Public Provident Fund or PPF is a very popular small saving scheme in India. It is supported by the Government of India. Interests on this account are paid by Government and it is fixed for every quarter of the year. In this article we will discuss how to open a PPF account online from the comfort of your home.
PPF account is a long term investment account. The calculation of interest to be chargeable is specified by the Central Government of India in every quarter. Interests are calculated on the amount depositing within the first 5 days of the month. If any amount deposited on the 6th day of the month it will not be acceptable for calculation of any interest of that month. Thus, it is advisable to deposit the amount within 1st and 5th of the month to earn more interest and higher return.
- The minimum amount that is deposited annually is Rs. 500.
- The maximum amount to be deposited should not exceed Rs. 1.5 lakh
- The rules and regulations are the same for both minors and majors.
- 12 is the maximum number of times you can deposit your amount to PPF account.
- PPF account experiences maturity after the completion of 15 years from the closing date of the last financial year. For example, if anybody opens his PPF account on 10th February 2005, then his account will mature on 31st March 2020.
Also Read: When and How to Withdraw from PPF account
Who can apply for a PPF Account?
- PPF account cannot be opened as a Hindu Undivided Family (HUF) account or as a joint account. Only individuals can open a PPF account.
- Any senior member or parents can open a PPF account for their minor.
- Any non-resident individual of India will not be allowed to open a PPF account.
- However, if the person has become NRI after opening a PPF account, then he/she can continue the account.
You can open your PPF accounts at Public Sector Banks, Private Banks, and Post Offices. Private Banks likes Axis Bank, ICICI Bank you can open your PPF account via net banking. After opening an account in PPF you are given a PPF passbook, similar to a bank passbook where all kind of transactions is recorded. However, many banks again do not give any passbook, they ask you to check online.
Essentials Required for Opening a PPF Account:
The following document are essentially required to open a PPF account offline.
- A PPF form for opening an account is given from the bank or you can also download online.
- Your address proof for verification.
- Your ID proof.
- Two photographs of the account holder.
- And also the form for the second party as Nominee.
Why to Open a PPF Account?
- It is the best investment product which grow your wealth over a long term. If you want to see the magic of compounding a PPF account can show you.
- As it is regulated by the Government, whatever your principal money and interest you earn are safe and secured.
- Interest earned on the PPF balance is mentioned by the Government yearly and accrued to the account.
- Whatever your contribution might be, up to the maximum limit of Rs.- 1.5 lakh yearly and the interest earned on it are exempted from tax.
How to Open a PPF Account Online:
- Before opening a PPF account in a specific bank, make sure you have savings account with the same bank and internet banking facility.
- Then you have to log in to the website or portal of the specified bank.
- Select the option ‘Open a PPF account’.
- Select on the ‘Self Account’ or a ‘Minor Account’ option whichever purpose you are opening for.
- Now, enter all the details as per requirement.
- Completing the above formalities, you have to write the amount of money you want to deposit in your PPF account.
- Then you have to follow certain instructions that allow the bank to deduct the certain amount of money specified, at a fixed interval or in a huge quantity.
- An OTP will be sent to your registered mobile number linked up with the bank.
- Once all these verifications are done, your PPF account has been created.
- Pen down the PPF account number for future purposes.
- Now due to KYC, the Central Bank of India i.e. Reserve Bank of India may ask you to fill up the hard copies of the form and the attached documents as proof and submit it to your respective bank.
After all such formalities, a passbook is provided to the customer to keep track of the transactions.
How to Check PPF Balance Online?
- To check PPF balance, make sure your net banking is active with your specified bank.
- Log in to the PPF account, providing all your required details.
- After logging in with all your details, your PPF account opens on the screen.
- If you log in to your PPF account through net banking, it allows you to transfer your fund to your PPF account.
- Always check the payment statement immediately after you make a transaction.
