SBI being the government's de-facto banker has the upper hand in collecting taxes or public investments (PPF). ICICI Bank on the other hand makes the best use of its private (largely foreign) ownership and international presence.
One is allowed to withdraw up to 50% of the PPF account balance after completion of five years from the end of the subscription year. Withdrawals are tax-free.
State Bank of India (SBI)
PPF is a government-run scheme; thus, the rate of interest is the same in all banks for PPF. Current EPF interest rates for FY 2019-20 are 8.50% which was 8.65% earlier. Non salaried individuals such as businessmen, self employed professionals are not covered under EPF.
Below is the list of banks offering PPF account:
- State Bank of India or SBI PPF Account.
- HDFC Bank.
- ICICI Bank.
- Central Bank of India.
- Union Bank of India.
- BOI – Bank of India.
- Bank of Maharashtra.
- BOB – Bank of Baroda.
The Public Provident Fund (PPF) is one of the most popular tax-saving investment options because of attractive rate of interest, safety features like government guarantee and immunity against attachment under any order or decree of any court, as well as benefits like tax-free interest and maturity.
Transfer PPF account to ICICI Bank
- Customer requires to submit PPF transfer request in the bank/post office where PPF account is held.
- The existing bank/Post office will arrange to send the original documents such as a certified copy of the account, the account opening application, nomination form, specimen signature etc.
Indeed, SBI is the best bank to open your PPF account .. On the contrary if you open your PPF account in ICICI bank then you have to visit branch .. mind it- HOME BRANCH .. to get funds credited to your PPF.
The best time to invest is between the 1st and the 5th of any month, preferably April each year. Interest is calculated for the calendar month on the lowest balance at credit of your account, between the close of the 5th day and the end of the month, and is credited at the end of every year.
The best time to invest in PPF account is between the 1st and 5th of every month. If you don't deposit the amount on or before the 5th of the month, you won't earn interest for that month.
A person can, and is required to, make contributions in each of those 15 additional financial years. As per current income tax laws, one can invest a maximum of Rs 1.5 lakh in PPF in a single financial year. The investment can be made either as a single lump sum or in maximum 12 monthly contributions.
When compared between the National Pension System and Public Provident Fund, NPS is the higher return vehicle for a portion of what you invest goes towards equity trading which signifies higher returns. PPF on the other hand is all about fixed returns and there is no scope for added frills.
Investment Amount/Monetary Deposit
The individual can deposit a minimum amount of Rs. 500 in the PPF scheme. The maximum limit of the deposit is now 1, 50,000. The upper or the maximum deposition limit has been increased very recently, from 1 lakh to 1.5 lakhs.The minimum investment required is Rs 500 every year to keep the PPF account active. You can make this deposit at any time during the year. However to maximize your returns, invest Rs 1,50,000 at the start of the financial year. Amounts deposited in April will earn interest for the whole year.
In case you fail to deposit the minimum amount of Rs 500/ in a financial year, your PPF account is marked as de-activated account. The silver lining is that it can be again activated by paying a small penalty. The account will only be closed after maturity and will continue to earn interest till it is closed.
Checking PPF Account Balance Online
- Make sure you have internet banking activated for your linked bank account.
- Log in through your internet banking user ID and password to check the details of your PPF account.
- Once you are logged in, you can check your PPF account status and balance.
Through ICICI Bank Internet banking, you can:
- Fill form online for PPF account.
- View your PPF account under your 'My Accounts' section in the logged in section.
- Transfer funds from linked Savings Bank Account online.
- View and print mini and detailed statement online.
Usually opening an account will take minutes. Time will be required for form filling and documents verification after that account is opened with a initial deposit of say Rs 1,000/- which you have to deposit and will take time as per waiting time in the branch.
You can nominate one or more nominees to your PPF account if you so wish. The PPF account holder has to mention the percentage of share in case the nominee is more than one person. But do remember nomination is not allowed to an account opened on behalf of minors.
Wadhwa says, "PPF rules, 1968 did not allow the individual to make more than 12 deposits in a financial year. However, as per the new scheme rules, there is no such restrictions, however, the total amount deposited in the financial year should not exceed Rs 1.5 lakh."
Investing in a PPF account provides tax exemptions on the entire deposit under section 80C of the Income-tax Act, 1961. Interest rates on PPF accounts are higher than standard interest rates on savings as well as fixed deposit accounts provided by commercial banks.
Interest payable on PPF is fixed quarterly by Ministry of Finance, Government of India from April 1st, 2016. Current PPF interest rates offered by SBI, ICICI and all banks is 7.10% as applicable from 1st April, 2020.
FD comes with more flexibility as compared to PPF. Hence, you can give more preference to FD. But if you want to invest for a longer period, then PPF is the best option. But remember, PPF comes with a lock-in period of 15 years.
Number of accounts
Persons having a PPF account in the bank cannot open another account in the post office and vice-versa. If two accounts are opened by the subscriber in his name by mistake, the second account will be treated as irregular account and will not carry any interest unless the two accounts are amalgamated.Most of the bank are doing good, however some are best as: SBI, PNB, BOB and ICICI which are giving you an option of easy account opening, online fund transfer to PPF account and easily view bank statement/passbook also providing Loan facility other benefits as PPF account holder.
A PPF account can be opened in a Post Office, some banks like State Bank of India (SBI) and ICICI Bank also provide the option of opening a PPF account. The account can be opened at branches or through online. Only if you have access to online internet banking, you can open SBI PPF account online.
Yes you can trust private banks(ICICI, HDFC or any other) which is operating PPF account. These are just working as a mediator to open as many as PPF accounts and make people aware about the Investment and it's benefits. Even though bank gets Insolvent Government will give your PPF money with Interest.
Checking PPF account balance online is simple and the service is available 24×7. To view details of various accounts including the PPF account, you need to log in using your internet/mobile banking credentials. Once logged in, you can check your current PPF account balance.
Make sure you have internet/mobile banking activated for your bank account. To view details of various accounts including the PPF account, you need to log in using your internet/mobile banking credentials. Once logged in, you can check your current PPF account balance.
Through ICICI Bank Internet banking, you can:
- Fill form online for PPF account.
- View your PPF account under your 'My Accounts' section in the logged in section.
- Transfer funds from linked Savings Bank Account online.
- View and print mini and detailed statement online.
First of all, you give an application to your ICICI bank Branch stating you want to transfer your PPF account to SBI. In the application you mention your SBI branch details. After that you submit your PPF account details letter to SBI, provided by your ICICI bank along with the Demand Draft.
