INSUBCONTINENT EXCLUSIVE:
The original duration of SBI's PPF account is 15 years.State Bank of India (SBI) offers a host of services under its personal banking
portfolio including the National Pension System (NPS) account and PPF (Public Provident Fund) account
Both the PPF and NPS account offer financial security to subscribers at a later stage of life
PPF account provides an investment avenue with decent returns coupled with income tax benefits, said SBI on its portal- sbi.co.in
National Pension System (NPS) is a defined contribution pension system that provides social security to all citizens of India
name as well as on behalf of a minor can open PPF account at any branch
As per extant instructions, opening of PPF accounts in the name of Hindu undivided family is not permitted
A minimum of Rs 500 subject to a maximum of Rs 1,50,000 per annum can be deposited, said SBI
The amount can be deposited in lump sum or in a maximum of 12 installments per year.The original duration of SBI's PPF account is 15 years
Thereafter, on application by the subscriber, it can be extended for 1 or more blocks of 5 years each, as mentioned on SBI's portal
The rate of interest of PPF account is determined by central government on quarterly basis
According to SBI, at present the rate of interest is 7.6 per cent per annum
Interest is calculated on the minimum balance (in PPF Account) between 5th day and end of the month and is paid on March 31 every
Interest income is totally exempt from Income Tax
Amount outstanding to the credit is fully exempted from Wealth Tax also.SBI's NPS accountAn NPS account can be opened by individuals between
An NPS account can be maintained at a minimum contribution of Rs 6,000 a year
Investment in NPS can be used to avail a tax benefit up to Rs 2 lakh in a financial year under Sections 80CCD(1) and Section 80CCD(2) of the
NPS has a longer lock-in than PPF account and the corpus stays locked-in till the age of 60 years
Withdrawal before 60 is also allowed but in that case at least 80 per cent of the corpus ought to be allocated to annuity, which is a
tax-free withdrawal.NPS offers two types of accounts: Tier 1 and Tier 2
While the Tier 1 NPS account is strictly a pension account which doesn't allow withdrawals, the Tier 2 account - known as investment account
The Tier 1 NPS account offers tax benefits while the Tier 2 NPS account doesn't offer any such benefit.
