HDFC PPF Account
HDFC PPF Account
HDFC (Housing Development Finance Corporation) Bank Limited is India’s largest private sector banking company offers Public Provident Fund (PPF) Account through HDFC internet banking services. Public Provident Fund Account was launched by the Central Government to mobilise small savings and investment so that investors get a tax benefit with reasonable interest over a period of time. A PPF account that can be opened by individuals to build an investment corpus with tax benefits. HDFC bank offers to its customers that the PPF account can be opened offline and online. In this article, we look at the procedure for opening of HDFC PPF Account Public Provident Fund Account in detail.
To know more about HDFC Bank Current Account
Public Provident Fund Act, 1968
As per the Public Provident Fund Act, 1968, the interest rate is compounded annually and fixed by the Ministry of Finance, Indian Government. Subscription to the Public Provident Fund scheme qualify for deduction from the taxable income of the investor for income tax purpose within limits laid down under section 80-CC of the Income Tax Act. All subscriptions made under section 4 of Public Provident Fund Act would bear interest at such rate as may be declared by the Central Government in the Official Gazette. The PPF scheme is operated through Nationalized banks and Post Office through its authorised branches as per Government of India (GOI) announcement.
Benefits of Public Provident Fund Account
The below listed are some of the benefits and features of opening a Public Provident Fund Account with the HDFC Bank.
- The interest that is earned is fully exempted for Income Tax purposes under section 80C.
- It offers tax-free returns, exempted from wealth tax and deduction in the deposited amounts.
- The minimum amount deposited can be as low as Rs. 500 per annum.
- The validity of the account is for 15 years. The entire amount deposited can be withdrawn on maturity.
- The amount of maximum that can be deposited is Rs. 1,50,000 per annum.
- As per the extant rules, the investor should not deposit more than Rs. 1,50,000 as the excess amount will not be charged for interest and also the investor will not be eligible for a rebate under the income tax act (Section 80C)
- One has the benefits of accessing the PPF account online with HDFC Bank Internet banking. The below listed are the following benefits offered.
- You can fill the PPF account opening application form through online.
- Once you have logged in to your PPF account, you can also verify/view your PPF account under “My Accounts” section.
- You can view, print mini and detailed statement online.
- Also, it allows transferring funds from a linked savings bank account.
Loan against Public Provident Fund Account can be availed between the 3rd and 6th years of account opening. The maximum amount that can be earned in such cases will be up to 25% of the account balance available at the end of the 2nd year. The PPF loan interest rate in HDFC is 2% over the applicable PPF interest rate.
The below following are the eligibility criteria for opening the HDFC bank PPF Account.
- Any resident Indian individual may open the PPF account in his or her name except the account opened on behalf of a minor.
- On behalf of a minor, the account can be opened by their parents either by mother or father. However, both father and mother cannot open the PPF account for the same minor.
- There is no age limit specified for opening the PPF account in HDFC bank.
- NRIs (Non-Resident Indians) cannot open HDFC Bank PPF account. However, if a The PPF account opened by the resident Indian becoming NRI such an account may be continued till maturity.
- The number of minor accounts that are allowed is limited to one for each minor child.
- Grandparents cannot open this PPF account on behalf of a minor grand Children. In the case of parents death, the PPF account can be opened by the grandparents as guardians on behalf of the Grandchild.
- The individuals cannot open the joint account. Also, a PPF account cannot be opened by the Hindu Undivided Family (HUF).
Documents Required for HDFC PPF Account
To open a Public Provident Fund account in HDFC bank, the following are the list of self-attested documents to be submitted:
- Customer must be an existing HDFC Bank savings account holder.
- Prescribed Application Form
- Identity Proof: PAN Card, Aadhar, Driving License, Voter ID card, etc.
- Address Proof: Aadhar, Valid Passport, Utility bill, Property tax bill, etc.
- Two passport size colour photographs
- Nomination form if the applicant is minor
Opening Offline PPF account
Once all the documents mentioned above are self-attested and valid, you may open the Public Provident Fund Account in HDFC by stepping into any branch.
Once the PPF account is started, you can collect your PPF account passbook from the bank branch.
Online Registration Procedure
The PPF Account can be opened through online using the bank’s digital channels of the internet and mobile banking. Kindly follow the below procedure to open the HDFC PPF Account.
- Customer must be an existing HDFC Bank savings account holder. A customer should have must have net-banking / mobile banking enabled for respective account.
- ‘Aadhaar’ number should have linked to the customer’s existing account.
- The Mobile number which is linked to your Aadhaar should be active, to receive an OTP which is used to e-sign / e-authorise the opening of the PPF account instantly
Login to Portal
Step 1: Firstly, you must log in to their retail internet banking account.
Step 2: Then you need to click on the ‘Public Provident Fund’ banner account under the ‘Accounts’ section.
Step 3: Now you are required to confirm auto-populated details such as PAN, address among others, and then you have to enter an initial deposit amount.
Step 4: After entering the amount, you can also choose to add more money to your account through a monthly standing instruction.
Step 5: Fill the application form with all requested details and then click on the submit button.
Step 6: Now, you have to enter your Aadhaar number followed with the OTP confirmation of your Aadhaar to activate the PPF account opening.
Step 7: After the above process, the account will be created instantly with the account number that is displayed on the screen. The statement of a transaction, as well as the annual statement of the PPF account, is available on internet banking.
Step 8: Once the online PPF account is up and running, you can collect your PPF account passbook from the bank branch.
Now, you can transfer funds directly from your savings account to your PPF account. You can also open a PPF Account by visiting the nearest HDFC Bank Branch.
PPF Account Balance Check
The below following are the procedure to guide you to check the PPF account balance:
Step 1: You must link your existing HDFC bank savings account or current account with the PPF account and also ensure to enable that your internet banking facility is enabled.
Step 2: Now you must log in to your HDFC account using the banking credentials to check/verify your HDFC PPF Account Balance online.
You can also choose the alternative method (offline) to check your PPF account balance for which you need to update the PPF passbook, and it will display the details of all debit and credits made in your account.
Withdrawals from the Funds
One withdrawal during any one year at any time after 6 years. The withdrawal amount is limited to 50% of the balance amount at credit at the end of the 4th year directly preceding the year in which the amount is withdrawn or at the end of the previous year whichever is lower.
Other features of online PPF Account with HDFC Bank are:
- Transfer funds online from linked Savings Account.
- Standing Instruction facility can be set online
- View account statement online
The account can be extended for a period of five years after maturity.