PPF – Public Provident Fund is one of the long-term, safest & Govt approved investment in India.
This fund comes under EEE – Exempt-Exempt-Exempt category which means the amount deposited under PPF is deductible under 80C & also the total amount and the interest earned is excempt from tax during withdrawal of the amount. This makes it one of the most attractive & safest investment for Indians.
You can open an PPF account at your nearest Post-office or any nationalized banks along with few private banks without any charges. You can apply with Offline or Online mode. Since Online mode is much easier to open and to manage, let’s take HDFC online method to open an PPF account.
Before we start, please note below 2 points:
- The minimun tenure for PPF account is 15 years which can be extended every 5 years later. Only upon maturity, you can withdraw the entire amount and partial withdrawal is only possible after completing 6 years. So consider PPF only for LONG-TERM-INVESTMENT.
- You have to deposit atleast once in a year for 15years – min amount Rs. 500
- Login to your HDFC netbanking account and click “Offers” tab – which opens list of banners. Look for Public Provident Fund banner (which is at top in the below image) and click “Click here” button.
2. A new page should open as shown below and it will auto-populate your details. Enter the amount you want to invest in PPF ( Min: Rs. 500 to Max: Rs. 1,50,000 ) per year. You can invest only 12 times in a year. Add a nominee if required ( not mandatory ). After entering the details, click “Submit” button.
Once you submit the form, HDFC will process your request within 1-2 days and create an Saving Scheme account in your name and add the amount to it. This completes your PPF account creation with HDFC bank.
3. You can set the standing instruction for auto-debit from your bank account every month or pay manually as show below. Click Accounts–> Transact–> Funds transfer to own accounts–> select “Transfer Funds to PPF” and click Continue button.
4. Once the below page opens, scroll down and enter the Subscription amount to be paid – which can be greater than or equal to Minimum subscription amount i.e Rs. 500 but lesser than Rs. 1,50,000/year. Click Continue button and your PPF account gets credited with the amount you specified.
Happy Investing 🙂