PPF Account: How to Open, Check & Withdraw Balance?
Updated On Oct 09, 2021
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Have you been advised to start saving with the help of a PPF account? Are you considering a PPF account to be your ultimate investment? If so, know that a PPF account will not only help you save money, but also earn tax benefits. If interested, you can easily open an account, but only for yourself or your minor children. You will have complete freedom of investing as little as Rs. 500 or as much as Rs. 1.5 Lakh in a financial year as per your will. Having said that, are you ready to start this superior saving? Read along!
How to Open a PPF Account?
If you want to open a PPF account online, it would require you to have an account with one of the banks authorized to open a PPF account. Further, the steps, in general you would be required to follow include:
- Log in to your net banking portal.
- Choose ‘Open a PPF Account’.
- Choose ‘Self Account’ or ‘Minor Account’.
- Enter nominee details, bank details, etc., and other details.
- Verify details such as PAN and more.
- After verification, enter the amount you want to deposit in your PPF account.
- Set up instructions which will enable the bank to deduct the amount at fixed intervals or in a lump sum.
- An OTP will be sent on the mobile number you have provided.
- Once verification is over, your PPF account will be opened. Make sure the account number is saved for future reference.
How to Check PPF Account Balance?
Do you wish to check how much you have in your PPF account? You can do so either online or offline as per your preferred mode.
If you want to check your PPF balance online, log in to your PPF account. After you log in, your current PPF account balance will display on the screen.
Note that you can easily transfer funds to your account online, download your account statement, and do a lot more.
A bank authorized to open a PPF account provides a separate passbook for a PPF account. This passbook includes account balance, account number, bank branch details, credits or debits to your account, and more information. If you wish to check your current PPF balance, you can do so by simply updating this passbook.
To get your PPF passbook updated, all you need to do is visit the bank branch where you opened your PPF account. If you opened your PPF account through the Post Office, you can visit the post office for your passbook update.
How to Withdraw PPF Balance?
PPF accounts come with a 15-year lock-in period. But, the account holder has the permission to make partial withdrawals only if there is an emergency. They can be done after the 5th financial year, counting from the year in which the account is opened. Note that only one partial withdrawal is permitted per financial year.
The maximum amount that one can withdraw per financial year is the lower of the 50% of the account balance as at the end of the financial year or at the end of the 4th financial year before the withdrawal year.
Note that it is a must to submit the Form C to withdraw a partial amount from the PPF account.
- The form must include details like account number, amount of money to be withdrawn, etc.
- Submission of a declaration declaring that no other amounts were withdrawn during the same financial year is a must.
- In case, the account is in the name of the minor, an additional declaration showcasing that the amount is required for the use of a minor child (still a minor and alive) is required.
- The PPF passbook must also be submitted along with the form.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.