A PPF or a Public Provident Fund is a Government of India
backed long term investment scheme that offers high interest and good returns
with safety, PPF is a trendy scheme opened in almost all big companies for
their employees. Individuals investing in the PPF account get the profits that
are exempted from tax. A PPF account can be opened in banks and authorised post
office branches. Today, the intervention of the internet has made it much
easier than you can open a PPF account online.
Steps for opening a PPF account online
Login to your net banking website
Click on the option ‘Open a new PPF
account.’
Certain banks will provide an option to choose from
self-account and a minor account while some banks will not.
Start creating the account by entering the account holder
and bank details.
Once the details have been entered, you must enter the
amount that you wish to deposit in the PPF account.
You can provide a standing instruction to the bank to set up
automatic credit from your salary or personal account to the PPF account.
An OTP gets sent to your registered mobile number, which you
must enter on the webpage.
Once the above step is done, your PPF account is
created.
The MUST have for PPF account opening
The investor must have a savings account with the respective
bank.
Net banking or mobile banking must be activated.
The Aadhaar number must be linked to the savings
account.
The mobile number must be linked to the Aadhaar number and
bank as well.
Eligibility criteria for opening a PPF account – both
online and offline
Any Indian citizen can open the PPF account.
Individuals can open a PPF account on behalf of a minor.
Hindu Undivided Families (HUFs) cannot open a PPF
account.
In case an NRI has opened an account while he/ she was an
Indian resident can continue with the account for 15 years. NRI’s do not have
the option of extending the account.
The benefits of having a PPF account
The minimum amount required to deposit for a PPF account in
a year is INR 500, and the maximum amount is INR 1.5 lakh, respectively.
The duration of the PPF scheme is 15 years.
The deposits can be made as a lump sum or monthly
instalments.
Using the net banking facility, the investor can view the
PPF statement monthly or quarterly.
The interest rate offered for PPF account by banks is at an
average of 7.9-8 per cent.
After a specific duration, the PPF account can be used to
avail of loans.
As per Section 80C, tax benefits of up to INR 1.5 lakh are
provided for any contributions done towards the account.
Bottom Line: You can also check how much amount you
need to deposit monthly to a PPF amount and how much you get in return using
the PPF calculator. By investing in such Govt. Initiated schemes, the residents
are encouraged to promote savings.
