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How to Invest in PPF Online and Offline?

PPF is a combination of safety, tax benefits and returns that make it an excellent savings-cum-investment product

Synopsis:

  • Opening a PPF Account: You can open a PPF account at a bank or post office, either online or offline, with a minimum annual investment of Rs 500 and a maximum of Rs 1.5 lakh. The account has a tenure of 15 years, extendable in blocks of 5 years.

  • Investment Methods: Deposits can be made offline (cash, cheque, demand draft) by filling a PPF deposit form, or online via NetBanking by adding the PPF account as a beneficiary and transferring funds.

  • Tax Benefits and Management: PPF investments qualify for tax deductions under Section 80C of the Income Tax Act. You can automate deposits through standing instructions and monitor your account balance and transactions online.

Table of Content

Overview

An investment in the Public Provident Fund (PPF) is one of the best ways to build long-term wealth. Combining safety, tax benefits, and attractive returns, PPF is an excellent savings-cum-investment product suitable for all types of investors. This guide will help you get started on investing in PPF.

How to invest in PPF

Opening a PPF account

To begin your PPF investment, you must first open a PPF account at a bank or post office. The process is straightforward and can be completed either online or offline. (Refer to our step-by-step guide on how to open a PPF account for detailed instructions.)

Understanding the basics

  • Investment amount: You can invest annually in PPF, in up to 12 installments, with a minimum of Rs 500 and a maximum of Rs 1.5 lakh.

  • Account holder: Investments can be made in your name or on behalf of a minor.

  • Tenure: The PPF account has a fixed tenure of 15 years, which can be extended in blocks of 5 years.

  • Tax Benefits: PPF investments are eligible for deduction under Section 80C of the Income Tax Act.
     

Investment process

  • Offline: Deposits can be made in person by visiting a branch.

  • Online: Deposits can be made via NetBanking.

How to invest in PPF offline

Step-by-step procedure

1. Deposit methods: You can deposit the amount by cash, cheque, or demand draft.

2. Filling the form: Complete a PPF deposit challan or Form B, which includes a main section and two counterfoils (one for an agent and one for your receipt).

  • Enter your name, address, PPF account number, investment amount, and payment method (cheque or cash).
     

3. Submission: Submit the form at the bank or post office.

4. Passbook update:

  • For cash deposits, the passbook will be updated immediately.

  • For cheque deposits, the passbook will be updated after the cheque is cleared.

How to invest in PPF online

Step-by-step procedure

  1. Fund transfer: You can transfer funds online either within the same bank or from different banks.

  2. Adding beneficiary: Log into your NetBanking account and add your PPF account as a beneficiary.

  3. Making a deposit: Once the PPF account is added as a beneficiary, you can transfer funds via NetBanking or MobileBanking.

  4. Automation: To automate your investments, issue standing instructions to your bank for regular transfers to your PPF account.

  5. Account statements: Check your PPF account balances and transaction history online.
     

You can easily view your account statements online to check balances in your PPF account.

To invest in the Public Provident Fund Scheme, click here to know more.

*The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. You are recommended to obtain specific professional advice from before you take any/refrain from any action.

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