How to Open PPF Account Online and Offline

Open PPF Account Online

Post-retirement planning is crucial for living a good life. In many cases, people forget to plan things and save money for their future. In order to make future investments secure and safe, the Indian Government assures the people through its PPF account opening scheme. The Public Provident Fund, also known as PPF, is a famous investment product to create long-term wealth. 

There are many banks that offer to open PPF account online as well as offline across the country. However, there are a few preconditions like a savings account in the same bank, net banking facility, and more that needs to be fulfilled.  

In this article, let us walk you through the ways to open a PPF account online, offline, its features, eligibility criteria, banks offering PPF account opening services and more in detail.

What is a Public Provident Fund Scheme Account (PPF)?

A PPF account is a Public Provident Fund scheme account for long-term-saving purposes as an investment option. It is opted for by the people for its safety, tax savings and returns. 

The scheme of PPF was first introduced and offered in 1968 under the National Savings Institute of the Finance Ministry of India. Since then, the PPF has become a strong tool for safe and secure investment for long-term wealth. Being the Indian Government the guarantor of the PPF account, it is one of the safest investments. Also, the government of India decides the PPF interest rate on the account every quarter to make it a better investment product. 

Process to Open a PPF Account Online

Before one plans to open PPF account online, they must have a savings account in that bank along with access to a net banking facility. If one has these requirements fulfilled, they can open a PPF account online by following the steps below:

Step 1: Log in to the net banking portal of the bank you wish to open a PPF account online in.

Step 2: Find the option/menu that takes you to the PPF account opening page. 

Step 3: Click on the options that apply from the ‘Minor PPF account’ and ‘Self PPF account’ opening. 

Step 4: In the following screen, enter the information asked by the portal like the details of the bank account, the name of the nominees, and more. 

Step 5: Enter the total amount that you wish to deposit in the account at the time of opening.

Step 6: Next, select whether you want the money to be deducted at once or at regular intervals and click on the ‘Proceed’ or ‘Submit’ button. 

Step 7: Next, enter the ‘OTP’ sent on the registered mobile number linked with the Aadhaar card. (This step is likely to be different for every bank). 

Step 8: After entering all the details, a PPF account will be created by the bank. Take note of the bank account number and other information of the PPF account for future reference. 

Some banks may also ask the user to submit physical copies of documents for completing the KYC verification to open a PPF account online.  

Process to Open a PPF Account Offline

Here are the steps to open a PPF account offline:

Step 1: Visit the bank in which you want to open a PPF account (the bank should already have savings account for the user).

Step 2: Ask for the PPF form and fill it with accurate information. 

Step 3: Attach all the required documents for PPF account opening, along with the initial deposit amount.

Step 4: After the completion of the verification process, the PPF account will be opened by the respective bank. 

Features of PPF Account

PPF Account has some prominent features which are mentioned below:

  • The minimum deposit that can be made after PPF account opening is ₹ 500 per annum.
  • The maximum deposit amount that one can contribute to their PPF account is ₹ 1.5 lakhs per annum.
  • The lock-in period/duration of a PPF account is 15 years.
  • Tax benefits of amounts up to ₹ 1.5 lakhs can be availed by contributing to the account under section 80 C of the Income Tax Act, 1961.  
  • The users get access to the details of the PPF account through the net banking facility of the bank in which their account is. 
  • Currently, under the PPF updates, a 7.1% interest rate is offered on all accounts. 
  • After a specific time period, people can also avail loans against their PPF accounts. 

Pre-conditions to Open a PPF Account Online

Here are a few prerequisites that one needs to fulfil before opening a PPF account online:

  • Operating savings account where they want to open a PPF account.
  • Activated net banking facilities.
  • Aadhaar details linked to the savings bank account.
  • The mobile number at the respective bank is linked to the Aadhaar number and user’s savings account.

