Open a PPF Account and Enjoy EEE Status

The PPF, or Public Provident Fund, is one of the most popular long-term investment options offered by the Central government for Indian residents.

 The PPF is one of the rare investments that enjoy the EEE status (exempt on investment, interest earned and maturity proceeds)

One can open a PPF account either directly through a post office or through a bank

Wh Can Open PPF A/c?
Individuals who are residents of India are eligible to open an account under the Public Provident Fund scheme. A PPF account may be opened under the name of a minor by his/her legal guardian. However, each person is eligible for only one account under his/her name.

Investment in PPF
A minimum yearly deposit of Rs. 500 is required to open and maintain a PPF account, and a maximum deposit of Rs. 1,00,000 can be made in a PPF account in any given financial year

Interest Earnings

The current interest rate effective from 1 April 2013 is 8.70% Per Annum(compounded annually). Interest is calculated on the lowest balance between the close of the fifth day and the last day of every month

Tenure of PPF A/c
The minimum tenure of the PPF account is 15 years, which can be further extended in blocks of 5 years each for any number of blocks. The extension can be with or without contribution

Pre-mature Withdrawal from PPF
Pre-mature withdrawals can be made from the end of the sixth financial year from when the PPF commenced. The maximum amount that can be withdrawn pre-maturely is equal to 50% of the amount that stood in the account at the end of 4th year preceding the year in which the amount is withdrawn or the end of the preceding year whichever is lower.

Nomination Facility
Nomination facility is available. In the case of joint nominees, it is possible to allocate the percentage of benefits to each nominee

How to open a PPF account in a bank

A PPF account cannot be opened at any bank branch such as State Bank of India and its subsidiary (or associated) banks, ICICI Bank, Punjab National Bank, etc.
 It can only be opened at designated bank branches. You can get the list of designated bank branches at the bank website or find out at your bank branch itself.

Step 2: Submit the required documents mentioned below:

1. Account opening form available at the designated bank branch
2. ID proof, which can be PAN card, driving licence, voter ID card, or passport
3. Address proof, which can be telephone bill, electricity bill, or ration card
4. Two recent photographs
5. Pay-in slip, which will be available at thebank branch to transfer amount to your PPF account.