New Delhi: Public Provident Fund or PPF is one of the most sought-after investment instruments as it not only comes along with tax benefits but is also one of the safest forms of investment. Considering that the scheme is backed by the government, it is one of the most respected small savings schemes.
People often go for the PPF savings scheme as it comes along with EEE status—this means the interest earned on investment, interest earned, and maturity proceeds are all tax-free.
The traditional process of opening a PPF account involves going to a bank or through a post office but customers can also open the account online. Having said there, here are a few simple steps that you need to follow to get your PPF account up and running without even stepping out of your house:
It may be noted that online PPF opening facility is only limited to certain banks and their specified branches.
However, first, you have to ensure that you have a savings account with the bank and the subscriber also should have net banking enabled. While Aadhaar was also required to be linked, the Supreme Court’s recent decision to scrap Section 57 of the ACT may not attract an Aadhaar card.
How to open an account online?
If you meet all the above-mentioned criteria, you can then log on to the net banking portal and select the PPF account opening option. The individual or customer will then have to choose the account from where the contributions will be made. Worth mentioning that ideally, customers should link all personal details—already linked with the bank—to the PPF account.
While opening an online PPF mandated an Aadhaar, other government IDs may again be accepted now, following which your account can be opened.
Customers who open a PPF account should note that Rs 500 must be deposited in the account at the time of opening and the minimum amount one can submit is Rs 500 every year. The maximum contribution, however, can go up to Rs 1.5 lakh per year.