Public provident Fund (PPF) account is helpful for tax saving as investment in this is eligible for tax rebates. This scheme is also useful for those, who do not have the advantage of getting pension in the old age. A PPF account can be opened in State Bank of India and in a few nationalized banks and in the post office. It is a scheme given by the government of India for every citizen of India.
Criteria of eligibility
- PPF account can be opened by any person. Whether he is salaried, senior citizen or pensioner, business man or self-employed human-being, he is eligible to open a PPF account.
- The account of a minor can be opened. Either one of his parents can open and operate his account on his behalf.
- Non resident Indians (NRIs) cannot open and operate a PPF account. They are eligible only if someone opened the account during his stay in India and then he migrated to some other country. In this case, he can operate the account for a period of 15 years.
What is the procedure of opening a PPF account?
- First of all, you will locate the nearest post office, where the PPF account can be opened.
- You can collect the account opening form from the post office or login to download the application form from this link.
- Fill up the form with the appropriate personal information. Avoid giving any incorrect information as this is a long term deposit scheme.
- You need to attach a passport size photograph along with the necessary documents.
- The documents needed are as follows;
- Twp photographs (Passport sizes)
- Identity proof ( Voter Id card or Passport)
- Proof of address (Ration card or Electricity Bill)
- Xerox –copy of Pan Card
- All the documents will be verified as you submit the application form.
- The minimum amount for opening the account is Rs 500 and maximum can go up to Rs 70,000.
- As you deposit the application form duly filled-in in every respect, you will be provided with a passbook. The passbook is very similar to the bank passbook, which will contain your name, branch name, account number and record of all the transactions made in the account in the long run.