How to open a PPF account
Public Provident Fund accounts are a form of savings deposit accounts where one can deposit their savings and get it back after a fixed period of time along with the interests. The PPF scheme is one of the hugely popular and safe mode of investment plan opted by both lower income groups and higher income groups of the society. These accounts are easy to open, easy to operate, high yielding, no risk factor involved and smart investment plans. As these are totally Govt. owned schemes, almost anyone can open these accounts and get benefited.
From where, one can open and operate a PPF account
One can open the PPF accounts by simply visiting any post office or a branch of a nationalized bank. Overall, there are three modes of opening a new PPF account. One can visit a post office and ask for opening a PPF accounts. Post offices are easily accessible and are present in almost every area. Second is a bank from where one can open and operate the PPF accounts. Almost all major nationalized banks of India have the PPF account facility. The third option is online mode of opening and operating a PPF account that can be done from the websites of the nationalized banks.
Procedure to open a PPF account in a bank or post office
To open a new PPF account one will have to collect the PPF account opening form either from a nationalized bank or post office. Then the next step is filling up of the PPF form where one must provide the required details like name, address, initial deposit amount for opening new PPF account, signature, nomination details, etc. One must provide required documents along with the PPF form like proof of identity, proof of address, savings account number of the bank and a picture of the applicant. After filling the application form, it is to be submitted along with the desired amount of initial deposit in the account. On successful completion, a new account will be created.
Procedure to open a PPF account online
To open a new PPF account online, one must visit the website of any nationalized bank which offers the PPF scheme. Then go to the PPF section and select the link for opening a new PPF account. An online form will open which will have to be filled by providing relevant details. There also, one can pay the initial amount needed to open a new PPF account. This amount can be paid either by debit / credit card or through net banking. The PPF account can easily be operated online. One can transfer his / her future investments in the PPF account through online process and can administer the account online.
Few important details regarding a PPF account
|Sl. No.||Attributes||Regarding information|
|1||Tenure of account||15 years|
|2||Year of launch||1968|
|3||Present rate of Interest||8.7 % per annum|
|4||Tax on interest||Nil|
|5||Where to open PPF accounts||Banks, Post offices, Online|
|6||Minimum deposit per year||Rs. 500|
|7||Maximum deposit per year||Rs. 1,50,000|
|8||Number of deposits allowed per year||Up to 12 installments|
|10||Lock in period||7 years|