Public Provident Fund or PPF is one of the best ways to save money for the future. An individual, by contributing a small amount of money every year can get the principal amount along with the earned interest after maturity. It’s a saving cum long term investment instrument that encourages the saving habits of an individual.
There are two ways to open a PPF account– online and offline. In this blog, we will discuss both the ways to open a PPF account and a few things to take care of while opening a PPF account.
How to open a PPF account online?
Before opening a PPF account online, it is mandatory that the individual has an account with the bank and access to internet banking. Following are the steps to follow to open a PPF account; however, it is to be noted that the steps might slightly vary from one bank to another.
- Log in to the respective bank’s net banking portal
- Locate the option that will allow you to open a PPF account
- There might be an option for a self PPF account and a minor PPF account. Choose one from the available options
- Enter the required details like bank details along with mentioning the nominee too
- Next, enter the amount you wish to deposit in your PPF account
- Select whether you want the money to be deducted at fixed intervals or at one go
- Enter the OTP which is sent to your registered mobile number (this step might vary from bank to bank)
- Once the above-mentioned steps are completed, your PPF account will be created. Note the account number and other required details for future references
- There are banks that require an individual to submit the physical copies of all the supporting documents and details to be submitted for KYC purpose
How to open a PPF account offline?
It is easy to open a PPF account offline by following the given instructions-
- Visit your respective bank’s branch
- Connect with the banking personnel to open a PPF account
- Next, fill the PPF account opening form
- Submit all the required supporting documents and the amount for the PPF account
- Once the verification process is completed, your PPF account will be opened
Important things to take care of when opening a PPF account
The lock-in period of a PPF account is 15 years and an individual cannot withdraw the overall amount before maturity; thus, it is wise to take care of the following things before opening a PPF account-
- To open a PPF account, it is mandatory for the individual to have a savings account with the respective bank
- Netbanking facility should be accessible and activated
- It is mandatory to link Aadhaar card with the bank account
- Mobile number should be linked with the Aadhaar card to receive OTP and other important details
- The individual should be an Indian citizen
- The minimum deposit value to open a PPF account is Rs 500 whereas the maximum value is Rs 1.5 lakh
- NRIs are not given the opportunity to open a PPF account, however, individual who already had a PPF account before shifting to another country can still operate his/her PPF account
- Hindu Undivided Families cannot open a PPF account
- An individual who would want to open a PPF account should have only one account under his/her name
- Individuals can open a PPF account on behalf of their minor
Documents required to open a PPF account
Given below are the documents required to open a PPF account-
|Documents to open PPF account|
|PPF account opening form- Form A|
|KYC documents like Aadhaar card, PAN card, Voter ID card etc|
|Proof of Address|
|Passport size photograph|
|Nomination form- Form E|