How to buy ppf investment plan online 2021

How to buy ppf investment plan online 2021

PPF or Public Provident Fund is one of the most popular savings schemes prevalent in India. The money and returns invested in this scheme are safe and guaranteed because offered by the government.

PPF schemes like, Senior Citizen Security Scheme (SCSS), Sukanya Samriddhi Yojana, National Savings Certificate (NSC), etc., are mainly aimed at benefitting small investors.

How to buy ppf investment plan online

The schemes started with a minimum of Rs 500. PPF is specially meant for those who are looking for savings schemes with safe and guaranteed returns.

PPF also offers tax benefits, as it comes under the exempt-exempt-exempt (EEE) category. In the first year, the investment in PPF person will get a tax exemption (under section 80C).

The interest rate of PPF fixed at 7.1% for the first quarter of the year 2021-22 i.e.

Table of Content

  1. Features to buy PPF plan investment plan online
  2. Eligibility criteria for PPF plan
  3. How to buy a PPF account online
  4. Check Balance Online
  5. Withdraw PPF plan
  6. Required Documents for PPF plan
  7. PPF Nomination
  8. FAQ/Frequently Asked Question

1- Features to buy PPF plan investment plan

  1. Lock-in period: ppf investment plan online is a long-term investment of 15 years. When your PPF account becomes mature then you can withdraw. Withdrawal prematurely (withdraw money) only in an emergency condition, and extend for 5 years.
  2. Interest on PPF: The interest rates for each quarter announced by the government. the interest amount is calculated after the 5th of every month, till the last day of the month. Hence, it is advisable to contribute to your PPF account before the 5th of every month.
  3. Minimum and Maximum Investment: Individuals need to invest a minimum of Rs 500 annually. And the maximum investment that can be made in a PPF account in a financial year is up to Rs 1.5 lakh.
  4. Taxation: PPF also offers the best tax benefits comes under the exempt-exempt-exempt (EEE) category. It means a principal amount, maturity amount, and interest earned will not be taxed.
  5. Loan Against PPF: You can take a loan with the help of your PPF balance. However, get a loan between the beginning of the third year and the end of the sixth year from the date of account opening.

2- Eligibility criteria for PPF plan

  1. It is necessary to be an Indian citizen to open a PPF account.
  2. However, a resident Indian who has become an NRI after opening the account can continue with the account till maturity.
  3. Parents/Guardians can also open PPF account for their minor children
  4. Opening of the joint account and multiple accounts is not allowed

3- How to buy a PPF account online

If you have an account with any of the following banks, you can use their net banking service to open a PPF account:

  1. Login to your net banking portal
  2. Click on the ‘Open a PPF Account’ option.
  3. Select the option of ‘self account’ and ‘minor account’.
  4. Enter the required information like a nomination, bank information, etc.
  5. Verify the details shown on the screen like your Permanent Account Number (PAN), etc.
  6. After verifying the details, enter the amount you want to deposit in your PPF account.
  7. You will be enable standing instruction, which deducts the amount from your account at a specified time.
  8. After selecting the option of your choice, you will receive an OTP on your registered mobile number.
  9. After verification, your PPF account is opened. You can save the displayed account number for future reference.
  10. Some banks may also ask you to submit a hard copy of the information entered along with the reference number and your KYC details to the concerned bank.

Note- That Each bank may have a relatively different process for opening a PPF account.

4- Check Balance Online

If the PPF account is opened through the net banking service of a bank, then checked PPF balance online:

  • Before starting this process, make sure that your net banking account is active.
  • Log in to your PPF account using your Net Banking Login ID and Password.
  • After logging in, your current PPF account balance display on your screen.
  • By logging into your account using Internet Banking, you can make online transfers to your account, enable standing instructions for your PPF account, download your account statement and submit your PPF loan application form.

5-Withdraw after buy PPF investment plan online

  • 50% of the amount available end of the financial year
  • 50% of the existing balance four years before the year in which the withdrawal is to be made, available at the end of the previous financial year.
  • Form C to be submitted for partial withdrawal of PPF account
  • A declaration should state that no other amount is withdrawn from the account during that financial year.
  • Where the account is in the name of a child, an additional declaration has to be given as to why the amount is required for the use of the minor child, who is still a minor and is alive.
  • A passbook will also have to be submitted along with the form.

6- Required Documents for PPF investment plan online

Here is a list of documents that are required at the time buy PPF investment plan online:

  • PPF Account Opening Form- Form A 
  • KYC documents – Aadhaar card, voter ID, or driving license to verify identity
  • address proof
  • pan card
  • passport size photo
  • Nominee Form- Form E (This can be easily available in the bank)

7- PPF Nomination

  1. Nomination cannot be made for a minor PPF account. 
  2. PPF holders can be nominated parents, spouses, relatives, children, friends, etc.
  3. To add a nominee to the PPF account, the account holder has to submit Form E.
  4. Nomination is made at any time during the account tenure. Change in nomination through Cancellation Form F.
  5. The nomination form has to be signed by the account holder and two witnesses. A nominee’s signature is not required.
  6. After duly filled, submitted to the appropriate bank/post office branch.

8- Best Banks for PPF investment plan online

  1. Indian Overseas Bank
  2. ICICI Bank
  3. Oriental Bank of Commerce
  4. Axis Bank
  5. Bank Of Baroda
  6. Central Bank Of India
  7. State Bank Of India
  8. Punjab National Bank
  9. Union Bank of India
  10. IDBI Bank

9- FAQ/Frequently Asked Questions

Q.1. Is it necessary to withdraw the PPF account balance after 15 years?
The maturity period of any PPF is 15 years, it is not necessary to withdraw after the expiry of 15 years. But you keep the money in the bank account to get Interest on money.

Q.2. Can I extend the tenure of the account for 3 years?
After buy PPF investment plan online, you can increase in blocks of five years on maturity.

Q.3. When can I close the PPF account?
You can close the PF account after the completion of five years, but you may have to follow certain conditions.

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