How to Open a PPF Account Online And Offline: Eligibility, Documents And How To Close A PPF Account

Investments

A PPF (Public Provident Fund) is a tax-saving investment vehicle that provides stable returns over a period of 15 years. With an interest rate of 7.1% p.a., it helps build a retirement fund along with tax-saving benefits under Section 80C. This blog guides you through the process of opening a PPF account and lists details such as eligibility criteria, benefits, documents required, how to transfer a PPF account from one bank to another and how to close a PPF account. 

Keep reading!

Eligibility Criteria for Opening a PPF Account

You have to satisfy these criteria to be able to open a PPF account. 

• You have to be a resident of India.
• You should have a savings account with the respective bank along with a net banking facility.
• You should have your Aadhaar number linked with your savings account and mobile number. 
• Minors are eligible to open a PPF account only with legal age proof. 

Note that if you are an NRI, you are not eligible for a PPF account, but if the account was opened before you became an NRI, you have to maintain the account for 15 years with no option for further extension. 

Documents Required to Open a PPF Account

• Form A or PPF account opening form
• Form E or nominee form
• Any identity proof, such as Aadhaar, PAN, voter ID, passport, driving license, etc. 
• Any address proof, such as Aadhaar, telephone or electricity bill, ration card, etc.
• Two passport photos 
• Payslip or a signed cheque of the bank account in favour of the PPF account

For minors, birth certificate has to be submitted as legal age proof.

How to Open PPF Account Online and Offline

One can open a PPF account via both online and offline methods. The process might vary slightly from one bank to another. The following are the ways in which you can open a PPF account. 

• Online 

Step 1: Log in to the net banking portal of your respective bank account. 

Step 2: You will find ‘Open a PPF account’; click on it. 

Step 3: Two options will be available. If the account is for yourself, choose ‘Self Account’ or choose ‘Minor Account’ if it is for a minor. 

Step 4: Fill in details as required and verify them before submission.

Step 5: Enter the amount you wish to deposit in a financial year. You can choose to set automatic instructions. For example, the amount to be deposited in your PPF account will be debited from your savings account and get transferred to your PPF account.

Step 6: After you submit the form, an OTP will be sent to your registered mobile number for verification and authorisation of the transaction. 

Step 7: Upon confirming the OTP, you will get a success mail to your email ID with all the details of your PPF account. 

• Offline 

Step 1: Fill out the PPF application form with all the details; don’t forget to cross-check the information.

Step 2: Provide necessary documents or copies of them as required. 

Step 3: Go to the respective branch of the bank or post office where you already have a savings account and want to open a PPF account. 

Step 4: Submit the form along with documents to a representative of the bank or post office. 

Where Can You Open a PPF Account?

As mentioned above, you can open a PPF account in a post office or a bank where you already have a savings account. Banks that provide PPF account services are listed below:

• HDFC bank
• ICICI bank
• Axis bank
• State Bank of India 
• 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 

Benefits of a PPF Account

There are some benefits of having a PPF account. They are as follows:

• You can avail a maximum tax deduction of Rs. 1.5 lakh by investing in PPF as per Section 80C of the Income Tax Act.
• PPF offers attractive interest rate at 7.1% p.a.
• The calculation for PPF follows the compound interest method, which will significantly increase the total investment value. 
• This scheme has various withdrawal facilities before maturity under plausible terms and conditions. 

Transfer PPF Accounts from One Bank to Another

You can transfer your PPF account if needed from one bank to another by following a few simple steps given below:

• Go to the bank or post office with the existing PPF account and fill out the relevant form for the transfer of your PPF account. 
• The approached bank will then submit the application form along with the nomination form, opening application, a demand draft or cheque of the available amount in the account, and a signature specimen to the new bank.
• Upon receiving the documents, the new bank will ask for the submission of the application form and the old passbook. 
• Check in a few days if the transferred PPF account shows up. If it does not, visit or contact the bank. 

How to Close a PPF Account

You cannot close a PPF account before the maturity period of 15 years is over. However, partial or premature withdrawal of up to 50% is allowed. That said, you can choose premature closure of the account, which is allowed only under considerable circumstances. 

Also Read: PPF Withdrawal Rules: How To Get The PPF Amount Before And On Maturity

Final Word

Being a long-term and risk-free investment option with attractive interest rates, PPF is a preferable investment method among investors. Knowing how to open a PPF account and the related details should help you make the right decision. 

FAQs on How to Open a PPF Account

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This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.