Opening a PPF account in HDFC

A PPF account can be opened by an adult for self or on behalf of a minor. The account tenure is 15 years and the lock-in period for the account is 15 years. You can make a deposit to a PPF account ranging from Rs.500 up to Rs.1.5 lakh per financial year.

The deposit can be made in a lump sum or in instalments. There is no restriction on the number of instalments per financial year. The deposits must be made every financial year during the tenure and such deposits are exempt from income tax u/s 80C.

You are required to make a minimum deposit of Rs.500 per financial year to keep the account active. If you fail to make this deposit, the account will be discontinued. You will have to pay a penalty of Rs.50 along with a minimum deposit of Rs.500 to reactivate the account.

An interest rate of 7.1% p.a. (Q1 FY2024-25) is applied to the deposit and compounded annually. A loan facility is available on the PPF balance. Subject to certain conditions, you can also make partial and premature withdrawals from the PPF account. Upon completing the tenure, you can choose to extend the account with or without making additional contributions. You also have the option to close the account.

When you open a PPF account offline, the bank or Post Office will provide you with a passbook. The passbook contains all the necessary information about the PPF account, such as the PPF account number, bank/PO branch details, account balance, transactions made in the account, etc. You can get the passbook updated regularly to access the latest data.

On the other hand, you can log into your account on the internet banking portal. On the home page, choose the PPF account to see the account details, such as the account number, account balance, recent transactions, and others.

You can open a PPF account either at the Post Office branch nearest to you or at a participating bank branch based on your convenience. The participating banks that offer a PPF account are given below.

• Bank of Baroda
• HDFC Bank
• ICICI Bank
• Axis Bank
• Kotak Mahindra Bank
• State Bank of India
• Bank of India
• Union Bank of India
• Oriental Bank of Commerce
• IDBI Bank
• Punjab National Bank
• Central Bank of India
• Bank of Maharashtra
• Dena Bank

PPF accounts are offered by the Government of India and are not specific to a bank. Also, all banks provide the same set of features and benefits when you open a PPF account. The interest rate is set by the government and it remains the same wherever the PPF account is held. Therefore, there is no best bank that offers a PPF account.

• Step 1: Log into your bank account on the internet banking or mobile banking platform.
• Step 2: Select the ‘Open a PPF Account’ option.
• Step 3: If the account is for self, click on the ‘Self Account’ option. If you are opening the account on behalf of a minor, select the ‘Minor Account’ option.
• Step 4: Enter the relevant details in the application form.
• Step 5: Key-in the total amount you want to deposit in the account per financial year.
• Step 6: Submit the application. An OTP will be sent to the registered mobile number. Enter it in the relevant field.
• Step 7: Your PPF account will get created in an instant! Your PPF account number will be displayed on the screen. An email will be sent to your registered email address with all the details confirming the same.

• Step 1: Get an application form from your nearest post office or online.
• Step 2: Fill up the form and submit it with the required KYC documents and passport size photograph.
• Step 3: Make the initial deposit required to open a post office PPF account. The amount can range from Rs.500 up to Rs.1.5 lakh per financial year.
• Step 4: Once your application is processed, a passbook will be given to you for the PPF account opened.

Any resident Indian adult can open a PPF account. In the case of a minor or a person with an unsound mind, a legal guardian can open the account on their behalf.

• Step 1: Fill in Form C with relevant details. You can download this from your bank or Post Office website or at the branch.
• Step 2: Submit the form to the bank or Post Office branch where your PPF account is held.

• Step 1: Log in to your internet banking account.
• Step 2: Open the PPF account details to check the latest PPF balance and the recent transaction details.

• Step 1: Log in to your internet banking account.
• Step 2: Open the PPF account details to check the latest PPF balance and the recent transaction details.

The minimum lock-in period for a PPF account is 15 years, the actual tenure of the PPF account.

An individual can open only one PPF account across the country.

A PPF account can be extended in the blocks of five years any number of times upon the maturity of the account after 15 years from the date of opening the account.

PPF account can be extended any number of times without any restrictions.

There is no specific due date as to when you should deposit money in a PPF account. However, it is beneficial for you to deposit money between 1 April and 5 April of a financial year. If you can’t make the full year’s deposit at the beginning of the year, you can make monthly deposits within the 5th of the month to earn maximum benefits.

• Step 1: Check if you are eligible for premature withdrawal.
• Step 2: If you are eligible, get Form C from the bank or Post Office and fill it up with relevant details.
• Step 3: If the account is in the name of a minor, you will have to provide an additional declaration stating the money you are withdrawing is for the sake of the minor and that the minor is alive.
• Step 4: Submit the form and any supporting documents to the bank or Post Office branch.
• Step 5: If all the information and documents you have provided are satisfactory, the bank or PO will process it and release the payment.

You can withdraw the money partially after completing five years from the date of opening the account. However, you can only withdraw up to 50% of the total account balance at the end of the fourth year from the date of opening.

When a minor PPF account holder becomes a major or turns 18 years old, you can submit a revised application form along with necessary documents stating the age of the account holder to change the status of the account from minor to major. The guardian can submit the application along with the account holder’s signature on the application form as an attestation.

As per the rules governing PPF accounts, you can fully withdraw your PPF account balance only after the account completes its tenure of 15 years. Upon completion of the 15-year term, you can access the entire account balance, withdraw it fully, and close the account.

Any time before completing the full tenure of the account, you cannot withdraw the entire account balance under any circumstances. However, premature withdrawal of up to 50% of the account balance is allowed after completing 5 years. This is permitted under special circumstances only.

You can close a PPF account after completing 15 years from the date of opening the account. The procedure to close a PPF account in the post office is given below:

Step 1: Fill up the relevant information in Form C and attach your PPF passbook.

Step 2: Submit this to the relevant Post Office/bank branch where the account is held.

Step 3: Your application will be processed and the account will be closed. You will receive the payment in your savings account linked to the PPF account.

You can transfer your PPF account to another branch of the bank/Post Office, switch from bank to Post Office, or switch from Post Office to a bank. Here is the procedure.

• Step 1: Visit the bank or Post Office branch where your PPF account is held.
• Step 2: Request for the application form to transfer the PPF account and fill it up with the relevant details.
• Step 3: The branch representative will process your application and forward it along with the certified copy of the account, nomination form, account opening application, specimen signature, and the cheque/DD for the outstanding balance of the PPF account to the new branch.
• Step 4: Once the new branch receives your application and supporting documents, you have to submit a new PPF account opening application along with the old PPF account’s passbook. You may change the nominee at this point.
• Step 5: Once this application is processed, your PPF account is successfully transferred to the new branch.

In order to reactivate an inactive PPF account, you can follow the steps below:

• Step 1: Submit a written letter to the bank or PO branch requesting to reactivate it.
• Step 2: Pay a minimum amount of Rs.500 for each year you have not made any contributions along with the penalty of Rs.50 per inactive year.
• Step 3: The bank or PO will process your request and reactivate the account.

You can close a PPF account after completing 15 years from the date of opening the account. The procedure is given below.

• Step 1: Fill up the relevant information in Form C and attach your PPF passbook.
• Step 2: Submit this to the relevant Post Office branch where the account is held.
• Step 3: Your application will be processed and the account will be closed. You will receive the payment in your savings account linked to the PPF account.