A great way of saving money is through this government scheme. The Public Provident Fund (PPF) is one of India's most popular schemes. The PPF scheme not only helps you save money, but it also deducts the payable income tax amount. One can open a PPF account and deposit only Rs 500 per year.
Anyone can deposit a minimum of Rs 500 and a maximum of Rs 1.5 lakh for each financial year. The investment can be made in a lump sum or in 12 instalments. PPF scheme is a long-term investment policy with a minimum tenure of 15 years. This tenure can be extended by five years block as per wish.
A PPF account can be opened with just Rs 100 per month. If an investment of Rs 1.5 lakh is made, then it will not earn interest and will not be eligible for tax savings. PPF account can only be opened in an individual's name but the account holders can designate a nominee both at the time of opening the account or subsequently.
Read: Bank Locker Deadline: Important updates for bank locker holders you need to know
PPF account eligibility
Anyone who is an Indian citizen can open a PPF account. It is to be noted that one citizen can have only one PPF account.
PPF account: How to open
A PPF account can be created with either a Post Office or with any nationalised bank such as SBI, PNB, more.
PPF Account: Steps to open an account
- Log into your bank account on the Internet banking or mobile banking platform.
- Select the ‘Open a PPF Account’ option.
- 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.
- Enter the relevant details in the application form.
- Key in the total amount you want to deposit in the account per financial year.
- Submit the application. An OTP will be sent to the registered mobile number. Enter it in the relevant field.
- 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.
