Best Way to Invest Provident Fund

Discover the Optimal Approach for Provident Fund Investments in This Comprehensive Guide.
4 mins
25 September 2023

How to Invest in PPF Online?

To open a PPF account online, you must have a savings account with a bank or post office, and your account should be enabled for mobile banking or internet banking.

While the process for online application may vary slightly between banks, the core steps remain consistent:

  1. Log in to your bank's mobile banking or internet banking platform.
  2. Choose the "Open a PPF account" option.
  3. Select "Self Account" if you're opening an account for yourself or "Minor Account" for a minor.
  4. Complete and verify all required details in the application form.
  5. Specify the annual deposit amount for your PPF account.
  6. Set up standing instructions for automatic transfers from your savings account to the PPF account at your preferred intervals.
  7. Submit your application and receive an OTP on your registered mobile number for transaction authorization.
  8. Provide the OTP to confirm your identity.

After completing these steps, your Public Provident Fund account will be created. You will receive an on-screen confirmation message, and a confirmation email will be sent to your registered email address.

How to Open a PPF Account Offline?

Here is the procedure for opening a PPF account through offline means:

  • Complete the application form for a PPF account using all the necessary information.

  • Submit the duly filled form along with all the required documents to your chosen post office or bank branch where you intend to open the PPF account. It's important to note that having a savings account with the same post office or bank branch can simplify the process of opening a PPF account.

Upon successful completion of the documentation process and the initial deposit, you will be provided with a PPF account passbook. This passbook will contain essential details, including your PPF account number, branch name, account holder's name, and more.

What are the Eligibility Criteria for Investing in Public Provident Fund?

Eligibility for opening a PPF account includes:

  • Residency in India is a prerequisite.
  • An individual is allowed only one PPF account, except when the second one was initiated as a minor account.
  • Minors can open a PPF account with appropriate age verification.
  • HUFs can continue operating PPF accounts opened before May 13, 2005, until they reach the 15-year maturity period (without extension options).
  • NRIs can operate their PPF accounts if they initiated them while residing in India. They can do so for 15 years without extension options.

How much can you invest in PPF in one year?

PPF allows a minimum annual deposit of Rs. 500, with a maximum limit of Rs. 1.5 lakh in a financial year. You can choose to make a lump sum deposit or monthly contributions, as long as the total amount doesn't exceed Rs. 1.5 lakh.

What is the Right Time for Investing in PPF?

The earlier you start investing in PPF, the more you benefit from its long-term compounding power. Ideally, the beginning of the financial year (April) is a great time to invest, as it maximizes the interest earned over the year. However, you can open a PPF account at any time during the financial year.

Why you should invest your provident fund savings in a fixed deposit

Employee’s Provident Fund, denoted as EPF or PF, forms a significant part of the retirement funds you get. Under this scheme, the employee contributes 12% of their basic pay + DA towards the PF. The employer matches this amount, so it is another 12% of the employee’s (basic Salary + DA).

However, the actual contribution by the employee goes towards the EPF. The employer’s contribution is divided between EPF and EPS.

The Employee Provident Fund Organization (EPFO) makes a provision to allow the employee to contribute more than the mandatory 12% towards the EPF. As a Voluntary Provident Fund (VPF), the excess amount is managed separately, earning interest. On retirement, the employee gets the saved up EPF and VPF funds plus the interest earned.

It is best to keep this corpus secure for your future. Make some safe investments in growth instruments to keep up with inflation. You can use fixed deposits and other savings to secure a part of your PF funds for assured returns. Bajaj Finance Fixed Deposits offer great interest rates backed by CRISIL’s and ICRA’s stable ratings, thus ensuring your investment is safe. You can also allocate part of your funds to some capital growth options depending on your risk appetite.

Visit the Bajaj Finance Contact Us page to talk to our representative directly or check Bajaj Finance FAQ page to know more.

Frequently Asked Questions

What will happen if an individual fails to deposit any amount in a PPF account for one or more financial years?

In case an individual fails to deposit the minimum amount of ₹500 at the end of a financial year, they will incur a penalty of ₹50 for each year of default.

How can an individual extend the tenure of a PPF beyond the maturity period?

Investors have the option to prolong the tenure of a PPF investment beyond its maturity period for a block duration of 5 years by submitting Form 4 within 1 year from the maturity date.

Can an investor opt for a loan facility on a PPF investment?

Yes, investors can opt for a loan facility against their PPF investment, typically from the third financial year up to the sixth financial year of account opening.


As regards deposit taking activity of Bajaj Finance Ltd (BFL), the viewers may refer to the advertisement in the Indian Express (Mumbai Edition) and Loksatta (Pune Edition) furnished in the application form for soliciting public deposits or refer
The company is having a valid Certificate of Registration dated March 5, 1998 issued by the Reserve Bank of India under section 45 IA of the Reserve Bank of India Act, 1934. However, the RBI does not accept any responsibility or guarantee about the present position as to the financial soundness of the company or for the correctness of any of the statements or representations made or opinions expressed by the company and for repayment of deposits/discharge of the liabilities by the company.

For the FD calculator the actual returns may vary slightly if the Fixed Deposit tenure includes a leap year.