How to Open PPF Account in Post Office Online and Offline Process

The Public Provident Fund (PPF) is a well-known savings plan with guaranteed returns and tax advantages. The government permits customers to open a PPF account through India Post Offices to make PPF accessible to everyone, especially those in distant places. In terms of main characteristics, interest rates, and other requirements, a Post Office PPF Account is identical to one opened with a public or private bank. Opening a PPF account post office follows a similar procedure and requires the same paperwork. Here’s everything you need to know about opening a PPF account at a post office.

Interest Rates (2022-23)

As stipulated by the RBI, a PPF account will earn 7.1 percent per year (compounded annually), and you will get the complete interest amount at the end of each fiscal year. You can deposit money into a PPF account at any time during the year, but you must keep a minimum balance of Rs. 500 and a maximum amount of Rs.1,50,000 in a fiscal year. If a minimum of Rs. 500 is not deposited in a fiscal year, the PPF account will be closed. Also, the discontinued accounts can be reactivated by the depositor before the account matures by depositing a minimum subscription (that is, Rs. 500) + Rs. 50 default fee for each defaulted year, according to the Post Office’s official website.

You can either deposit cash, cheque or pay online in one big sum or in instalments, depending on your convenience. The deposits will be tax-deductible under Section 80C of the Internal Revenue Code, and the term or lump sum interest will be tax-free, making it a profitable investment. After 5 years, except for the year the account was opened, you can only take one withdrawal of up to 50% of the balance in a fiscal year.

The government maintained the same interest rate in the current quarter as in the previous quarter; the rate adjusts every three months (quarterly).

Post Office PPF Account Details

Post Office PFF entails the following guidelines that need to be looked upon while opening an account:-

Eligibility for PPF account in Post Office

Following are the factors one needs to fulfil so as to become eligible to open a PPF Account in post office:-

• A person who works for a private firm, is a pensioner, is self-employed, or belongs to another comparable category can register a post office PPF account in post office.

• A person can only have one account in their name. If they open two accounts, the second account’s principal will be reimbursed to them without interest. The account will be closed as well.

• On behalf of their child, a mother or father (but not both) can open a PPF account in post office( minor).

• If the mother or father dies, the child is unable to continue the account. The account will be cancelled and the money repaid in such situations.

• PPF accounts can only be opened at double-handed post offices or higher.

Required Documents for Post Office PPF

Following is the list of required documents for PPF Account opening in the Post Office:-

• Aadhar Card, Passport, Driver’s License, Voter ID, and other forms of identification are acceptable.

• Aadhar Card, Passport, Driving License, and other forms of identification can be used to prove your address.

• PAN Card (Permanent Account Number)

• Form E – Nomination Form with a passport-size photograph

How to Open a PPF Account in Post Office?

Currently, PPF Account Opening at a post office is a paper-based process. As a result, it necessitates actual presence at a nearby post office. The procedure for opening a PPF account post office is as follows.

Offline Procedure for Post Office PPF

• Firstly, visit the local post office or sub-office and obtain an account open application form.

• After completing the application form, submit it along with self-attested copies of KYC papers (PAN card, Aadhar card, Voter ID, etc.) and a passport-size photograph to a nearby post office.

• For account opening, a cheque or draft deposit of INR 500 is required. Individuals are initially limited to a maximum investment of INR 70,000. The maximum deposit that can be made in a financial year is INR 1.5 lakhs.

• After all of the necessary documentation and the initial deposit has been filed, the PPF account passbook is handed over to the individual. The PPF account number, account holder’s name, and branch name are all listed in the passbook. In addition, one can go to the post office to learn more about their PPF account details.

Steps to Open PPF Account Online 

There is no online option for PPF account opening in the post office. However, the application form for opening a PPF account can be downloaded from the post office’s website.

Individuals can also deposit money in their India post PPF account online after the account is set up. Follow the following steps to deposit money to your account online through the IPPB application.

Step 1: Download and install the IPPB app from your phone’s app store.

Step 2: Deposit funds into your IPPB account from your bank account.

Step 3: Go to the Services section of the Department of Post (DOP).

Step 4: Select the sort of account you’d like to use. In this scenario, the account of the Public Provident Fund is used.

Step 5: Enter your DOP customer ID and PPF account number.

Step 6: Select the ‘Pay’ option after entering the amount you want to deposit.

Step 7: Double-check everything and proceed.

PPF Scheme in Post Office

The Post Office Savings Schemes offer a variety of trustworthy products as well as risk-free returns on investment. These programmes are run by almost 1.54 lakh post offices across the country. The PPF scheme, for example, is run by the government through 8200 public sector banks and post offices in each city.

There are a number of schemes under Post Office PPF but the one which stands out is the 15-Year PPF Scheme as it is preferred mostly by salaried people.

15-Year Post Office PPF Scheme

Many salaried people chose PPF as an investment and retirement vehicle because it allows them to deduct up to Rs 1.5 lakh in income tax per financial year under Section 80C.

Following are the features of this scheme:-

• The account requires a minimum deposit of Rs 500 and a maximum deposit of Rs 1.5 lakh.
• The account is valid for 15 years from the date of opening. To keep the account operational, you only need to pay Rs 500 per financial year.
• The scheme offers a compounded annual interest rate of 7.1 per cent. Additionally, the interest on this account is tax-free.
• Section 80C of the Income Tax Act allows you to deduct the amount you put into a PPF.
• The account can be extended for another five years by the investor.

