The PPF or Public Provident Fund is one of the most popular long-term investment options offered by the Central Government for Indian residents. PPF is one of the rare investments that enjoys the EEE status (exempt on investment, interest earned and maturity proceeds). Being a long-term investment, it fits into the portfolio of all investors with different risk profiles.
You can open a PPF account either directly through a post office or through a bank.
Here, we explain in 2 easy steps how to open a PPF Account through (designated) banks such as SBI and its subsidiary (or associated) banks, ICICI, PNB, etc.
STEP-1: PPF account cannot be opened in any bank branch; it can be opened in only designated bank branches. You can get the list of designated bank branches at the bank website or can find out at your bank branch itself.
You can find out ICICI Bank’s list of PPF designated bank branches by clicking here.
STEP-2: Submit Required Documents as below.
Account opening Form-available at the designated bank branch
a) PAN Card
b) Driving License
c) Voter ID Card
a) Telephone Bill
b) Electricity Bill
c) Ration Card
2 (RECENT) PHOTOGRAPHS
Pay-In Slip (available at the designated bank branch) to transfer amount to your new opened PPF Account
Ø Carry original documents to the bank for verification.
Ø Documents should be self-attested.
Ø Once the account is opened, a PPF Account passbook is issued to you. All transactions on your PPF Account are updated in this passbook; the passbook is required for claiming tax deduction under Section 80C of IT Act.
Ø Read the ‘7 Must Know Facts on PPF Account’ by clicking here.
Opening a PPF Account with a bank is lot more convenient than through a Post Office. This is because a PPF Account with a bank facilitates online funds transfer from your savings account to your PPF account – the same way you make online funds transfer to other bank accounts.
An important point to note regarding online funds transfer is that the Payee name should match the name as mentioned in the PPF Account passbook.
By Priya Rao, Certified Financial Planner (CFPCM) at InvestmentYogi.