The Public Provident Fund (PPF) is backed by the government of India and is one of the favorite investments among Indians, as it offers an attractive rate of interest. People who do not want to take risks can invest in Public Provident Fund, as investment gives fixed income and it is not exposed to market volatility. Currently, PPF offers 7.6% rate of interest for Jan-March 2018.
Your investment in PPF will be locked for 15 years and you can invest either through lump-sum mode or through 12 monthly installments. You need to invest at least Rs 500 a year to keep your PPF account active, the maximum amount that can be invested in a financial year is Rs 1,50,000.
Your investment in PPF enjoys the EEE benefit. The money invested in PPF will be tax exempt up to Rs 1.5 Lakhs under Section 80C of the Income Tax Act. The money accumulated and withdrawn at maturity, are also tax-free.
PPF account can be opened by all Indian citizens, but a single person can hold only one account. Parents or legal guardians can also open PPF account on behalf of minors. You can open PPF account in the designated post offices or bank branches. You can also open it online.
You can open an online PPF account, only with banks and post offices do not offer this service. Not all banks provide the complete online account opening facility.
Conditions to open PPF account online
How to open a PPF?
After you provide all the basic information, you must complete the Aadhaar e-verification process. Under the Aadhaar e-verification process, once you enter your Aadhaar number, OTP will be sent to your mobile. After entering OTP your PPF account will be opened.
Under the partial process, you can create the application online. Once the application is submitted, take a print out, sign it and submit it along with the KYC documents at the branch where you want to open the account.
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