What is PPF Account or Public Provident Fund Account ?
Table of Contents
PPF Account is abbreviated as in Public Provident Fund Account, which was initially launched by Govt of India back in 1968, so next time when some asks when was ppf started in India ? Answer them it was in 1968, it was done by the government to mobilize small savings so that the end user gets a tax benefit with reasonable interest at the end of 15 years. This becomes an asset to the user as a pension amount or helpful for a marriage purpose or for purchasing a house. PPF Account by large provides a better safety as compared to any other plan in the country. Hence people prefer opening a ppf account as compared to any other savings plan if they requirement is long term savings. But this is one plan where in ppf interest rate tax free and also provides ppf withdrawal tax free.
Many people who opened PPF Account have asked me Is Maturity Amount of PPF Taxable ? The answer is No. Further, it also acts as a catalyst for a personal savings of a user and provides support at the right time. Investment in PPF Account should follow a minimum duration of 15 years and with a flexible investment amount of maximum 1,50,000 INR in any Financial Year followed by a minimum investment in ppf account per year as 500 INR. The amount of investment can vary every month but ppf account maximum limit per year should not exceed 1,50,000 INR. So ideally every month max of 12,500 INR can be deposited and minimum of 41 INR can remitted into PPF Account.
The loan facility from ppf account can be availed but between 3rd year ending to 6th year ending but its a max of 25% of balance from the 1st year to 4th year. But keep in mind that Public Provident Fund Account is one of the best tax savings instrument in the country for citizens of India. Public Provident Fund Account can be opened in Post Office, Nationalized Banks and also in Private Banks.
The PPF Account Online access can be obtained in designated banks. SBI Online PPF Account can it be opened or not was one of the major questions asked by users across India/ but that’s still not be possible. However, how to invest in ppf account online is something still a mystery in SBI. The actual fact is SBI does not allow a user to open a PPF Account Online. It better recommended to Download a form from SBI and in turn fill it and submit it to the nearest bank which allows you to open a PPF Account. However some of the PPF Account Online Access is listed for some of the banks
PPF Account Online for Canara Bank – https://epayment.canarabank.in/PPFEpayment/de/PPFHome.aspx
PPF Account Online for Axis Bank – http://www.axisbank.com/personal/investments/public-provident-fund/how-to-apply.aspx
The above two banks offer Opening PPF Account Online. All other banks don’t offer users to Open a PPF Account Online
Documents required to open ppf account in SBI, SBH, SBM, Post Office, ICICI, Axis Bank, Bank of Baroda, IDBI, PBN, Canara Bank or any Private bank are all the same. However the list of documents required to Open PPF Account are listed below
Photo ID Debit/Credit Card
Employers Letter stating Mailing Address
Self Signed Cheque
Note : The Documents required to open PPF Account in SBI are the same as listed above and its same for Post Office too.
Can I Open Two PPF Accounts
Many users have asked this query many times, that CAN I OPEN TWO PPF ACCOUNTS IN TWO DIFFERENT BANKS and many similar questions. The one single answer to this question is NO. A person cannot have two ppf accounts in his name and in any banks. At any point of time, the person can have only one ppf account and having a second account by mistake, should be brought to the notice of the individual bank manager and immediately cancelled.
However, a person can have two PPF Accounts which includes his personal PPF Account and maintain the minor ppf account as a guardian for his daughter or son. Later move the account in his sons or daughter name as soon as they attain the age of 18 years. Until this duration, a person can have two ppf accounts one main and one as a guardian ( in the name of his / her daughter or son ). Even to the question – can i open two ppf accounts in different banks : The answer is BIG NO. As long as you have ONE Personal PPF Account and ONE Minor PPF Account in the name of your son / daughter.
Note: Grandparents can open account in the name of their grand daughter / grand son, provided if the child’s father and mother are no more.
