Public provident funds can be opened Online or Via Bank Branch or Post office.
At the end you can find a Blog link which has explained exact process of opening a PPF account online with screenshots.
But before opening the PPF account you may also like to know the Benefits, Features and Interest calculation of Public provident funds.
What are major benefits OF PPF
- Well, you would be shocked to know that PPF is highest paying investment in zero risk investment category.
- PPF has EEE advantage (Exempt, Exempt and Exempt)
- E: Contribution or Deposits are non-taxable U/s 80 C of The Income Tax Act.
- E: Interest accrued is Tax free.
- E: Maturity/Withdrawal amount is non-taxable.
- PPF is mentioned under Section 80C of the Income Tax Act. In terms of income tax implications, PPF accounts also qualify for EEE (exempt, exempt, exempt) tax category, which means you are not liable to pay tax at all three levels – investment, earning and withdrawal.
- Instant loans can be availed from all the major leading banks with your PPF investment. PPF allows this benefits from 3rd financial year of your investment.
- If you are in need of urgent money, you are allowed to do partial withdrawal from your PPF investment. This benefit starts from the 7th financial year of your investment.
- You can continue your PPF investment even after the maturity date. Additional contribution is also allowed after the maturity. Read more
Interest calculation of PPF investment.
Minimum amount maintained in the PPF account (From 5th day of a Month till end of the month) is considered as principal amount on which credit interest is calculated.
With the below example let’s see how Interest calculation changes if you deposit amount on or before 5th day of a month and after 5th day of a month
Let’s say your Account balance on 1st June is Rs.10000.
- You deposit Rs.5000 to your PPF account on 5th June. The interest for the month of June will be calculated on total amount of Rs.15000 (balance as on 5th October).
- You deposit Rs.5000 after 5th October, say on 6th June, the interest for June will be calculated on Rs.10000 which is the balance on 5th October EOD. The additional Rs.5000 shall be considered for interest calculation in the next month i.e. July.
Hence, it will be beneficial if you deposit amount in your PPF account on or before 5th day of a month to get extra accrued interest.
Best and instant way to open PPF account online:
I have created my new online PPF account literary within 5 minutes. HDFC and AXIS bank is providing instant PPF account creation service.
And i preferred HDFC bank, so let’s see the steps in opening PPF account.
First Login into your HDFC net banking and browse to your left then click on “Offers” tab.
Second select the offer names as “Experience the convenient way to Save Tax!” and fill you details.
You should note that Minimum amount for initial payin is RS. 500 and Maximum is RS. 150000.
Click on the “Submit” button and you will receive the successful message and in case you already have an existing account you will see the below message.
Furthermore, If AADHAAR is linked to bank account already, PPF account opening form will be submitted, and you will receive a message that your account will be opened in one working day.
Online Public provident fund account opening is allowed only for customers having Linked AADHAAR card to the Bank account.
Is PPF investment worth it?
YES, PPF is a life saver especially for employees newly crossing Taxable income slab (RS. 250000 per annum). Further it is an efficient tax saving instrument to enjoy tax free returns and to build a good corpus at maturity with no risk