The Public Provident Fund (PPF) is a popular savings scheme that offers good returns along with tax benefits. This government-backed savings plan is a great option for investors seeking security, stability, and financial growth. Launched in 1968, this scheme provides tax benefits under Section 80C. In this article, we will share all the details on how you can invest just ₹500 and unlock benefits worth lakhs in this government scheme.
It Costs Just ₹500 to Open an Account
The Public Provident Fund (PPF) account requires a minimum deposit of ₹500 to open. The account has a tenure of 15 years, which can be extended in blocks of 5 years. The maximum annual deposit limit is ₹1.5 lakh in a financial year. The PPF scheme is a great option for long-term financial planning.
How to Open a PPF Account
Any Indian citizen can open a PPF account, and parents can also open one on behalf of their minor children. However, Non-Resident Indians (NRIs) and Hindu Undivided Families (HUFs) are not eligible. To open a PPF account, you will need a PPF account opening form, ID proof, address proof, passport-sized photograph, etc. PPF accounts can be opened both online and offline.
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— India Post Payments Bank (@IPPBOnline) April 9, 2020
Offline Account Opening Procedure:
- Visit a bank branch or post office and obtain the PPF account opening form.
- Fill in the required details on the form.
- Attach the necessary documents with the form.
- Submit the completed form and documents to the bank or post office representative.
- After submitting the documents and the initial deposit, you will receive a passbook for your PPF account.
Online Account Opening Procedure:
- Log in to your account on the internet banking or mobile banking platform.
- Select the ‘Open a PPF Account’ option.
- The online application form will appear on the screen. Fill it out and attach the necessary documents.
- Enter the deposit amount you plan to make every year.
- Verify your identity by entering the OTP sent to your registered mobile number.
- After applying, you will receive a confirmation email for account opening.