PPF Account: How to Open Public Provident Fund Account Online?

Public Provident Fund Account

You know how to open PPF Account online? PPF scheme was introduced by the Ministry of Finance in the year 1968. It is one of the most effective tax-saving schemes which have been introduced by the Government of India. Deposits made in this account and the interests earned on deposit are non-taxable, these are some of the major attributes of PF which attracts people to save money in the PF accounts.

It has also been made mandatory for employers to follow the EPF registration scheme, wherein both employees and employers are expected to make some contributions during its tenure.

PPF Account

How to Open a PPF Account?

Traditionally, PPF accounts were opened in post offices, but now it can be opened in any bank or branch through online portal or by visiting the bank. One can open the PPF account at minimum 100 INR and total deposit of minimum 500 INR every year.

  • At post office or bank: Account can be opened by visiting post office or bank branch. You need to fill and submit the form with required documents. While opening the account you shall be required to make an initial minimum deposit into the account.
  • Online: PPF account can also be opened online by visiting bank official website. By opening your bank account, you can save a lot of time, travel cost and effort. It also gives you an option to link your savings account with PF account such that online fund transfer and viewing account statement can be done easily.

What do you Understand by PPF Account?

According to the recent amendments made in the Union Budget 2016, interest rates for PPF for FY 2016-2017 has been revised to 8.1%. People can deposit funds in PPF account for fixed duration of time and get returns on savings.Public Provident Fund Account

Minimum deposit kept for opening PPF account is quite low, the reason behind the same is to encourage individuals to make savings and have a secured future. The application method and rules of PPF are quite simple to understand, easily accessible and also a necessity for all across India. For individuals who have taken the decision of investing in PPF, they can open the account in authorized banks and branches of both public and private banks. For opening the account, an individual is required to fill in the required form and submit key documents.

Key Features of the PPF Scheme

Before individuals apply to the PPF scheme it is essential that they understand what is it all about and what features are available in the scheme;

  • Interest rates: Interest rates are compounded annually and currently fixed at 8.1%
  • Tenure: PPF has a locking period of five years after which it gets matured and requires renewal.
  • Initial Deposit: 100 INR to open account
  • Annual Deposit: 500 to 1.5 Lakh P.A
  • Deposit frequency: Money can be deposited every year for fifteen years in order to keep account active. Failure will make the account inactive.
  • Deposit modes: One time deposit or up to twelve installments through online transfer, DD, cash or cheque.
  • Withdrawals: Premature withdrawal can be made every year from seven years and withdrawal is subjected to conditions.
  • Tax benefits: Interests are tax free and also deposited amount is exempted.
  • Fund transfer: Cannot transfer funds easily between bank branches and post offices for free.

PPF Scheme Account Rules and Regulations

There are various rules and regulations that people need to follow while applying for PPF scheme. The rules pertain to eligibility, document requirement, maintenance, operation, opening account including loan, withdrawals, closure, extension of account etc. Also  you can know how to check PF balance online or offline. Let’s get an insight into each PPF rule separately.

Eligibility – Who can Open a PPF Account?

  • One PPF account can be opened by one person. There is no upper limit for opening the account. You need to be 18 years old to open PPF account.
  • PPF Account can also be opened for minors and maximum limit for them is 1.5 Lac per annum.
  • NRI cannot open a sPPF account. Account holders who have left the country can still continue their account until it matures for 15 years.
  • HUFs and foreigners cannot open PPF account.

Documents Required for Opening a Public Provident Fund Account

There are certain necessary documents that are required to open PPF account. These documents are KYC documents which include address proof, ID proof and signature proof. Some of the key documents include:

  • Passport, PAN card, Aaadhar Card, DL (driving license), Voter ID, Employer’s letter, Rental/lease agreement, Bank account statement, Signed cheque, ration cards, Utility Bill, Photographs
  • Account opening form is required to be filled where it is important to enter nominee details as well. This is not an exhaustive list and banks may request additional documents in case you are opening account for minor. In case of minor, the authority might request you to submit a birth certificate or school certificate of the minor.

Hope you understand all the details of PPF account details and its procedure. There are EPF related information shared at our website like how to login EPFO member portal, EPFO rules, Pay EPF challan, etc.

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