Open PPF Account Online and Offline – Features, Documents Required and Benefits
PPF (full form: Public Provident Fund) is a government backed long-term savings scheme that comes with many benefits, such as assured returns, high interest rate (current interest rate is 7.10%), tax savings, and more. In this blog, we will guide you on how to open a PPF account and provide the latest information on documents required, eligibility, and benefits among others.
How to Open a PPF Account Online?
- Visit Your Bank’s Website
Log in to the net banking portal of your bank account.
- Find the ‘Open a PPF account’ Option
Click on it.
- Indicate Who You Want to Open the Account For
Depending on whether you want to open the account for yourself or a minor you are the legal guardian to, choose ‘Self Account’ or ‘Minor Account’ respectively.
- Fill in Relevant Details
Enter all the necessary information, verify the same, and then submit your application.
- Indicate the Amount of Deposit
Enter the amount you wish to deposit per financial year. You can choose to set up an auto-pay or do it manually. If you set up auto-pay, the specified amount will be debited from your savings account and transferred to your PPF account.
- You Will Receive an OTP
After you submit the form, an OTP will be sent to your registered mobile number for verification of the transaction.
- Validate the OTP Received
Once you enter and validate the OTP received, you will get a success mail to your registered email ID with the details of your PPF account. This confirms that your PPF account was successfully opened.
How to Open a PPF Account Offline?
Step 1: Fill out the PPF application form with the relevant information.
Step 2: Attach the supporting documents.
Step 3: Affix photographs in the space provided.
Step 4: Go to the bank or post office branch where you have a savings account and want to start a PPF account.
Step 5: Submit the completed form along with the supporting documents to an authorised representative of the bank or the post office.
How to Open PPF Account in Different Banks?
To open a PPF account online with State Bank of India (SBI), India’s largest public sector bank, HDFC, India’s largest private bank, or India Post, the widest postal network in the world, follow the steps described below:
How to Open a PPF Account Online in HDFC Bank?
Step 1: Sign into HDFC net banking
Step 2: Click on ‘Public Provident Fund’ under the options tab
Step 3: On the next screen, you will be shown your account details. Here, you will also have to enter the amount/indicate the amount you want to deposit in the PPF savings scheme. Note that you can deposit as little as ₹500 and as much as ₹1.5 Lakh per financial year
Step 4: You can choose to add a nominee, if you wish. Do that and then click on ‘Submit’
Step 5: If your Aadhaar is linked to your HDFC savings account, your PPF account will be opened in one working day. If your Aadhaar is not linked to your savings account, you may first have to link your account to Aadhaar
Step 6: Once your PPF account has been created, you will receive a confirmation message from the bank. You can now transfer money from your HDFC savings account directly to your PPF account, if you wish to
How to Open a PPF Account Online in SBI
Step 1: Login to SBI’s netbanking portal
Step 2: From the side menu, select and click on ‘New PPF Accounts’
Step 3: You will be redirected to a new page. The ‘New PPF Accounts’ page will have pre-filled details, such as your name, customer identification number, PAN card details, and your registered address
Step 4: Now, enter the bank account details to indicate the savings account from which you want to transfer money to your PPF account. You can click on the ‘Get Branch Name’ button to get the branch code for the same bank
Step 5: PPF deposits can be made either periodically or in a single lump sum. Choose the amount you wish to deposit into your PPF account and the frequency of deposit
Step 6: On the next page, you will be shown your personal information and relevant nominee details. Once you verify the information, click on the ‘Proceed’ button
Step 7: Your PPF account with SBI will be created almost instantaneously and the account number will be shown on the screen
Step 8: Make a note of it for future reference
How to Open a PPF Account in a Post Office
Step 1: Login to your Post Office personal banking account
Step 2: After you login, click on the ‘General Services’ tab
Step 3: From this tab, select the ‘Service Requests’ option
Step 4: Now, click on ‘New Requests’ and select the ‘PPF Accounts – Open a PPF Account’ option
Step 5: Enter/indicate the minimum amount you want to deposit into your PPF account
Step 6: Choose the post office savings account from which you want to transfer money into your PPF account (once created)
Step 7: Select ‘Click Here’ to accept the terms and conditions
Step 8: Once you click on ‘Submit’, you will have to enter your transaction password
Step 9: Enter the transaction password and click ‘Submit’
Step 10: You can either view or download the deposit request. You can use this for future reference or to track your request. So, keep it handy
