What is a PPF Account? How to Open a PPF Account?

Posted on Thursday, January 23rd, 2025 | By IndusInd Bank

Building a financially secure future requires smart planning and disciplined saving. A PPF account can be a useful option in this regard. The full form of PPF is Public Provident Fund. It is a government-backed savings scheme, offering an appealing option for long-term financial goals, especially retirement.  

Let’s learn more about what a PPF account is and how it can benefit you. 

What is a PPF Account? 

•  A Public Provident Fund account is a government-backed savings scheme open to the public. It aims to provide investors with long-term financial security.  

• PPF offers stable and guaranteed returns where the interest is compounded annually. The government sets the interest rates and reviews them every quarter.  

• The scheme has a minimum lock-in period of 15 years. The minimum annual deposit is ₹ 500, and the maximum is ₹ 1.5 lakh. 

• PPF account contributions are eligible for tax deductions under Section 80C of the Income Tax Act. Also, the interest earned and the maturity amount are exempt from tax. 

• You can make partial withdrawals from a PPF account from the 7^th financial year onwards. The investor can avail loans against their PPF balance from the 3^rd to the 6^th financial year. 

Now that you know what a PPF account is, let’s look at creating one.  

Eligibility Criteria and Documentation to Open a PPF Account

To know how to open a PPF account, check the eligibility criteria first: 

1. Only Indian residents can open a PPF account.  

2. There is no age restriction to open a PPF account. Minors can also have a PPF account managed by their guardians. 

3. An individual can have only one PPF account in their name. However, they can open a new account on the behalf of a minor.  

You will need the following documents for PPF account opening: 

1. Proof of Identity: Aadhaar card, PAN card, Passport, or Voter ID. 

2. Proof of Address: Utility bills, Aadhaar card, Passport, or Voter ID. 

3. Recent passport-sized photographs. 

4. Duly filled and signed PPF account opening form. 

5. A signed cheque or a pay-in slip (at the bank) to deposit money into the PPF account.  

6. Legal age proof, in case of minors.  

Now that the eligibility and documentation aspects are clear, let’s look at how to open a PPF account.  

Online Account Opening (for Participating Banks and Post Offices) 

Here’s how to open a PPF account online: 

1. Make sure you have a savings account with a participating bank or post office.  

2. Visit the website and navigate to the ‘Open PPF account’ section. 

3. Fill out the online application form and upload the necessary documents. 

4. Make the initial deposit. 

5. Set instructions for debiting money from your bank account to PPF.  

6. Submit the form and verify via OTP. 

Offline Account Opening (for Non-Participating Banks)

In case you have a bank account with a non-participating bank, you can open a PPF account offline. Here’s how you can do it: 

1. Visit a post office branch or a bank that offers PPF accounts. 

2. Obtain a PPF account opening form. 

3. Fill out the form. Attach the documents. 

4. Submit the completed form along with the initial deposit. 

Along with PPF, one must also look for the right savings accounts to park their money and grow it the right way.  

With IndusInd Bank, you can enjoy a range of savings solutions, from premium savings accounts with exclusive features to a convenient Zero-Balance Savings Account that can be opened in minutes. IndusInd Bank helps you give your money the growth it deserves.  

Also Read: Mastering the Art of Long-Term Savings- A Complete Roadmap for Financial Success 

Conclusion 

A Public Provident Fund account can be a powerful tool for building a secure financial future, especially for retirement. Its combination of guaranteed returns, tax benefits, and long-term growth makes it a wise choice for anyone looking to secure their financial well-being.  

To secure your financial future even further, make IndusInd Bank your banking partner and complement your PPF investments.  

Open a Savings Account online with IndusInd Bank today!  

 
Disclaimer: The information provided in this article is generic and for informational purposes only. It is not a substitute for specific advice in your circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information.