PPF Account
The National Savings Organisation launched the Public Provident Fund (PPF) scheme in 1968 to promote small savings and investments. This retirement savings scheme, introduced by the Government of India, aims to provide individuals with a secure post-retirement life.
Any Indian resident is eligible to open a PPF account, with only one account allowed per individual throughout the country. Accounts can be opened either through the post office or any bank. The interest rate applicable to a PPF account is determined and announced by the Ministry of Finance on a quarterly basis.
key points to note about a Public Provident Fund (PPF) account:
- The minimum deposit allowed is Rs. 500, while the maximum deposit permitted is Rs. 1.5 lakh in a financial year.
- A loan facility is available from the 3rd to the 6th financial year.
- Withdrawal is allowed every year starting from the 7th financial year.
- The account matures after completing fifteen complete financial years from the end of the year it was opened.
- After reaching maturity, it is possible to extend the account for multiple blocks of 5 years by making additional deposits. Once the account has matured, it can be kept indefinitely without any further deposits, with the prevailing interest rate being applied. The funds in the PPF account cannot be seized under any court order or decree. Deposits made to the account are eligible for deduction under Section 80C of the Income Tax Act. Additionally, any interest earned on the account is tax-free under Section 10 of the Income Tax Act.
- To open a PPF account, you have the option to do so at a Post Office or with a nationalised bank like State Bank of India or Punjab National Bank. Some private banks also have the authority to provide this service.
- To complete the account opening process, you will need to provide the following documents: a filled-out account opening application form, KYC documents such as Aadhaar, Voters ID, driver’s license, etc., proof of residential address, a nominee declaration form, and a passport size photograph.
Steps for Opening a PPF Account Online:
- Access your bank account by logging in to the banking website or mobile banking platform using your ID and password.
- Find the option to open a PPF Account and select it.
- Choose the appropriate account type: “Self Account” for opening the account for yourself or “Minor Account” for a minor.
- Complete the application form by providing the necessary information.
- Specify the total amount you plan to deposit in the account each financial year.
- Submit the application and wait for an OTP (One-Time Password) to be sent to your registered mobile number.
- Enter the OTP in the designated field to complete the application process.
- Once the application is approved, your PPF account will be created, and the account number will be displayed on the screen.
- You will also receive a confirmation email at your registered email