Step 11: Once money has been deposited into your PPF account, you can view the account balance from the ‘Accounts’ tab of the Post Office internet banking portal
Also Read
Documents Required to Open a PPF Account
The following documents may be required:
- The PPF account opening document, which you can collect from the branch of an authorised bank or post office. You could also download the form from the bank’s or post office’s website
- 2 to 3 current photographs, which you will have to affix to the form, if you decide to opt for the offline process
- Proof of identity:
- Aadhaar card
- PAN card
- Passport
- Driving licence
- Voter’s ID card
- MNREGA job card, attested by a State Government Office
- A letter issued by the National Population Register containing details, such as your name and address
- Proof of address:
- Aadhaar card
- Telephone bill for a connection registered under your name
- Electricity bill
- Ration card
- Letter from the National Population Register that clearly mentions your name and address
- Your MNREGA job card (if applicable), signed by a State Government Officer
- If you are opening a PPF account for a minor, you may need to provide their birth certificate
- For the offline process, you may have to submit a pay-in-slip or a signed cheque to transfer the money to the PPF account. For the online process, the money would usually be transferred directly to the PPF account from your savings bank account
Eligibility Criteria for Opening a PPF Account
- An Indian resident can apply. However, an NRI can continue their account for 15 years, provided it was opened when they were an Indian citizen
- You should have a savings account with the respective bank along with a net banking facility. Also, an individual can have one PPF account under their name
- You should have your Aadhaar number linked with your savings account and mobile number
- A minor can also have a PPF account. There is no minimum age requirement. However, until the minor turns 18 years, their account must be handled by a legal guardian
- A Hindu Undivided Family (HUF) is not eligible to open a PPF account
PPF Interest Rate Calculator
Want to know what the maturity amount on your PPF savings will be based on your yearly contributions and tenure? Using a PPF interest calculator would be a smart choice because these calculators are:
- Fast
- Accurate
- Easy-to-use
The Navi PPF Calculator will give you the total invested amount, the total interest earned, and the maturity amount.
Features of PPF Account
- The minimum and maximum investment amount are ₹500 and ₹1.5 Lakh per year
- The investments can be made either in a lump sum or in instalments. A maximum of 12 instalments can be made in a year
- The maturity period of a PPF account is 15 years. However, it can be extended in blocks of 5 years each
- You can withdrawal up to 50% of your savings after 7 years from the year in which the account was started
- Premature closure of a PPF account may be possible if you or a dependent if terminally ill and require the money for treatment, if you want to pursue higher education, or if your status of residency changes
- You could get up to 25% of the total savings as a loan at the beginning of the third fiscal year. As per PPF Withdrawal Guidelines 2021, an interest rate of 1% will be charged on the loan.
- Both the principal amount and the interest earned from your PPF savings will be tax-exempt under Section 80C of the I-T Act, 1961
- The interest rate offered on PPF savings currently is 7.1%
How to Open PPF Account for Minor?
- There is no minimum age requirement for minors
- An account can be opened for a minor by their parents or a legal guardian. Also, they have to manage the account until the time the minor turns 18
- Both parents of a minor cannot open separate PPF accounts for the same child
- If you want to open a PPF account for a minor, you will have to submit their birth certificate
- An adult can open one PPF account per minor for whom they are the legal guardian
- Until one or both the parents of a minor are alive, grandparent(s) cannot open a PPF account for the minor
Where Can You Open a PPF Account?
You can open a PPF account in a post office or a bank where you already have a savings account. Some of the banks that provide PPF account services are listed below:
- HDFC bank
- ICICI bank
- Axis bank
- Allahabad Bank
- Andhra Bank
- IDBI Bank
- State Bank of India
- Syndicate Bank
- Bank of Baroda
- Bank of India
- Kotak Mahindra Bank
- Union Bank of India
- IDBI bank
- Dena bank
- Central Bank of India
- Oriental Bank of Commerce
- Punjab National Bank
- Bank of Maharashtra
- Dena Bank
- Vijaya Bank
- UCO Bank
How to Check PPF Balance?
You can either check your PPF balance online or offline. Follow the steps below:
Online:
Step 1: Login to the netbanking portal of your bank or Indiapost, where you have your PPF account
Step 2: Now, visit the section where you can check PPF account balance and status
Step 3: Select or enter the PPF account number to check the balance
Offline:
Step 1: Visit the post office or bank branch where you hold your PPF account
Step 2: Go to the section where they update the PPF savings account passbook
Step 3: Get the passbook updated to know the current balance in your PPF account
How to Transfer a PPF Account?
