New Delhi: The Public Provident Fund (PPF) scheme was launched by the National Savings Organisation in 1968 to encourage small savings and investments. This retirement savings scheme, introduced by the Government of India, is designed to ensure a secure post-retirement life for individuals.
Any resident of India is eligible to open a PPF account. Only one account can be opened per individual throughout the country, either through the post office or any bank. The interest rate applicable to a PPF account is determined and notified by the Ministry of Finance every quarter.
Here Are The Key Points Regarding A Public Provident Fund (PPF) Account:
The minimum deposit allowed is Rs. 500, while the maximum deposit permitted is Rs. 1.5 lakh in a financial year.
A loan facility is available from the 3rd to the 6th financial year.
Withdrawal is permissible every year starting from the 7th financial year.
The account matures upon completing fifteen complete financial years from the end of the year it was opened.
After maturity, the account can be extended for any number of blocks of 5 years with further deposits.
The account can be retained indefinitely without further deposit after maturity, with the prevailing interest rate.
The amount in the PPF account is not subject to attachment under any court order or decree.
Deposits qualify for deduction under Section 80C of the Income Tax Act.
Interest earned in the account is tax-free under Section 10 of the Income Tax Act.
How To Open A PPF Account?
A PPF account can be opened either at a Post Office or with any nationalised bank such as the State Bank of India or Punjab National Bank.
Additionally, certain private banks, among others, are authorised to provide this facility nowadays.
You need to submit the below-mentioned documents:
Duly filled account opening application form
KYC documents such as Aadhaar, Voters ID, driver’s license, etc.
Residential address proof
Nominee declaration form
Passport size photograph
Steps To Opening A PPF Account Online:
Step 1: Log in to your bank account using your ID and password on the banking website or mobile banking platform.
Step 2: Select the option to ‘Open a PPF Account.’
Step 3: Choose the ‘Self Account’ option if you’re opening the account for yourself. For a minor account, select the ‘Minor Account’ option.
Step 4: Fill in the required information in the application form.
Step 4: Specify the total amount you wish to deposit in the account per financial year.
Step 5: After completing the previous steps, submit the application. An OTP will be sent to your registered mobile number, which you’ll need to enter in the relevant field.
Step 6: Your PPF account will then be created, and the account number will be displayed on the screen. Additionally, a confirmation email will be sent to your registered email address.