The Public Provident Fund scheme is immensely popular among financial advisors and investors due to its flexibility. Additionally, having a PPF account can also help you save a lot of tax, thus making it a very profitable option for many. However, in order to apply for a PPF account, you must have a very good idea about the whole process and its benefits. This will help you take the right steps while you work towards opening your own PPF account.
Steps to take for opening a Public Provident Fund account
Before you choose to open a PPF account, keep the following steps in mind:
• Step 1- A Public Provident Fund account cannot be opened at any random bank branch. You can open your account only at designated bank branches. You can access a list of all the designated bank branches on the bank’s official website.
• Step 2- In order to open a PPF account, you will have to submit the following documents:
1. Identity proof such as PAN card, Voter ID card, Drivers’ license or passport
2. Two recent passport size photographs
3. Account opening form, which will be available in your preferred bank branch
4. Address proof such as Ration card, Electricity bill or Telephone bill
5. Pay-in-slip, which can be accessed from your preferred bank branch. The pay-in-slip is necessary for transferring the money to your PPF account.
While submitting documents for opening a PPF account, remember to submit original documents to your bank for verification. Make sure that all the documents are self-attested. Once you get the green light for opening your account, you will be provided with a passbook, where all your financial transactions will be updated. Your passbook is an important document, as it will be required for claiming tax exemptions under Section 80C of The Income Tax Act.
Benefits of having a Public Provident Fund
There are numerous benefits of having a PPF account. It can help make your decision a little bit easier, in case you are wondering whether you should go for one or not. The benefits of the PPF scheme are as follows:
• Tax exemptions
• Provision of extending your account after maturity
• Compound interest
• Partial withdrawals
• You can invest as low as INR 600
• Several ways for depositing money
• Trustworthy and secure, since it is a government scheme
• Lucrative for marriages, education, retirement amongst other reasons
• Helpful for long-term investments
• Easily accessible, as the facility for opening a PPF account can be found at multiple places across the country
• The policy amount you choose can never be available for the creditors and cannot be added to any court order
• Almost all the banks in the country offer this scheme, making it very easy to open an account
Going for the PPF scheme is one of the best financial decisions you can take for yourself. Moreover, the whole procedure is a very easy and uncomplicated one. So, go ahead and open an account now.
Steps to take for opening a Public Provident Fund account
Before you choose to open a PPF account, keep the following steps in mind:
• Step 1- A Public Provident Fund account cannot be opened at any random bank branch. You can open your account only at designated bank branches. You can access a list of all the designated bank branches on the bank’s official website.
• Step 2- In order to open a PPF account, you will have to submit the following documents:
1. Identity proof such as PAN card, Voter ID card, Drivers’ license or passport
2. Two recent passport size photographs
3. Account opening form, which will be available in your preferred bank branch
4. Address proof such as Ration card, Electricity bill or Telephone bill
5. Pay-in-slip, which can be accessed from your preferred bank branch. The pay-in-slip is necessary for transferring the money to your PPF account.
While submitting documents for opening a PPF account, remember to submit original documents to your bank for verification. Make sure that all the documents are self-attested. Once you get the green light for opening your account, you will be provided with a passbook, where all your financial transactions will be updated. Your passbook is an important document, as it will be required for claiming tax exemptions under Section 80C of The Income Tax Act.
Benefits of having a Public Provident Fund
There are numerous benefits of having a PPF account. It can help make your decision a little bit easier, in case you are wondering whether you should go for one or not. The benefits of the PPF scheme are as follows:
• Tax exemptions
• Provision of extending your account after maturity
• Compound interest
• Partial withdrawals
• You can invest as low as INR 600
• Several ways for depositing money
• Trustworthy and secure, since it is a government scheme
• Lucrative for marriages, education, retirement amongst other reasons
• Helpful for long-term investments
• Easily accessible, as the facility for opening a PPF account can be found at multiple places across the country
• The policy amount you choose can never be available for the creditors and cannot be added to any court order
• Almost all the banks in the country offer this scheme, making it very easy to open an account
Going for the PPF scheme is one of the best financial decisions you can take for yourself. Moreover, the whole procedure is a very easy and uncomplicated one. So, go ahead and open an account now.
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