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I'm an indian citizen and about to open a PPF Account in a Nationalised bank. I have had enquiry in ICICI Bank and in SBI Bank today. Their interest rates are as 8.8 and 8.7 respectively.

Can one tell me is there any difference in opening the account in one bank vs other. What are some of the factors one needs to look into before deciding.

Are there any alternatives to investing in PPF, what are some of the other schemes backed by RBI or by a Nationalised bank where I can invest.

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  • Requests for recommendation of products or services are off-topic for this site.
    – Dilip Sarwate
    Commented Mar 22, 2014 at 20:00
  • Modified to make this a bit generic.
    – Dheer
    Commented Mar 23, 2014 at 5:16

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Opening a PPF account in any Bank/Branch is same. The rate of interest is decided by the Govt and not Bank. It is same across all Bank's.

You need to find out a Bank that is convenient to you, ie is nearby and allows credits by Internet [if you feel its important] etc. Apart of that there is no real difference.

Apart from PPF, you can also take a look at NPS which is meant for long term retirement, one can allocate the funds in NPS into Index funds as well.

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There are a few things to note before opening a PPF account;

  1. PPF accounts have a locked interest rate. The interest rate at the time of opening the account will be the rate of interest that you receive for the duration of the account.
  2. Upto 1.5 lakhs a year can be invested into your ppf account. This amount will then be exempt of tax.
  3. If you don't regularly deposit into your ppf account, you will need to pay a penalty.
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    On Point 1. The interest rates are revised every year and are not locked at the time of account opening.
    – Dheer
    Commented Dec 1, 2015 at 12:13

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