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PPF Account Opening Form: Why You Need A PPF Account? Know The Benefits And How You Can Open Account Online
PPF Account Opening Form: You can activate PPF online account by filling up visiting the bank's website of your choice or post office, but make sure you have the requisite documents at the time of activation of the account.
PPF Account Opening Form: In tough days it’s our savings that we bank upon, hence our investment decisions are to be taken wisely keeping in mind our financial goals. Public Provident Fund (PPF) is one such small savings instrument offered by the government that can help you in financial planning. We take you through the benefits of an PPF account and how to open the account.
What is a PPF account?
Public provident fund is a popular investment scheme among investors who want to earn high but stable returns. It is a debt instrument which comes with a tax benefits.
scheme aims to safeguard the principal amount which is listed among one of the major criteria of investment.
You can invest up to ₹1.5 lakh in a financial year, and get tax benefit on it. The minimum amount you can deposit is ₹500.
Also, the investment in PPF is eligible for tax benefit under Section 80C of the Income Tax Act. Apart from lump sum investment, you can also opt for monthly investment in PPF. PPF has a 15-year tenure and you can extend it by 5 years after the 15th year. You need to be a resident of India to open the account. You can also open the account in the name of a minor.
Why should you opt for PPF?
You may want to opt for PPF due to its tax saving benefit. You can also invest in PPF in case you require money for a big ticket spending. You could consider investment in a PPF account to achieve a long-term goal, such as your child’s education, down payment on a house, prepayment of a loan you have taken or retirement.
In case of PPF, the power of compounding will enable your money to grow. In order to avail the most out of the PPF investment, you should aim investing at the beginning of the financial year.
How do I open PPF account?
You can open PPF account both offline and online after meeting requisite eligibility criteria. You can activate PPF online account by visiting the portal of a chosen bank or post office.
Here are the requisite documents at the time of activation of a public provident fund account
- KYC documents verifying the identity of an individual, such as Aadhaar, Voter ID, Driver’s License, etc.
- Residential address proof.
- PAN card.
- Passport sized photograph.
- Form for nominee declaration.
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