5 Reasons to Open a PPF Account

Planning your financial future is an essential step toward achieving long-term stability and security. Among the multiple options of investment options available, the Public Provident Fund (PPF) stands out as a reliable and tax-efficient choice. Backed by the Government of India, PPF offers guaranteed returns, long-term benefits, and tax advantages, making it a preferred option for individuals seeking low-risk investments. Moreover, combining PPF with complementary financial tools like Fixed Deposits (FD) can help diversify your portfolio and maximise your financial growth.

In this article, we will explore the key reasons to open a PPF account and how pairing it with Bajaj Finance FD can create a robust financial strategy.

The PPF is a government-backed investment scheme, making it one of the safest and most dependable options for individuals who prefer to avoid risks. Since it is supported by the Government of India, the scheme guarantees both the returns and the security of the principal amount. This assurance provides peace of mind to investors, knowing that their hard-earned money is protected from market fluctuations or economic downturns. It is particularly suitable for conservative investors who prioritise stability over high returns.

Additionally, the low-risk nature of PPF makes it a foundational element for building a secure financial portfolio. By choosing PPF, investors can ensure steady growth of their savings over time, making it a reliable choice for long-term wealth creation. With guaranteed returns and complete security of the invested amount, PPF is an ideal option for those who wish to grow their money without worrying about potential losses.

For investors seeking additional security, Bajaj Finance Fixed Deposits offer an excellent alternative. By investing in both PPF and Bajaj Finance FD, you can create a diversified portfolio that balances security and growth.

Open an FD online in minutes and grow your savings with up to 7.30% p.a. returns.

One of the most significant advantages of PPF is its tax-saving benefits. Contributions to a PPF account are eligible for deductions under Section 80C of the Income Tax Act, up to a maximum limit of Rs. 1.5 lakh per financial year. Additionally, the interest earned and the maturity amount are entirely tax-free, thanks to its exempt-exempt-exempt (EEE) status. This makes PPF an attractive option for individuals looking to reduce their taxable income while building wealth.

Waiting for your EPF withdrawal to process? 

Start an FD with a minimum investment of Rs. 15,000 and earn assured returns of up to 7.30%. Open FD.

Opening a PPF account is highly affordable, making it accessible to a wide range of investors. You can start with a minimum contribution of just Rs. 500 per year, with the flexibility to increase your deposits up to Rs. 1.5 lakh annually. This affordability ensures that even individuals with limited savings can benefit from the scheme’s long-term advantages.

Similarly, Bajaj Finance Fixed Deposits are designed to cater to investors with varying financial capacities. Start your FD investment with just Rs. 15,000 and enjoy flexible tenure options.

• Lock-in Period: PPF has a lock-in period of 15 years, ensuring disciplined long-term savings.
• Compounding Growth: The extended tenure allows your money to grow significantly through compounding.
• Tenure Extension: You can extend the PPF tenure in blocks of five years for continued financial growth and security.
• Retirement Planning: It serves as an excellent tool for building a retirement corpus.
• Funding Life Milestones: Ideal for funding major life goals, such as your child’s education or marriage.

Plan your financial milestones with Bajaj Finance FD and enjoy assured returns of up to 7.30% p.a. Invest now. 

1. Choose an Institution
   Select an authorized institution to open your PPF account. Eligible institutions include designated public and private sector banks (e.g., State Bank of India, ICICI Bank) and post offices. Some banks allow existing customers with KYC-compliant accounts to open a PPF account online via their internet banking portal, while others may require in-person submission.
2. Gather Required Documents
   Prepare the following documents:
   1. Identity Proof: Aadhaar card, PAN card, voter ID, passport, or driver’s license.
   2. Address Proof: Aadhaar card, utility bill, passport, or bank statement.
   3. PAN Card: Mandatory for PPF account opening.
   4. Passport-Sized Photographs: Typically one or two, though not always required if linked to an existing KYC-compliant bank account.
   5. Nomination Form (Form C): To designate a nominee for the account.
3. Fill Out the Application Form
   Obtain the PPF account opening form (Form A) from the bank or post office, or download it from their official website. Fill in accurate details, including your name, address, PAN number, and nominee information.
4. Submit the Form and Documents
   Submit the completed Form A, along with the required documents and nomination form, to the chosen bank or post office. For online applications, upload scanned copies of documents as per the bank’s instructions.
5. Make an Initial Deposit
   Deposit an initial amount to activate the account. The minimum deposit is Rs. 100, with a maximum annual contribution limit of Rs. 1.5 lakh (in up to 12 installments per financial year). Payments can be made via cash, cheque, demand draft, or online transfer, depending on the institution’s facilities.
6. Account Activation
   Once the application and initial deposit are processed (typically within a few working days), your PPF account will be activated. You will receive a passbook or account statement from the bank or post office. To keep the account active, a minimum contribution of Rs. 500 is required annually.

Additional Information: 

• Tax Benefits: Contributions to PPF qualify for tax deductions under Section 80C of the Income Tax Act, up to Rs. 1.5 lakh per financial year.
• Account Tenure: PPF accounts have a 15-year lock-in period, extendable in blocks of 5 years.
• Online Management: Many banks allow online contributions and account management for PPF accounts linked to internet banking.

By following these steps, you can easily open and maintain a PPF account to secure your financial future with a safe, tax-efficient investment.

Opening a PPF account is a wise decision for anyone looking to secure their financial future. Its low-risk nature, tax-saving benefits, affordability, and long-term advantages make it an indispensable part of any investment portfolio. However, to maximise your financial growth, it is essential to diversify your investments.

By pairing your PPF account with Bajaj Finance Fixed Deposits, you can enjoy the best of both worlds—guaranteed returns from PPF and higher interest rates from Bajaj Finance FD. This combination ensures a balanced portfolio that caters to both safety and growth, helping you achieve your financial goals with confidence.

Explore Bajaj Finance Fixed Deposits today and create a diversified investment portfolio. Check latest rates.