How to Open, Transfer or Close a PPF Account: Eligibility and Documents
PPF (Public Provident Fund) investments come with many benefits. You get to enjoy assured returns, high interest rates (current interest rate is 7.10%), tax-saving benefits and more. PPF is a near-perfect investment channel to build your retirement corpus. So, if you’re yet to invest in PPF, now is the time! Open a PPF account and start investing with as low as Rs.100. Wait…yet to have a PPF account? Don’t worry, this blog will guide you on how to open a PPF account and more. So, let’s dive in!
How to Open a PPF Account Online?
Follow the steps below to 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 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.
How to Open a PPF Account Offline?
Alternatively, you can also open a PPF account offline by following the steps below:
- 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.
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Documents Required to Open a PPF Account
The table below presents the documents that can be used for opening a PPF account and their purpose:
| Documents | Address Verification | Identity Verification | Signature Verification |
| PAN | No | Yes | Yes |
| Aadhaar | Yes | Yes | No |
| Passport | Yes | Yes | Yes |
| Voter ID | Yes | Yes | No |
| Driver’s licence | Yes | Yes | Yes |
| Credit/Debit card with photograph | No | Yes | Yes |
| Government Department/ Police ID/Defence ID Card | No | Yes | Yes |
| Recent postpaid phone/electricity/water bill, etc. | Yes | No | No |
| Employer’s letter certifying current mailing address | Yes | No | No |
| Recent stamped and registered home lease agreement | Yes | No | No |
| Ration card | Yes | No | No |
| Bank passbook/Credit card statement | Yes | No | No |
You would also need the following:
- Form A or PPF account opening form
- Form E or nominee form
- Payslip or a signed cheque of the bank account in favour of the PPF account
- For minors, birth certificates have to be submitted as legal age proof.
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.
Benefits of a PPF Account
There are plenty of benefits of having a PPF account. Here are some of them:
- Tax benefits of up to Rs.1.5 lakh under Section 80C of the Income Tax Act.
- Earn 7.1% interest on your investments.
- The calculation for PPF follows the compound interest method, which will significantly increase the total investment value.
- Lock-in period of 15 years but partial withdrawals can be made after 5 financial years.
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
- 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
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 bank or post office with the existing PPF account and fill out the relevant form for the transfer of your PPF account.
- Step 2: The 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.
- Step 3: Upon receiving the documents, the new bank will ask for the submission of the application form and the old passbook.
- Step 4: Check in a few days if the transferred PPF account shows up. If it does not, visit or contact the bank.
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How to Close a PPF Account?
You cannot close a PPF account before the maturity period of 15 years. However, partial or premature withdrawal of up to 50% is allowed upon completion of 5 financial years of staying invested. That said, you can choose premature closure of the account, which is allowed only under considerable circumstances.
Final Word
PPF is a preferable investment method among investors primarily due to its long-term and risk-free investment option with attractive interest rates. Knowing how to open a PPF account and the related details should help you start investing in PPF in a hassle-free manner.
FAQs
Ans: 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.
Ans: 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.
Ans: 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.
Ans: 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.
Ans: 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.
Ans: 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.
Ans: Yes, 1% penalty fee is levied on the actual interest rate offered upon PPF account premature closure.
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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.
