Public Provident Fund Account is a very popular scheme started by government for a long term investment. This is a very flexible investment for public as you don’t have any fixed amount to deposit every month in your PPF account. You can deposit starting from Rs. 500 to Rs 1,50,000 in one financial year. Depending on how much you can invest per month interest will be added for the amount you invested.
Benefits of PPF account.
- You get an interest rate of 8% annually.
- You can show your PPF account info as Investment proof report
- It is a long term investment for 15 years
- You can withdraw 50% of deposited amount after 7 years of your PPF account
- You can start PPF account with initial deposit of Rs 100
- You can inverts an amount low up to Rs. 500
- You can invest 12 times in a year for your account
- You can apply for loan if you have active PPF account
- Loan can be availed in the 3rd or 6th financial year
- You can extend the investment period by 5 year after maturity of your account
- You can deposit money by cash, cheque or online transfer as well
- You can link your saving account to your PPF account for online transection
- You can open PPF account online as well
- You can view you PPF account statement online
- Maturity amount of PPF account is non-taxable
- It is useful for your retirement planning
- As it is government’s scheme so it has low risk investment
- It is easily accessible for ever individual wishing to have a PPF account
Different bank interest rate for PPF account for current financial year.
- SBI (State bank of India) offers interest rate of 8.7% per annum
- ICICI offers interest rate of 8% per annum
- BOB (Bank of Baroda) offers interest rate of 8.7% per annum
- BOI (Bank of India) offers interest rate of 8.7% per annum
- Canara bank offers interest rate of 8.7% per annum
- Post office offers interest rate of 8% per annum
- HDFC offers interest rate of 7.6% per annum
Below chat shows interest rate for PPF account over the year.
Eligibility to open PPF account
- One person can hold only one PPF account.
- Person wishing to open PPF account should be resident Indian
- No upper limit is required for opening PPF account
- PPF account for Minor (age below 18 year) can be open and operated by their guardian
- Grand parents cannot open account for their grand children
- Non-resident Indians (NRIs) cannot open a PPF account.
- After opening PPF account if anyone leave India and become NRIs they can still continue their PPF account.
- NRIs are restricted to extend their PPF account after maturity
- Foreigners cannot open a PPF account.
Documents required for opening PPF account
- Documents to open Public Provident Fund account are ID proof such as Passport, PAN Card, Aadhar Card, Driving License, Voter’s ID, Employer’s letter, Utility Bill, Telephone bill, Rental/Lease Agreement, Bank Account Statements, Ration Cards, Signed Cheque
- Individual passport size Photographs
- The account opening form, along with nomination forms if nominees are being named.
- For Minor PPF account age proof will be required like birth certificate or school certificate
How to open PPF account in few simple steps
- Go to your nearest bank branch where you want to open your PPF account. There are different types of form which can help you open PPF account. Below are the forms with its use.
- Fill the form and attach all the required documents, submit the form to respective employee, once all the formality is done you will receive a pass book with all your account details. And you are good to go with your new PPF account.
- Same step to be followed for minor account holder as well
How to open PPF account online
- You must have a saving account in the bank where you are wishing to open PPF account
- You should have net banking enabled for the saving account
- Your net banking should be KYC approved
- Your details should be updated with active details (like phone number or email id)
- Go to the online site for your bank and login to your account
- On the left side corner select New Public Provident Fund account option
- New page will open with the existing details of your account
- Give details of the bank from which you want to link your PPF account (Click proceed once done)
- Give your nominee details when required
- To verify your details and your nominee details mail/otp will be sent from bank
- Once everything is verified click on proceed
- Once everything is done print the PPF online application form and visit the nearest bank branch and submit the form with your passport and KYC document within 30 days.
- Once bank confirm bank you are good to go with your new PPF account
Points to be noted while opening a PPF account
- Only one Public Provident Fund account can have per user
- All ID proofs should have same name and details
- Initial amount to deposit can start from 100 to 1,50,000 Rs. Per financial year
- A PPF account can be opened online as well
- An account for Minor cannot be opened online
- None residual Indian cannot open PPF account in India
- Once online steps are complete you need to go to bank branch
- Joint-account holders cannot open a PPF account online.
- You need to visit the branch to get the passbook for a PPF account.
- Best time to invest in PPF account is 1st to 5th of every month
- Best month to open PPF account is April of each month
- You cannot withdraw money before 7 years of your PPF account
- Only 50% can be withdraw after 7 years of your PPF
- Rest amount can be taken out after maturity period
Thanks for reading!