It is to be noted that every bank has a little bit of difference in the method of opening a PPF account. However, the general steps for each bank remain the same. Likewise, these are the following banks, having distinctive methods to open PPF account:
For opening a PPF account in ICICI bank the steps are:
- Go to the ICICI Bank portal and you have to log in there with your required documents.
- Select on the ‘MY Account’ option and then click on the ‘PPF Account’ option.
- Choose the option ‘Open Now’.
- Enter the correct and proper details of your bank account from where you want to transfer your fund to the PPF account. You will be asked for your PAN card details.
- Give the details of your bank branch.
- With the bank details verification, there will be all personal details verification. Provide necessary details that include your address, your Nominee, and select on the ‘Proceed’ button.
- Then your Aadhaar card verification will be done. If your Aadhaar card is already linked up then you can directly click on ‘Generate OTP’, otherwise you need to update your Aadhaar card online at first.
- An option of e-sign is also there with Aadhaar OTP for opening the PPF account online, easily.
- After completing these above procedures, your PPF account will be created. Your PPF account number will be displayed to you. All kinds of transaction statement and also its annual statement should get displayed whenever you log in to your PPF account.
State Bank of India
- For opening a PPF account in SBI, you need to visit the SBI portal at the website www.onlinesbi.com and log in there with the necessary details.
- Select on ‘New PPF Account’ option.
- You will land on the option ‘New PPF Account’ page on the SBI website. On the screen, all the details of your bank account and PAN number will be shown.
- Type your bank account number from where you want to transfer your fund to your PPF account.
- Provide bank branch details. After typing the code it will automatically show you the branch details.
- The verification of your details will be made. After verification is done, you need to click on the ‘Proceed’ option.
- Once all these above steps are completed, your PPF account will be created. Your all transaction statement and annual statement must be displayed while logging in into your account.
- You can then print your account from the option ‘Print PPF Online Application’ and then you have to go to your branch with your KYC document and a photograph within 30 days.
Presently, Axis Bank is not allowing to open a PPF account, online. Hence, these are the following procedures to open a PPF account offline:
- You have to visit the nearest Axis Bank branch to get the PPF form or you can download the same, online.
- Collect the print of the same and fill it up and submit at the nearest Axis Bank branch.
- You can pay your initial deposit as the opening balance in cheque, draft and in cash, knowing the minimum deposit in a year is Rs.-500
- Submit your self attested KYC document Xerox with a photograph.
- You must carry your all originally required credentials, as it will be needed for verification.
- Once all the formalities are done and your account is active, you will receive a PPF passbook.
- You will have to collect the passbook by visiting your branch or you can also access it online.
- You have to sign in to the net banking of HDFC Bank.
- Then you will find an option ‘Public Provident Fund’, click on it.
- On the next page, they will show you all the details. Confirm the details and type the amount you want to get deposited.
- Select on the Nominee option, put all the details, and submit it.
- If your bank account is linked with the Aadhaar card then your form will be submitted and a confirmation message will be sent to your registered mobile number.
- If your bank account is not linked up with the Aadhaar card, then you have to link it to complete the formalities.
- After creating the PPF account, you will be able to transfer funds from your savings account to the PPF account.
So these are some banks whose openings of PPF account procedures are mentioned. The procedures are more or less the same. The general guidelines apply to all. We all must open a PPF account with any Financial Institution where we already have our savings account active. It will be easy to invest and track.
Also Read: ELSS vs PPF where to invest
PPF account is a long term investment planning hence, it gives you the chance to accumulate a significant wealth. You are not allowed to withdraw money before the specified period. The goal of the scheme is to assemble small savings. It offers reasonable returns and tax benefits too.
You can only withdraw money after it completes its maturity date that is after 15 years from the date of opening the account. The involvement of the amount in the PPF account is entitled to tax benefit U/S 80(C ) of the Income Tax Act. Interest earned and maturity takings are exempted from payment of any tax.
This is suitable for those who are looking for long term investments. People who are planning for short term goals and choosing a PPF account is not the right choice.
Share the article with others. 🙂