You can transfer your PPF account if needed from one bank to another by following a few simple steps given below:
Step 1: Go to the existing bank account or post office and apply for a transfer. You will have to carry your existing PPF account passbook as well.
Step 2: You will have to surrender your old passbook.
Step 3: The old bank branch will then close your account and transfer the following documents to the new branch:
- The existing passbook
- A certified copy of the account details
- Your nomination form
- Your transfer request application
- The bank’s acknowledgement of your transfer request
- A demand draft or a cheque of the balance in your existing PPF account
- A specimen of your signature
- The original application form you had submitted at the time of opening the old existing account
Step 4: Upon receiving the documents, the new bank branch will intimate you.
Step 5: After this, you will have to visit the new branch office and submit a new application form along with the supporting documents for KYC.
Step 6: You will get a new passbook after the new account has been created.
Also Read
How to Close a PPF Account?
Under normal circumstances, your account will mature after 15 years. You can close it or extend it in blocks of 5 years each.
Under certain conditions, as mentioned below, premature closure is also allowed:
Step 1: If you (the account holder) or a dependent is seriously ill and require the money for treatment
Step 2: If you or a dependent wants to pursue higher education
Step 3: If your status of residency changes
Benefits of a PPF Account
1. Tax Savings
You can claim tax deductions of up to ₹1.5 Lakh under Section 80C of the Income Tax Act, 1961.
2. Assured High Returns
Get an assured interest rate of 7.1% on your savings. The Government of India reviews and determines the rate on a quarterly basis.
3. Compounding Benefits
The calculation for PPF follows the compound interest method. This ensures high returns on your investment.
4. Partial Withdrawal
You can withdraw up to 50% of your total PPF savings after seven years from the year of opening of the account.
5. Loan Available
Get a loan of up to 25%, subject to conditions.
6. Low Minimum Investment Amount
You can start your investment with just ₹500 per year.
Final Word
Public Provident Fund or PPF is a preferable investment method among investors primarily due to its long-term and risk-free returns, tax benefits, and attractive interest rates. Knowing how to open a PPF account and the related details will help you start investing in PPF in a hassle-free manner.
However, if you are looking for long-term investment options with a higher returns potential, we suggest that you consider investing in Navi Mutual Fund schemes that are flexible, liquid, technology-backed, easy-to-access, and extremely pocket-friendly. To start your mutual fund investment journey with just ₹10, download the Navi App today.
FAQs
The dates for PPF deposit are not specified, but it is best if you deposit between April 1 and April 5 of a financial year. If not possible, you can make the deposit by the 5th of every month to get the maximum benefits.
If the account holder turns 18 years old, the minor PPF account can be converted into a regular PPF account by submitting an application form and the required documents. The guardian can also submit the application form to convert the status of the account from minor to major.
PPF account allows partial or premature withdrawal before the maturity period. However, under certain terms and conditions, you can only make a 50% withdrawal of the available amount after the completion of 5 years.
Yes, you can reactivate an inactive PPF account by submitting an application to the bank or PO along with Rs. 50 penalty and a minimum deposit of Rs. 500 for each year. The bank or PO will process your request and activate the account.
If you are opening a PPF account in a post office, you must visit the PO. But if you are opening a PPF account in a bank, you can use the net banking facility for the same.
You can open a PPF account with a nominal amount of Rs.100. However, to keep your account active, you are required to deposit a minimum of Rs.500 every financial year. You can open a PPF account with as little as Rs. 100. The maximum PPF contribution in a financial year is capped at Rs.1.5 lakh.
Yes, 1% penalty fee is levied on the actual interest rate offered upon PPF account premature closure.
The PPF interest rate is fixed by the Government of India. Currently, it is 7.1%. Every bank must comply with it. However, the convenience of opening and maintaining a PPF account may vary. Some of the top banks that offer PPF are:
1. State Bank of India
2. HDFC Bank
3. Punjab National Bank
The minimum amount that you need to invest to start a PPF account is ₹500 per year.
An individual can have one PPF account in their name. However, if an individual is a legal guardian to more than one minor, they may be able to open one account on behalf of each minor.
Partial withdrawal is possible after the 7th year only. However, partial withdrawal is possible only once every year.
Disclaimer
This article is solely for educational purposes. Navi doesn't take any responsibility for the information or claims made in the blog.
