Sunday, 27 January 2019

PPF Account in HDFC Bank | Public Provident Fund Account

PPF Account in HDFC Bank | Public Provident Fund Account

PPF Account in HDFC Bank | Public Provident Fund Account

PPF (Public Provident Fund) scheme is a very popular long-term investment scheme introduced by Central Government in 1968 to mobilize small savings. PPF scheme offers you risk-free returns with attractive interest rates which are fully exempted from tax. In this post, let’s take a look at the PPF Account in HDFC Bank.

The government of India has expanded the PPF scheme from post offices, nationalized ban to private banks to ensure accessibility of the PPF scheme to more people in the country. HDFC bank offers the facility to open a PPF account. PPF account opening in HDFC bank is preferred in India as it offers many benefits to its PPF customers. Let’s know more details about PPF account through HDFC bank.



Benefits of opening a PPF account in HDFC Bank

Following are the benefits of opening a PPF account in HDFC bank:
1. You can transfer money online from the linked savings account.
2. You can set standing instruction facility online.
3. You can view your PPF account statement online.



Eligibility to open a PPF account in HDFC Bank

A PPF account can be opened by any resident individuals. One can open only one PPF account and declare the same at the time of account opening. However, an individual can also open a PPF account on behalf of a minor of whom he is a guardian. A joint PPF account is not allowed. NRIs are not eligible to open a PPF account. If a PPF account holder becomes NRI then his/her PPF account will be deemed closed and the said PPF account will earn interest at the rate applicable to the Post Office Savings Account.



How to open PPF Account in HDFC Bank

To open a PPF account in HDFC bank, you need to visit nearest PPF designated HDFC bank branch only as you can’t open a PPF account at all HDFC bank branches. Fill the PPF account opening form and submit it with required documents such as Id proof, address proof, and two photographs. Supporting documents needs to be self-attested. Also, carry original documents for faster verification and process. You will be issued a PPF account passbook from HDFC bank after opening your PPF account.

Features of Public Provident Fund account

Following are the features of PPF account:
1. The PPF account offers an attractive interest rate that is fully exempted from tax under Sec. 80C of Income Tax Act.
2. PPF scheme is a good long-term investment for 15 years.
3. A PPF account can be extended for a block of 5 years after maturity.
4. Minimum deposit amount of Rs 500/- and maximum of Rs 1,50,000/- in a financial year.
5. If the minimum amount of Rs 500/- is not deposited in any financial year, a penalty of Rs 50/- will be charged.
6. Deposits can be done the maximum in 12 transactions.
7. Passbook will be issued to customers.
8. The PPF account has an option for a loan facility. Loan facility can be availed anytime between third financial year to sixth financial year i.e. From third financial year up to end of fifth financial year.
9. Partial withdrawals are allowed from PPF account. 50% of the balance can be withdrawn after the expiry of 5 years, excluding the first financial year.



How to transfer your existing PPF account to HDFC Bank

If you want to transfer your existing PPF account from post office or other designated bank to HDFC bank then you need to submit a PPF transfer request in the post office/bank branch where you have your PPF account. The concerned post office/bank branch will then send your PPF account related details and documents to the HDFC bank branch address which is provided by you in your transfer request.




Also read: Money Saving Tips

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PPF Account in HDFC Bank | Public Provident Fund Account

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