The National Savings Organisation brought in the Public Provident Fund scheme in 1968. The motive behind this initiative was to promote small investments and savings among the masses. Today, this scheme is a popular savings tool in India.

So, if you are planning to open a PPF account online or offline, allow this guide to walk you through its ins and outs. 

Without any further ado, let’s begin!

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Before we delve into how to open a PPF account, let’s gauge why you should do so. When you open a PPF account, you receive a number of benefits, as elucidated below:

Investment security

As PPF is a government-backed savings scheme, its subscribers can enjoy guaranteed returns. Moreover, it safeguards the financial needs of investors by not being market-linked. Therefore, the PPF scheme is ideal for investors with a low-risk appetite but an inclination for a diversified investment portfolio.

Attractive Interest Rates

PPF offers a higher rate of interest to the investors than any other bank savings. While a savings bank account offers somewhere around 3% - 4% interest rate, PPF offers around 7% to 8% interest rate.

Tax benefits

This scheme extends tax benefits to its subscribers under section 80C of the Income Tax Act, 1961. You can, therefore, avail yourself of tax deductions up to Rs.1,50,000 on the capital invested. Furthermore, the PPF scheme follows the EEE model of taxation. As a result, investors can enjoy tax exemption on both the maturity amount and their earned interest.

Loan against investment

A PPF provides its investors with the advantage of availing loans against their investment amount. You can avail this loan at any time starting from the 3rd year of your account activation till the 6th year.

Partial Withdrawal

An investor has the facility to withdraw an amount from his PPF Balance not more than 50% than the amount to his credit, in times of need. This can be availed after completion of the 5 years from the end of the year in which the account is opened.

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You can open a PPF account online or offline. Although the process varies for every institution, the gist of it remains the same. 

Before you go ahead with this procedure, you must possess the following:

• Proof of photo identity like Aadhaar card, PAN card, Voter ID card, passport, or driving license
• Address proof, such as Aadhaar card, Ration card, telephone bill, or electricity bill
• Two passport-sized photographs of the applicant
• Pay-in-slip or a signed cheque (when applying offline with a bank)
• A savings account and net banking facility
• Aadhar linked to the bank account
• Mobile number linked to Aadhar
• PPF Account opening Form
• Nominee Details

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To open a PPF account online, one must hold a savings account with a participating bank. Moreover, this bank must have mobile banking services or internet banking for the same.

You can simply follow these steps to open a PPF account online:

• Step 1: Log into your online account on the bank’s internet banking/mobile banking platform.
• Step 2: Select the “Open a PPF Account” option.
• Step 3: Now, find the “Self Account” option and click on it.
• Step 4: Fill out an application form by entering the required details. Make sure that you verify all details before submission.
• Step 5: Specify the amount that you plan to deposit in your PPF account each year. (One can start with a minimum contribution of Rs.500/- per year) Also specify the frequency of deposits (monthly, quarterly or yearly).
• Step 6: Here, you can also set standing instructions to transfer this amount automatically from your savings account and into your PPF account. 
• Step 7: After a thorough review, submit this application. You will then receive an OTP on your registered mobile number. Submit it to confirm your identity and authorize this transaction.
• Step 8: You will receive a message on your screen and an email indicating a successful account creation.

Congratulations! Your PPF account is now created.

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If you do not wish to open a PPF account online, you can easily take the offline route. For this, you have to follow these steps:

• Step 1: First, make sure that you compile all the relevant documents required to open a PPF account. Additionally, it is best if you already hold a savings account with the bank to open a PPF account conveniently.
• Step 2: Visit the nearest branch of your bank.
• Step 3: The bank representative will require you to fill out an application form.
• Step 4: Duly fill out this form and submit it alongside the relevant documents for the PPF account.

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Yes, instead of turning to the digital route to open a PPF account online, you can opt for the same at a post office. 

When opening a PPF account in a post office, you can follow these steps:

• Step 1: Visit a post office in your vicinity. It is preferable if you already have a savings account with the post office for a hassle-free PPF account activation. 
• Step 2: Fill out an application form. Additionally, it calls for you to furnish self-attested copies of the relevant KYC documents. Also, ensure that you carry original copies of each document for verification purposes.
• Step 3: Now, you are required to deposit an initial amount using a cheque or DD for opening your account. Here, the minimum initial amount to be deposited is Rs.100. Furthermore, the minimum annual contribution for this scheme is Rs.500.
• Step 4: The post office provides you a passbook for your account once it is up and running.

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Did You Know You Can Also Apply for the Same Digitally?

Simply use the India Post Payment Bank (IPPB) mobile application. This application simplifies opening a PPF account in the post office online. 

After you install this application, follow these steps: 

• Step 1: Open the app and add money from your bank account to the IPPB account.
• Step 2: Find the ‘Department of Post (DOP) Services’ section.
• Step 3: Select the type of account as ‘Public Provident Fund.’
• Step 4: Submit your PPF account number as well as your DOP customer ID.
• Step 5: Enter your preferred deposit amount and select the ‘Pay’ option.

After a successful payment transfer, the app notifies you about the same.

Opening a PPF account in a bank can be done at the below-mentioned participating institutions.

• State Bank Of India and its subsidiaries, which include the following –

  • State Bank of Bikaner and Jaipur

  • State Bank of Travancore

  • State Bank of Patiala

  • State Bank of Hyderabad

  • State Bank of Mysore

• Bank of Baroda
• HDFC Bank
• Bank of India
• ICICI Bank
• Central Bank of India
• Bank of Maharashtra
• Union Bank of India
• United Bank of India
• Punjab National Bank
• Allahabad Bank
• Corporation Bank
• UCO Bank
• Canara Bank
• Axis Bank
• Kotak Mahindra Bank
• Punjab and Sind Bank
• Oriental Bank of Commerce
• Dena Bank
• Indian Overseas Bank
• Vijaya Bank
• Syndicate Bank
• IDBI Bank
• Andhra Bank

The scheme also offers PPF for minors. Here are some pointers to bear in mind when you are opening a PPF account for kids.

• Only a child’s parents or a legal guardian can open a PPF account on his/her behalf.
• Grandparents cannot open a PPF account for a minor if his/her parents are still alive.
• An account cannot be opened in joint names.
• Relationship with the parents / legal guardian needs to be mentioned on the form.
• You can only open a single PPF account for a child.
• The minimum balance in PPF account to be deposited each year is Rs.500, whereas the maximum amount is Rs.1,50,000.

Furthermore, the procedure to open a minor account is similar to that for an adult. You can opt for the same at the nearest branch of your bank or a post office in your vicinity.

However, when you open a PPF account online for a minor, ensure to select the option ‘Minor Account’ after you log into your mobile banking platform.

A parent or guardian must provide his/her details along with the child’s in the PPF application form. Therefore, they are required to furnish the following documents:

• KYC documents of the parent/guardian - photo identity and address proof
• Identity proof: Aadhaar card, PAN card, Voter ID card, passport, or driving license of the minor
• Proof of residence: Aadhaar card, Ration card, telephone bill, or electricity bill of the minor
• Age proof of the minor, such as a birth certificate or Aadhaar card
• A cheque for an initial deposit into the account. Here, the minimum initial contribution is Rs.500.

One cannot ‘convert’ a minor PPF account into an adult one. An application must be submitted to change a minor’s status to an adult when he/she turns 18 years of age. After that, he/she can operate the PPF account.

And with that, we have reached the end of this guide on how to open a PPF account. We hope this helps when you open a PPF account online or offline.