PPF Investment Limit for FY 2022-23
The ppf investment limit for FY 2022-23 is fixed at 1,50,000 INR and the minimum ppf investment limit for FY 2022-23 is at 500 INR. Make sure the minimum investment is made during the FY to avoid any penalty to the PPF Account for the subsequent year.
Note: The ppf investment limit for fy 2022-16 was increased from 1,00,000 INR to 1,50,000 INR by the Modi Government.
How to Open a PPF Account
In this topic, we will review How to Open PPF Account for an individual in SBI, Axis Bank, ICICI, Canara Bank, Vijaya Bank, Corporation Bank, Central Bank of India, Indian Bank, IDBI and many more banks that offer PPF Account. In order to open a PPF Account for a major or a minor there are different documents required. Few documents are listed above, which will be sufficient for a major or ideally a person above the age of 18 years. However procedure to open ppf account for minor is more or less the same, except that for a minor the birth certificate of the child followed by guardian / father / mother PAN card is mandatory.
Apart from that users have some common questions like How to Open PPF Account online in SBI, SBM, PNB, BOB. Please note that, if the bank offers PPF Account Online Access they need no have options to create a new PPF Account Online . Hence it is always advised to check with the bank before trying to access on How to Create a PPF Account Online. Banks such as Canara Bank provides options on How to create a PPF Account Online. To know more Visit this link – How to open ppf account in canara bank. This gives users a clear understanding as to how to Open the account. Further banks such as ICICI Bank offers – icici bank ppf account opening online process, where users can submit the application online and then visit the nearest designated banks where PPF Accounts can be opened and complete their registration process. Some more banks where they allow Online PPF Account Opening Process are
Canara Bank (as listed above )
Bank of Baroda
Bank of Maharashtra
Bank of India
ICICI ( as listed above )
Post Office – Yet to network with core banking
The list still continues, but keep in mind about the below requirement.
Note: One key aspect to follow is that, when a users wants to open an ppf account online in any bank of his / her choice, its mandatory to have a savings bank account in the same bank, while some may debate on this topic, but its my long term experience I would say, based on the users feedback as well, that having SB Account in the same bank where the PPF Account exist is a wise decision to take rather than to repent during withdrawal time from PPF Account. Although this sounds intimidating, but its essential and you will agree with me when you try to withdraw money from your ppf account.
As I’ve have discussed above, its important to know what are the documents required to operate the PPF Account. The below topic helps a user to know better what documents are required to communicate with the bank with PPF Account.
Steps to Activate Dormant PPF Account
There are several methods to activate dormant ppf account also called as steps in activating inactive ppf account and some are listed below
Visit the Bank and review the passbook updation process
Deposit the minimum fine amount to paid based on the years of in-activeness
Submit an application, self written to the bank manager to activate the account.
Deposit the minimum amount to keep the account active – 500 INR
List of Banks Offering PPF Account in India – Nationalized Banks
In this topic we will review the list of banks offering ppf account for citizens of India. Even before Nationalized Banks could offer PPF Account, Post Office PPF Scheme was only one to offer PPF. The only draw back was Post Office PPF Online facility was not available with them and this actually led to several problems which I will share in the later segment. Hence when Nationalized Banks started coming up, they in turn offered online ppf account opening and further ppf account online access system started benefiting thousands of users as they could transfer money to PPF Account without any issue and in turn be on par during investment cycle. Several banks provided PPF Account Opening and the list is given below
Canara Bank PPF Account : http://www.canarabank.com/english/scripts/ppf.aspx
SBI PPF Account : https://retail.onlinesbi.com/personal/reg_forms.html ( Click on Public Provident Fund Forms )
Punjab National Bank PPF Account : https://www.pnbindia.in/en/ui/content.aspx?id=1158 ( Inside you have access to forms )
