How To Open A PPF Account?

The Public Provident Fund programme was introduced in 1968 by the National Savings Organisation. The goal of this campaign was to encourage common people to make little investments and saves. This programme is becoming a well-liked savings strategy in India.

As a government-backed savings programme, PPF offers its members guaranteed returns. Furthermore, by not being market-linked, it protects investors' financial demands. As a result, individuals who are low-risk takers yet like a diverse investment portfolio might consider the PPF programme. To know more about how to open a PPF account, read on.

How Can A Person Open A PPF Account?

A PPF account can be opened offline or online. Although each institution has a different approach, the general idea is the same. Following are the listed things required by a person to open an account - 

1. Identity documentation such as an Aadhaar card, PAN card, voter ID card, passport, or driver's licence
2. Address verification documents like an Aadhaar card, ration card, phone bill, or electric bill
3. Two images of the applicant in passport size
4. Pay in slip or a signed check (when opening an account offline with a bank)

How Can A Person Open A PPF Account Online?

A savings account with a partnering bank is required in order to create a PPF account online. Additionally, for the same, this bank must offer online banking or mobile banking services. Following are the listed steps through a person can open a account online - 

1. Use the bank's internet banking or mobile banking interface to access your online account.
2. Choose "Open a PPF Account" from the menu.
3. Now look for and choose the "Self Account" option.
4. Fill up an application by providing the necessary information. Before submitting, double-check all of the information.
5. Indicate the sum you intend to contribute annually to your PPF account.
6. You may also create recurring instructions here to automatically transfer this sum out of your savings account and then into the PPF account.
7. After careful consideration, please submit this application. An OTP will then be sent to the registered cellphone number you provided. To validate your identity and approve this transaction, submit it.
8. A screen message and email confirming the establishment of your account will be sent to you.

How Can A Person Open A PPF Account Offline?

Following are the listed steps through a person can open a account offline - 

1. Prior to setting up a PPF account, be sure to gather all the necessary paperwork. It is also preferable if you already have a savings account with the bank in order to create a PPF account quickly.
2. Go to your bank's neighbourhood branch.
3. The bank employee will ask you to complete an application form.
4. Complete this form properly, then send it with the necessary PPF account documentation.

What Are The Features Under A PPF Account?

Following are the features under a PPF Account -

1. A deposit can be made for as little as Rs. 500 or as much as Rs. 1.5 lakh in a single year.
2. Deposits may be made in one single sum or up to 12 equal monthly payments over the course of a year.
3. The plan has a 15-year lifespan.
4. Any contributions made to the account are eligible for tax advantages under Section 80C of the Income Tax Act.
5. By using the netbanking feature, people would be able to read the statement and access numerous PPF data.
6. All banks currently provide a PPF interest rate of 7.1%.
7. Loans may be obtained even against PPF accounts after a specified amount of time.

Endnotes

Customers may now open a PPF account from any location at any time thanks to the introduction of digital banking services. You may start a PPF account entirely online, without completing any paper documentation.

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