1. Public Provident Fund
Public Provident Fund (PPF) is a popular long-term investment option scheme. It is backed by the Government of India and also offers an attractive interest rate with ensured safety. These returns are fully exempted from tax under Section 80C of the Income Tax Act. Investors can look at saving tax in the range of Rs. 500 to a maximum Rs. 1,50,000 in one financial year, and can get added facilities such as loans against the deposit, partial withdrawal and the extension of your account.
PPF is a good alternative for self-employed people or for those who are from unorganized sectors since EPF/GPF is not available for them.
2. Product Features of the PPF
- Attractive interest rate of 8.0% that is fully exempted from income tax under section 80 C
- Good long-term investment of 15 years
- Your deposit amount can start as low as Rs.500 and go up to a maximum of Rs.1,50,000 in one financial year
- Deposits can be done in a maximum of 12 transactions
- A loan can be availed between the 3rd to the 6th financial year against your deposit
- Partial withdrawal facility can be availed from the 7th financial year onwards
- The account can be extended in a block period of 5 years after maturity
3. Opening a PPF Account
Usually, a PPF account can be easily opened in a designated post office or a bank branch. However, if you are an HDFC Bank customer, opening a PPF account is an even simpler a task that can be completed in only a few minutes without any hassle. HDFC customers can now open a PPF account online anytime, 24X7. HDFC Bank has announced the launch of a digital service that enables customers to open a Public Provident Fund (PPF) account instantly in a completely paperless manner, done entirely online.
An HDFC Bank customer has the option of opening a PPF account conveniently anytime, anywhere using the bank’s digital channels of internet banking or through the bank’s Mobile App.
4. Opening a PPF Account Online
Here is what you need as pre-requisites in order to open an instant PPF account online with HDFC Bank:
- You must be a Savings Bank account customer of HDFC Bank.
- You must have net-banking/Mobile banking enabled for your account.
- Your ‘Aadhaar’ number should be linked to your account.
- Your mobile number which is linked to your Aadhaar should be in active status, to receive the OTP (one time password) which is used to e-sign/e-authorize the opening of the PPF account instantly.
The process to open a PPF account
- Visit the HDFC Bank portal and log-in with your credentials.
- Click on ‘Public Provident Fund’ and select the ‘PPF Accounts ‘option.
- Select and click ‘Open Now’.
- Enter relevant details of the bank account number from which you would like to contribute to your PPF account and the PAN number. Provide the bank branch details.
- Your personal details need to be verified. These might include address, nomination data, etc. and then click on the ‘proceed’ button.
- In the next screen, your Aadhaar number will need to be verified. If your bank account is already linked to your Aadhaar, you can click on ‘Generate OTP’, else you will need to update your Aadhaar online.
- There is also an option to e-sign with the Aadhar OTP to open a PPF account online instantly.
- Once you do this, your PPF account is instantly created in a matter of seconds and the account number of your PPF is displayed instantly. It must be noted that the statement of transactions, as well as the annual statement of the PPF account, can be availed via internet banking.
5. Important Points to Note When Opening a PPF Account
- As per the Indian law, an individual is allowed to open only one PPF account in his/her name.
- Minimum deposit is Rs 100 as an initial deposit amount.
- A PPF account for Minors can’t be opened through online mode, you will need to visit any of the HDFC Bank branches.
- NRIs cannot open a PPF account.
- You can visit the nearest HDFC Bank branch and submit a request for nomination updating /change (if required).
- Joint-account holders cannot open a PPF account online.
- Customers need to visit the branch to get the passbook for their PPF account.
Similar Banks Offering PPF account
- Opening a PPF account in SBI
- Opening PPF Account in Post Office?
- Opening a PPF Account in ICICI Bank