What is the Difference Between Post Office PPF and Bank PPF?

When you open a Public Provident Fund account in any bank, they derive similar interest outcomes to a post office PPF account. Still, post office PPF services are popular due to their greater accessibility across rural areas.

Additionally, urban citizens also reach out to post offices due to their dedicated public service backed by the Government. Whether you choose to have a PPF account with your preferred bank or post office you can register online by visiting their official website. To gather clarity on PPF in bank vs post office, keep on reading this post.

1. Opening a PPF Account in Bank Online

If you are an existing customer of a particular bank, follow these steps to complete the PPF account registration:

• Step 1: Log into your bank account using the mobile net banking app. Make sure your Aadhaar linked mobile number is already linked to that account otherwise you will not receive an OTP that will be sent during the PPF account opening process.
• Step 2: After logging into the account, search for 'Public Provident Fund' under the 'Offers' tab.
• Step 3: Under this head provide the necessary information. Also, if the Aadhaar card is not linked to the bank savings account, link it first otherwise you cannot proceed to the next step.
• Step 4: Next, transfer the initial funds from the linked savings account and wait for the account opening confirmation text.

2. Opening a PPF Account in Bank Offline

For the offline PPF application process, you should follow these points:

• Visit the bank where you wish to open a PPF account. You must hold a savings account with this bank from before.
• Ask for the application form, fill it out, attach the required documents and make the initial deposit, a minimum of Rs.500. 

When you execute these steps, the officials open a PPF account immediately and hand over the passbook.

1. Opening a PPF Account in Post Office Online

First, you have to visit the home branch as per your residential address, fill out the DOP application form, and submit the requested documents. Once the Internet banking gets activated, you can request to open a PPF account following these steps:

• Step 1: Visit the official portal of the Indian Postal Service, log in to your savings account using your user ID, and set your password.
• Step 2: Navigate to the ‘General Services’ tab and choose the option – ‘Service Requests’. Next, you find the option ‘PPF Accounts’ under the head ‘New Requests’. Click on it.
• Step 3: Click on ‘Open a PPF Account’.
• Step 4: Now you have to confirm the savings account with which the PPF account is going to be linked.
• Step 5: Finally, click on ‘Submit’. A transaction ID is forwarded to the phone number registered with the savings account. After you enter it, click on ‘Submit’ again.

Once you complete the process, store the receipt for the deposited money safely until the amount is credited to your PPF account. Once the account activates and the money is reflected, you can view it under the ‘Accounts’ tab.

2. Opening a PPF Account in Post Office Offline

It is necessary to discuss the traditional method of applying for a PPF account in a post office, as many people still find it more convincing due to real-time guidance from postal workers.

If you wish to apply offline, do the following:

• Visit the home branch and collect the PPF account application form.
• Procure the requisite KYC documents along with 2 passport-size photographs and attach them with the duly filled application form.
• While submitting these papers at your nearest branch you would need to deposit some initial amount. It can be any sum between ₹500 and ₹70,000 but annually you can deposit a maximum of ₹1.5 Lakhs.

The recipient official immediately opens an account and hands over the passbook. For any details related to the account, you can always revisit the branch and ask for help.

There is not much difference in return on investment in either of the cases. But while putting our money somewhere, a normal person would consider two main things:

• Where is the maximum profit?
• Where is their money safe?

The profit part has already been discussed briefly above. Now, we look into the safety aspect. A couple of years back, there was news about banks collapsing. Recovery of money became a concern for the common man. Under the current guidelines, any bank under RBI provides recovery of up to 5 lakhs Indian rupees in case of bank failures.

The post office, on the other hand, is under the government of India. This ensures that the money deposited in the name of the public provident fund is returned to the holder along with interest in emergency or collapse situations.

The choice of the better option depends on the evaluation. Both provide their customers the same end for facilities in online and offline formats. One can put all the possibilities which suit them the best and then decide.