How to Open PPF Account Online: PPF (Public Provident Fund) is a government savings scheme, by investing in which you can keep your savings safe and also earn good interest. Its biggest feature is that both the interest and maturity amount received on it are tax-free.
How to Open PPF account Online: If you want to invest to get safe and guaranteed returns, then PPF (Public Provident Fund) can be a great option. The advantage of PPF is that you can open it online from home. Let us know how you can easily open a PPF account, who is eligible for it and how much interest is available on it.
1. What is a PPF account?
PPF (Public Provident Fund) is a government savings scheme, by investing in which you can keep your savings safe and also earn good interest. Its biggest feature is that both the interest and maturity amount received on it are tax-free. The investment period in this scheme is 15 years, which you can also extend.
2. Who can open a PPF Account? (Eligibility)
Indian citizens: Any Indian citizen can open a PPF account, whether he is an adult or a minor. For a minor, his/her parents or guardians can open the account.
NRIs: However, NRIs (Non-Resident Indians) are not allowed to open a PPF account. If they have already opened an account, they can continue it, but cannot open new accounts.
3. How to invest in PPF account?
You can invest a minimum of ₹500 and a maximum of ₹1.5 lakh in a year in a PPF account. This amount can be deposited at once or in multiple installments. If you invest up to Rs 1.5 lakh in a year, it also comes under the purview of tax exemption (80C), which can help you save income tax.
4. How much interest is available on PPF account?
The interest rate on PPF is determined by the government every quarter. Currently (2024-25), PPF gives around 7.1% annual interest, which is calculated on the basis of compounding. The specialty of this interest is that it is tax free, so that you get its full benefit.
5. How to open a PPF account from home?
If you have a bank account in a big government or private bank like SBI, HDFC, ICICI, or Bank of Baroda, then you can open a PPF account online from home. Know how here:
Follow the steps
Login to NetBanking: Login to your bank’s netbanking website or app.
Choose PPF account option: Go to the ‘Investment’ or ‘Services’ section and choose the option to open a PPF account.
Fill in the required details: Here you have to fill in your personal details and nominee details.
Submit digital documents: Upload required identity documents like Aadhaar card, PAN card.
Initial deposit: Deposit a minimum of ₹500 to open your account.
Get confirmation: Once the process is complete, you will receive a confirmation and your PPF account will be opened.
6. Maturity and withdrawal rules in PPF
The maturity period of PPF is 15 years. After this period, if you want, you can extend it for 5-5 years. You can withdraw the entire amount in PPF after 15 years. Apart from this, there is also an option of partial withdrawal after 7 years of opening a PPF account. If you need money in an emergency, you can also take a loan after the third year.
7. Benefits of PPF
Safe investment: It is a safe investment as it is guaranteed by the government.
Tax savings: Investment in it gets the benefit of tax exemption (80C).
Tax-free interest: Both the amount received on maturity and the interest are tax-free.
Loan facility: You can also take a loan on it after the third year.
