How to open a PPF account in a bank

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). Being a long-term investment, it fits into the portfolio of all investors with different risk profiles.

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

Here, we explain in two easy steps how to open a PPF account through designated banks such as State Bank of India and its subsidiary (or associated) banks, ICICI Bank, Punjab National Bank, etc.

Step 1: A PPF account cannot be opened at any bank branch. 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.

Note:

1. Carry original documents to the bank for verification
2. Documents should be self-attested
3. Once the account is opened, a PPF account passbook is issued to you. All transactions on your PPF account are updated in this passbook. The passbook is required for claiming tax deduction under Section 80C of IT Act.

Opening a PPF account at a bank is lot more convenient than through a post office. This is because a PPF account with a bank facilitates online fund transfer from your savings account to your PPF account, the same way you make online funds transfer to other bank accounts.

An important point to note regarding online transfer is that the payee name should match the name as mentioned in the PPF account passbook.

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