Eligibility for PPF Account Opening

After the PPF account opening, the deposit will be locked in for 15 years and an individual can not take out the whole amount before maturity. Thus, below are the conditions that one should consider before going for a PPF account:

  • The individuals should have savings account in the same bank they are planning to open PPF account online/offline. 
  • The net banking facility of the user should be activated and accessed. 
  • It is required to link the Aadhaar card with their respective bank account.
  • The person should be a citizen of India.
  • The mobile number linked to Aadhaar should be working in order to receive OTP and other details related to the account.
  • NRIs are not allowed by the government for PPF account opening. But those who already have a PPF account prior to moving abroad can continue making deposits and use the same. 
  • Hindu Undivided Families (HUFs) are not allowed to open a PPF account.
  • An individual can only have one PPF account opened in his/her name. 
  • Citizens of India can also open a PPF account for their minor-aged children. 

Documents Required to Open A PPF Account

The list of documents required to open a PPF account are as follows:

  • Form A – PPF account opening form
  • KYC-related documents (Aadhaar, Voter ID, and others)
  • Address proof of the applicant
  • Passport-sized photographs of the applicant
  • Form of Nomination (Form E)
  • PAN Card

List of Banks Offering PPF Account in India

Here is the list of banks that offers PPF account opening services all around India.

Indian Overseas Bank Axis Bank State Bank of India IDBI Bank
ICICI Bank Bank of Baroda Punjab National Bank Corporation Bank
Oriental Bank of Commerce Bank of India State Bank of Bikaner & Jaipur State Bank of Hyderabad
Allahabad Bank Central Bank of India Canara Bank Union Bank of India
Indian Bank United Bank of India Dena Bank Vijaya Bank
Bank of Maharashtra State Bank of Patiala State Bank of Travancore State Bank of Mysore

In Conclusion

PPF account opening can be beneficial for an individual. This account gives security for the citizens of India to keep themselves prepared for the post-retirement stage in their lives. The people also avail tax benefits on the account. In order to open PPF account online or offline, a few prerequisites are needed to be completed. The mentioned information above can help an individual to open their PPF account easily.

Frequently Asked Questions (FAQs)

Which Banks offer PPF Account Opening Online?

HDFC Bank, SBI Bank, Axis Bank, ICICI Bank, and Bank of Baroda are some of the banks in India that offer to open PPF accounts online.

Is The PPF Account Opening Available in Every Bank?

The majority of the banks in India offer to open a PPF account online or offline, such as SBI Bank, ICICI Bank, HDFC Bank, UBI Bank, Bank of Baroda and many more.

Is a PPF Account a Good Choice?

PPF account is a small saving and secured account that helps you to guarantee a secured post-retirement life, making it one of the best choices for investment.

What is The Rate of Interest for PPF Accounts?

As per the current updates of the Public Provident Fund (PPF), the rate of interest applicable on the account is 7.1% on a compound annual basis.

Can The Husband Deposit Money Instead of The Wife in Her PPF Account?

Yes, the husband can deposit money into his wife’s account. This helps in maximising the benefits of post-retirement savings for the couple. This can also help them to deposit ₹ 3 lakhs per annum in the PPF account (₹ 1.5 lakhs in the husband’s account and ₹ 1.5 lakhs in the wife’s account.).

Can I Open two PPF Accounts Online/Offline?

As per the rules of PPF, not more than one account can be opened by an individual. Therefore, no one is liable to open 2 PPF accounts at the same time.

What are The Benefits of a PPF Account Opening?

A PPF account is a scheme for a retirement savings account by the Indian government. As a result, this account ensures a secured post-retirement life for the people, making it one of the best benefits to avail of after retirement.

What is a Better Option Between an FD Account or a PPF Account?

If one opts for a tax-saving fixed deposit (FD), it will be locked in for a minimum of 5 years. The lock-in period of a PPF account is longer compared to an FD. However, FD accounts possess some risks and the interest earned is also taxable. Considering all the factors, a PPF account opening is a better choice than an FD account.

Bhavya Mishra Bhavya is a content writer who adores every aspect of writing. She aims to reach her creative goals one day at a time. She is a writer in the day and a reader in the night.
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