Private Banks authorized to open PPF Account
PPF is a viable option for those looking for long term small saving investment. It can be opened in most of the nationalized banks, post offices and some of the private banks in India. Any Indian citizen can open a PPF account for themselves as well as for their dependents including minors.
Since it is a government backed scheme and offers a higher rate of interest, most people wonder if even private banks open PPF accounts or not. Well, the answer is that you can open a PPF account in some of the private banks that we are going to list below.
Before we mention the names of the private banks authorized to open PPF Account, we would like to clarify whether you can open and operate a PPF account in private banks or not. Here is the elaboration for it:
- You can very well open a PPF account in authorized private banks, just the way you can do it in public sector banks and post offices
- Your money would be safe even if you open your PPF account in the private banks and would grow at the same rate of interest
- Even if the authorized private banks close their operation, you can claim your money and government would ensure that you receive your PPF investment amount with the same rate of interest.
- There is no service charge for issuance of demand drafts on your total earning from PPF account in private sector banks after maturity
- The private sector bank cannot force you to open a saving account or any other financial product if you are opening a PPF account in them.
- They would certainly issue you a bank passbook and other account access services, similarly as you get it in the nationalized banks
- You would be able to extend your PPF investment tenure even after your amount matures after 15 years because this is a government backed scheme and private banks have to adhere to the governmental directions.
As a matter of fact, it is always safe and it does not matter whether you open your PPF account in a nationalized bank, a post office or a private sector bank as long as you are able to deal with day to day functioning of the account.
As of now, only three private sector banks are authorized to open and operate PPF accounts and those are:
- ICICI Bank
- Axis Bank
- HDFC Bank
We hope that government would authorize other private banks to open PPF accounts in times to come.