PPF Loan and Partial Withdrawal

Loan

Despite the fact that the post office PPF account matures in 15 years, you can take out a loan against it from the third to the sixth year from the date of account opening. In a given fiscal year, only one loan can be obtained. If the first loan is not paid in full, a second loan will not be issued.

Interest Rates

• If the loan is repaid within 36 months of taking it out, interest will be charged at 1% each year.
• If the loan is repaid after 36 months, interest will be charged at a rate of 6% per year.

The maximum PPF loan amount is limited to 25% of the PPF account balance at the end of the second year immediately preceding the year in which the PPF loan is requested.

Partial Withdrawal of Post Office PPF

You can make partial withdrawals every year from the 7th year (from the account opening date) until the post office PPF account matures. The maximum partial withdrawal allowed is equal to 50% of the PPF account balance at the end of the fourth previous year or the year immediately preceding the withdrawal year.

PPF Account Balance

Despite the fact that we contribute to the PPF plan every year, we do not make it a practice to check the balance of our PPF account on a regular basis. The Public Provident Fund, a government-sponsored savings plan, provides tax advantages and high investment returns. Because it is a long-term savings plan, you must check your PPF account balance on a monthly basis.

How to Check PPF Account Balance in Post Office

Everything works very identically at a post office, but here’s some information to help you check your PPF account balance online on the bank site or acquire information on your PPF account at the post office:-

• In order to check your Public Provident Fund balance online, you’ll need your establishment code and PF account number, which will be displayed on the screen. 
• For ex., if your PF number is KR/KK/151C/496, then your Establishment Code will be 151, and the establishment extension will be C, 
• Also, PPF accounts can only be opened at a head post office or a sub-post office which offers PPF services.

How to Check Account Balance in Post Office by SMS?

• To check your PPF account balance in Post Office, you can dial 9223766666 or send an SMS with the word ‘BAL’ to the same number and you will receive the account update on your phone number registered with the Post Office.

How to Check Account Balance in Post Office Online?

To check your PPF account balance online, you must meet the following requirements:-

• To check the balance of your PPF account online, you must first link your PPF account to your bank savings account and then apply for internet banking.
• The savings bank account and the PPF account may need to be from the same bank in order to be linked.
• It is also feasible to transfer funds from a savings bank account to a PPF account. To ensure that no payments are missed, you can give the bank standing instructions for the transfer of monies to the PPF account.
• Net banking signup is very much easy. You’ll need to request a login and password from the bank. Registering for net banking gives you access to a variety of other services, including bill paying, loan applications, statement reading, and fund transfers. Registering for net banking saves time and can be utilised from the office or at home, in addition to reducing paperwork.

Follow the Step-by-step Guide to Check Your PPF Account Balance Online

• Under the ‘personal banking’ tab, log in to your bank’s PPF account portal using your username and password.
• On the dashboard, you may see your savings account and your PPF account after logging in.
• To check your PPF balance, go to your PPF account. When you click the ‘Click Here For Balance’ tab, the balance amount will appear.
• You can look at the past ten transactions you made with your PPF account.
• You can also view the details of old/closed/matured/inactive PPF accounts with the same bank by clicking on ‘Click here to view the details of Matured/Closed Accounts’.
• You can see the balances of all the accounts by clicking on ‘View All Balance’.

Features and Benefits of Post Office PPF 

• The lowest amount that can be deposited in a single year is INR 500. This also aids in the account’s continued use.

• In a financial year, the maximum amount that can be deposited is INR 1.5 lakhs.

• A PPF account matures after 15 years. An individual, on the other hand, has the option of extending the length by a 5-year block. Furthermore, a future extension will not necessitate any further investment.

• Individuals can take out a loan against their PPF account. They can, however, take out the loan between the third and fifth years. Furthermore, the loan amount cannot exceed 25% of the investments for the second financial year.

• Nominees can be added to an account at the time of opening or after it has been opened.

• Contributions to PPF accounts are tax-deductible under Section 80C of the Income Tax Act of 1961. In addition, the interest earned on contributions is tax-free.

• Individuals can withdraw their money from their accounts before they reach maturity. They can, however, only withdraw a portion of the money. As a result, only 50% of the PPF balance at the end of the fourth year or 50% at the end of the previous year, whichever is smaller, can be withdrawn.

• Individuals are not permitted to close their accounts before the maturity period, which is 15 years.

• Individuals can pay in a flat sum or up to 12 installments over the course of a financial year.

• Individuals who have already opened an account on behalf of a minor can open another account on behalf of the minor.

• Individuals can only open a PPF account in their own names. Joint accounts are not permitted in the PPF.

In an effort to make the Public Provident Fund Scheme more accessible, India Post has permitted the scheme to be available in single-handed sub-post offices. In India, the PPF scheme is particularly popular because it has a 15-year maturity benefit. In addition, any investments made into the scheme are eligible for tax benefits of up to INR 1,5 lakhs. Furthermore, in the hands of people, the PPF interest rate is tax-free.

Frequently Asked Questions (FAQ’s):-