PPF or Public Provident Fund is one of the best ways to save for the future. An individual can receive the principal amount as well as the earned interest after maturity by contributing a small amount of money each year. It is a savings and long-term investment instrument that encourages an individual’s saving habits.
There are two ways to open a PPF account- online and offline. In this blog, we will go over both methods for opening a PPF account as well as a few things to keep in mind when doing so.
How to Open a PPF Account Online?
Before opening an online PPF account, the individual must have a bank account and access to internet banking. The steps to open a PPF account are as follows; however, it should be noted that the steps may differ slightly from one bank to the next.
- Log in to the respective bank’s net banking portal
- Find the option that allows you to open a PPF account
- A self PPF account and a minor PPF account may be available. Select one of the available options
- Enter the necessary information, such as bank account information, as well as the nominee’s name
- Following that, enter the amount you want to deposit into your PPF account
- Choose whether you want the money deducted at regular intervals or all at once
- Enter the one-time password (OTP) that was emailed to your registered mobile phone number (this step might vary from bank to bank)
- Your PPF account will be created once the preceding steps are completed. Make a note of the account number and other relevant information for future reference
- Some banks require an individual to submit physical copies of all supporting documents and information to be submitted for KYC purposes
How to Open a PPF Account Offline?
It is simple to open an offline PPF account by following the instructions-
- Visit your respective bank’s branch
- Connect with the banking personnel to open a PPF account
- Fill out the PPF account opening form next
- Submit all required supporting documents as well as the PPF account balance
- Your PPF account will be opened once the verification process is completed
Important Things to Take Care of When Opening a PPF Account
A PPF account has a 15-year lock-in period and an individual cannot withdraw the entire amount before maturity; thus, it is wise to consider the following factors before opening a PPF account:
- Individuals must have a savings account with the respective bank in order to open a PPF account
- Netbanking should be accessible and activated
- It is mandatory to link your Aadhaar card to your bank account
- To receive OTP and other important information, a mobile number must be linked to the Aadhaar card
- The person must be an Indian citizen
- The minimum deposit to open a PPF account is Rs 500, and the maximum deposit is Rs 1.5 lakh
- NRIs are not permitted to open a PPF account; however, individuals who had a PPF account prior to relocating to another country may continue to operate their PPF account
- Hindu Undivided Families cannot open a PPF account
- An individual who wishes to open a PPF account should only have one account in his or her name
- Individuals can open a PPF account for their minor children
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|