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!
Follow the steps below to open a PPF account online:
Alternatively, you can also open a PPF account offline by following the steps below:
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|
|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|
|Bank passbook/Credit card statement||Yes||No||No|
You would also need the following:
You have to satisfy these criteria to be able to open a PPF account.
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.
There are plenty of benefits of having a PPF account. Here are some of them:
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:
You can transfer your PPF account if needed from one bank to another by following a few simple steps given below:
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.
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.
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.
Disclaimer: Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.
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.
What is Sortino Ratio – Formula and Calculations with ExamplesSortino ratio is a statistical tool that helps measure an investment’s performance during a downw... Read More »
What is Forfaiting – Benefits and Process with StepsForfaiting is a financial process involving the management of finance exports. It aids businesses b... Read More »
EPF Interest Rate 2022-23Employee Provident Fund or EPF has been popular among salaried individuals for a long time now. It ... Read More »
What is an Affidavit – Features, Types, Format and SampleAn affidavit is a sworn written statement, made especially under affirmation or oath befo... Read More »
What is Employee Stock Ownership Plan (ESOP): Scheme, Benefits, Taxation and TypesMost Indian companies, especially startups, offer a plethora of employee benefit plans in a bid to ... Read More »
Sukanya Samriddhi Yojana: Bank Interest Rates and How to Open One?Honourable Prime Minister Narendra Modi launched Sukanya Samriddhi Yojana as an important part of t... Read More »
What is a Prospectus – Working, Types and Use in Mutual FundsA prospectus is a legal document disclosing information regarding a public company seeking to raise... Read More »
A Step-by-Step Guide to UAN Generation and Activation ProcessThe Employee Provident Fund Organisation (EPFO) assigns a unique 12-digit number or UAN (Universal ... Read More »
EPF Vs PPF – Difference, Taxation and Where to InvestEmployees Provident Fund (EPF) and Public Provident Fund (PPF) are two of the most popular long-ter... Read More »
What is Systematic Risk and How can an Investor Control?Systematic risk refers to the inherent uncertainty that is present in all investments and is not sp... Read More »
6 Different Types of ESOPs – Employee Stock Ownership PlansEmployee Stock Ownership Plans, or ESOPs, are a type of equity financing that allows employees to o... Read More »
All information is subject to specific conditions | © 2023 Navi Technologies Ltd. All rights are reserved.