Articles

How to Track PPF Account Online?

by Richa Sharma Finance Expert

The Public Provident Fund Scheme is an established saving scheme fully guaranteed by the Central Government. The invested principal and the interest grossed over the course of 15 years are exempted from taxation.

A yearly deposit of at least 500 Rs is a prerequisite in order to open and maintain a PPF account and the maximum one can deposit in one’s PPF account is 1.5 lakhs every financial year. Any sum deposited exceeding a financial year’s 1.5 lakh deposit limit will not warrant any interest.

As is the case for opening bank accounts for minors, a guardian is mandatory for opening PPF accounts for minors.

The rate of interest for PPF varies every quarter and the Ministry of Finance declares the rates of interest. The risk of default is very low owing to the fact that it’s government backed.

A PPF account goes a long way for retirement planning. All the features PPF offers like tax free returns and long tenures make it an ideal choice.

Lock-In Period

The lock-in period for PPF is fifteen years and the full amount can be withdrawn post the maturity period. Sans maturity however, withdrawals can be made from when the seventh financial year starts and there’s a cap on the withdrawal if processed before maturity.

Eligibility to Open a PPF account

· One person cannot have more than one PPF account. Only resident Indians of age 18 years and above can open a PPF account. There are no restrictions as to the maximum age.

· As stated before, minors need to have a guardian in order to be able to open a PPF account. Grandparents are not allowed to open a PPF account using the names of their minor grandchildren.

· A PPF account cannot be opened for Non-resident Indians. This restriction ahs some caveats however. A resident of India who has a PPF account can continue maintaining and using their account if they were to leave the country and acquire non-resident status. This can only be until the account reaches maturity however. Another restriction applying to NRIs is that they cannot extend the tenure of the PPF account once it reaches maturity.

· Effective from 2005, an HUF (Hindu Undivided Family) is not allowed to open a PPF account. Those who opened a PPF accounts before May 2005 however, are allowed to continue using the account until it attains maturity. Such instances aren’t allowed extensions either. An HUF isn’t allowed to apply for a PPF account by proxy either.

· As is the case for NRIs, foreigners are not allowed to open a PPF account.

Two Ways to Check Your PPF Account Balance

· Checking PPF balance offline at the post office: Checking your PPF balance online may not be feasible if you don’t have net banking facilities or if the particular branch doesn’t support net banking. So the next best alternative is checking the PPF balance at the post office.
You will be required to visit the post office branch where you had your PPF account opened and check your account balance with the passbook that you were issued when you opened the account.

· Checking PPF balance online: As mentioned before, you will be able to check your PPF account balance if the account was opened at a bank and net banking facilities are available.
You will need to log in to your account on the bank’s website using your login credentials. You will be able to view the details of every deposit you’ve made till date and the interest accrued on your account balance.
If you have a savings bank account in the bank as you do your PPF account, you’ll be allowed at some banks to link your PPF account with your savings account in another bank.


Additionally, you can also transfer funds into your PPF account from your savings account. There are provisions for you to be able to give permanent instructions for transfers to be made from your savings account to your PPF account. These provisions are in place to guarantee that you not default on the minimum stipulated deposit every year.

If you are, as of yet, unregistered for net banking facilities at your bank, it is recommended you register for the feature without further ado. Registration at your respective bank would set you up with the necessary login credentials to facilitate net banking.

Net banking helps you to check your balance, pay bills, and view your bank statement. It enables you to apply for loans and carry out a whole range of other baking transactions online without your having to be physically present at the bank.

Net banking does away with a lot of dreary paperwork and awaiting your turn in a long queue and lets you perform these activities at your convenience with increased expediency.


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About Richa Sharma Advanced   Finance Expert

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Joined APSense since, September 13th, 2018, From NEW DELHI, India.

Created on Sep 20th 2018 01:24. Viewed 576 times.

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