perfect opportunity.

Now SBI has made it easier to open and operate a PPF account through its YONO SBI app. Here are the few detailed steps and understand how you can get the best returns in your PPF account with the help of the YONO SBI app.

What is a Public Provident Fund (PPF)?

A PPF is a government-backed long-term saving scheme, making it one of the most popular long-term investment options. Contributions towards a PPF account have become very popular due to their considerable interest rates and tax-free returns. The amount paid to a PPF account gets a tax benefit under Section 80C of the Income Tax Act, 1961 and matures after 15 years.

Benefits of Opening a PPF Account

Opening a PPF account offers several advantages, including:

• Government-backed security: Your investment is safe and risk-free.
• Tax exemptions: Interest earned on a PPF account is tax-free, and deposits qualify for deductions under Section 80C.
• Flexible Contributions: You can invest in lump sums or make regular monthly contributions.
• Partial Withdrawals: You can make partial withdrawals from your account before maturity from the seventh financial year as per applicable guidelines.

Key Features of PPF Accounts

• Interest Rates: PPF interest rates are set by the government and reviewed quarterly.
• Tax-Free Returns: The maturity amount is fully exempted from taxes, making it an ideal long-term investment option.
• Eligibility: Any Indian resident above 18 years of age who are existing Bank (ETB) customers (registered on YONO SBI), having Aadhaar and PAN updated, can open a PPF account for themselves on YONO SBI.

Step-by-Step Guide to Opening a PPF Account through the YONO SBI App

Opening a PPF account using the YONO SBI app is quick and straightforward. Follow these steps:

1. Download the YONO SBI App from the Google Play Sore / App Store.
2. Log in to your account using your credentials and ensure that your KYC details are up to date.
3. Navigate to the 'Investments' section in the main menu of the app.
4. Select the option ‘PPF Account' to initiate the process.
5. Select Branch of your choice and enter nominee details (up to four nominees can be added for the PPF account).
6. Setup monthly standing instructions for contributions (optional)
7. Review the entered information and acknowledge and confirm Terms and Conditions.
8. Proceed further by entering the OTP sent to your registered mobile number.
9. Your PPF account is successfully created. You can now fund it immediately to activate the account.]

Managing Your PPF Account Online

The YONO SBI app makes it easy to manage your PPF account. Here's how:

• Check your PPF Balance: Go to the Deposits > Other Deposits to view existing PF balance.
• Update Nominee Details: To update your nominee for the PPF account, you may navigate to Service Request > Account > Manage PPF Nominee wherein you can add, remove, or edit nominee details.

Maximising Your PPF Savings

To get the most out of your PPF account, follow these tips:

Understanding Compound Interest

PPF earns compound interest, where the interest is reinvested to generate higher returns over time. The longer you leave your money in the account, the more it grows.

Strategies for Optimal Contributions

To maximise your returns, contribute at the beginning of the financial year rather than at the end. This allows you to earn interest for the entire year on your full contribution.

Leveraging Tax Benefits

By investing up to ₹1.5 lakh annually, you can take full advantage of the Section 80C tax benefits and reduce your tax liability.

Conclusion

A PPF account offers a secure and tax-free way to grow your wealth over the long term. Whether you're saving for retirement or simply looking for a reliable investment option, the PPF account is a great choice. And with the YONO SBI app, managing your PPF account is easy and convenient.

YONO enables you to begin your savings journey today. Take charge of your secure financial future by downloading the app and managing PPF accounts.