Public Provident Fund: Benefits, documents required, eligibility criteria and application process; all you need to know

Public Provident Fund: Eligibility criteria

The Public Provident Fund (PPF) scheme is designed to be inclusive and accessible to many Indian citizens. This focus on financial inclusion is evident in the eligibility criteria. Only Indian residents can open new PPF accounts, although existing accounts held by NRIs (Non-Resident Indians) remain valid until maturity. No minimum age restriction allows parents or legal guardians to open accounts for their minor children. This approach encourages a culture of saving and financial planning from a young age. However, it’s important to remember that PPF emphasises individual responsibility. The scheme only allows for a single account per person, so you cannot have joint accounts or open multiple accounts in your own name.

Public Provident Fund: Required documents

When signing up for a PPF account, you typically need just a few documents to start. The first step is to grab the PPF Account Opening Form at most post offices or authorised banks. Next, you’ll need to prove your identity. An Aadhaar card is the easiest option, but another valid government ID will also work. Don’t forget to bring a recent passport-sized photograph for your account records. Finally, be prepared to show proof of your address. This might involve a utility bill like an electricity statement or any other document that verifies your residency (requirements can vary depending on your location).

Public Provident Fund: Application process

Here is the complete guide on how to apply for a PPF account.

Choose tour account opening location

• Post Office: A convenient option for many people, with many post offices offering PPF account opening services.
• Authorised Bank: Not all banks offer PPF accounts. Check with your preferred bank to see if they provide this service.

Complete the application process

• Fill Out the Form with Care: Meticulously complete the PPF Account Opening Form, ensuring all details are accurate and error-free.
• Attach Required Documents: Compile all the documents mentioned earlier and securely fasten them to the finished application form.
• Make Your Initial Deposit: Head to the counter and deposit the minimum amount of ₹500 (or more) to activate your account. You’ll receive a passbook or account statement as confirmation of your deposit.

Account activation and verification

• Verification and Processing: Once you submit your application and documents, the post office or bank will verify everything and process your account creation.
• Account Activation Notification: You might receive an SMS or email alert informing you that your PPF account is now active and ready for use.
• Making Future Contributions: After activation, you can add funds to your account through various methods like cash deposits at the counter, cheque payments, or even online transfers (if the specific post office or bank offers that option).

Public Provident Fund: Contribution limits and interest rates

• Flexible Contribution Options: PPF caters to a wide range of income levels by allowing contributions as low as ₹500 per year and capping the maximum at ₹1.5 lakh annually. This flexibility lets you adjust your contributions based on your budget.
• Competitive Interest Rates: The government sets interest rates for PPF quarterly. These rates are typically higher than what you’ll find in traditional savings accounts. This makes PPF an appealing option for those looking to grow their wealth over the long term.