How To Open PPF Account Online

A public provident fund is a popular investment scheme among investors who want to earn high and stable returns. 

Features such as low minimum investment, multiple investor-friendly, and associated benefits make it suitable for individuals who are cautious about investments or those who want to grow their wealth over time.

What Is PPF Account?

PPF or Public Provident Fund is an investment option under which one can invest on a long-term basis, earning interest on the amount invested. 

One can open a PPF account with any bank or post office and deposit money under this scheme. The amount deposited during a year will be claimed tax-free under section 80C deductions.

How To Open PPF Account Online?

You can open a PPF account at a post office or any nationalized bank. Even some private banks these days, including ICICI, HDFC, and Axis Bank, are authorized to offer this facility.

Follow these steps to open PPF account online easily. 

Step 1: Log into your bank account using net banking or mobile banking

Step 2: Choose the ‘Open a PPF Account’ option.

Step 3: Enter your details on the next screen and the amount you wish to deposit

Step 4: Choose whether you wish to add a nominee and provide their details

Step 5: Agree to the terms and conditions, and enter the captcha before submitting the form

How to open a PPF account offline?

To open a PPF account offline, visit your nearest post office. Here is a step-by-step guide-

• Visit your nearest post office or sub-post office to obtain an application form.

• Submit the form along with KYC documents and a passport-sized photograph.

• In order to open a post office PPF account, you must make an initial deposit of Rs. 500.

• Following the submission of all the required documents as well as the initial deposit, the applicant will receive a PPF passbook.

• The passbook will include information such as the account holder's name, PPF account number, balance, branch name, and more.

These steps can also be replicated at a bank that offers this service.

What Are The  Required Documents To Open A PPF Account?

To open a PPF account, you need to submit the following documents.

• Application form for opening an account

• Identity proof such as Aadhaar, PAN, passport, etc

• Proof of Address

• Signature

• Passport sized photographs (in some cases)

• Nominee declaration form(only if you chose a nominee for your account) 

What Is The Eligibility Criteria For Opening PPF Account Online?

To open a PPF Account,

• The individual must be an Indian citizen

• Only one account per individual is allowed unless the second account is under the name of a minor

NRIs and HUF are not allowed to open a PPF account.

Features of the PPF account

The main features of the PPF account are:

• Currently, the PPF interest rate stands at 7.1%.

• You can make a minimum deposit of Rs.500 and a maximum deposit of Rs.1.10 Lakhs in a year.

• Depending on the amount of the deposit, it can be made as a lump sum or in 12 installments over the course of the year.

• This scheme lasts for 15 years.

• Upon maturity, you can also extend the account tenure for several years.

• Tax benefits of up to Rs.1.10 Lakhs are available for contributions toward the account under Section 80C of the Income Tax Act.

• The net banking feature will allow users to view the statement and access various PPF details.

• Loans may be obtained against the PPF account after a specified amount of time.

• Individuals must link their bank account to aadhaar card to activate their PPF account.

A Public Provident Fund (PPF) is an excellent investment for individuals with a low risk tolerance. Since it is mandated by the government, this plan offers guaranteed returns to protect the financial needs of the masses in India. Furthermore, investments made in PPF-mandated accounts are not tied to the market.  Investors can also use this plan to diversify their financial and investment portfolios.