Bank of Baroda PPF Account : http://www.bankofbaroda.com/pfs/govtbonds.asp
UCO Bank PPF Account : https://www.ucobank.com/other-services/ppf-schemes.aspx#.VxglmjB96M8
Union Bank of India PPF Account : http://www.unionbankofindia.co.in/personal_govt_ppfund.aspx
Central Bank of India PPF Account : https://www.centralbankofindia.co.in/site/MainSite.aspx?status=2&menu_id=183
Allahabad Bank PPF Account : https://www.allahabadbank.in/pdf/PPF%20Account%20Opening%20FORM%20A.pdf
Corporation Bank PPF Account : http://www.corpbank.com/node/62163
Vijaya Bank PPF Account : http://www.vijayabank.com:83/sbaccrequest/home.aspx
State Bank of Travancore PPF Account : http://statebankoftravancore.com/ppf.htm
State Bank of Mysore PPF Account : http://www.statebankofmysore.co.in/deposits/242.html
List of Private Banks Authorised to Open PPF Account
ICICI Bank PPF Account : http://www.icicibank.com/Personal-Banking/investments/ppf/ppf.page ( ICICI Bank PPF CALCULATOR )
Axis Bank PPF Account : http://www.axisbank.com/personal/investments/public-provident-fund/features-benefits.aspx
PPF Interest Rate 2022
PPF Interest Rate varied from time to time and the above table and graph gives a good understanding of PPF Interest Rate over a period of time. The PPF Interest Rate table and graph will be updated from time to time.
Note: The PPF Interest Rate from 2022 will be based on the market cap and depends on government bonds, hence the PPF Interest Rate will fluctuate based on quarter results.
PPF Interest Rate 2022 : April 1st 2022 – June 30th 2022 will be 8.1%
PPF Interest Rate History in India
PPF Interest Rate History starts back from 1952 and has gone a long way in changing its interest rate for the last few decades. Further ppf historical interest rates were stagnant for few years in the 90’s were the PPF Interest Rate was 12% constant. But since 2000 the ppf interest rate changes were volatile and the list is given below. The chart shows ppf interest rate chart from 1952 to 2022 and the recent changed process for 2022.
A PPF Interest Rate Graph is also show below
SBI PPF Interest Rate
I wanted to make a special appeal to users across India, that users keep search for the term SBI PPF Interest Rate all the time. The PPF Interest Rates are all the same across the country and across all the private and national banks. Hence next time some one asks what’s the SBI PPF Interest Rates, tell them that the interest rates are the same across all banks for PPF Account.
PPF Account Forms
There are different forms available in transacting with the banks related to PPF Account and they are listed below.
PPF Form A : This form is used to open a PPF Account in a bank or post office, the format of the ppf form a may vary, but the details related to PPF Form A will be – Name, Address, Age, PAN Number, Phone Number, Email ID, Amount deposited in PPF Account. Users can open PPF Account individually when cross 18 years of age, while a PPF Account for Minor can be opened by a guardian or the child parent. In case of PPF Minor Account age proof (birth certificate) will be sufficient while all other documents of the parent or guardian will be sufficient to open PPF Account.
PPF Form B : This form is used to make deposit into ppf account which includes yearly payments into PPF Account which can be either minimum of 500 INR or maximum of 1,50,000 INR, further, if the loan is taken the same form can be used to make repayment to PPF Account. Also, when the ppf account dormant or when the ppf account inactive then this form can be used to make deposit into PPF Account and inturn make the PPF Account Active.
PPF Form C : This form is used to withdraw money from the PPF Account. This form can be used from the 7th year of opening the account. The user needs to fill in details such as Account Number, Amount to be withdrawn and also an declaration signing – stating that no amount was withdrawn earlier from the account for that financial year.
PPF Form D : The PPF Form D is used to take loan from PPF Account, as you may be aware from the earlier discussion I’ve had in this post, one can withdraw money from PPF Account as Loan and this is possible between 3rd year to 6th year of active ppf account operation. Hence if a user willing to take loan on PPF Account, then the ppf form d needs to be submitted to the bank with details such as Account Number, and Amount needed to take loan, usually this amount is 25% of the previous 3rd year of active account operation.