How Do I Apply for a Public Provident Fund (PPF) Account?

Posted by Nisha Scott on May 25th, 2021

The Public Provident Fund or PPF scheme is a government-backed savings initiative that promotes small savings and investment amongst all citizens. The scheme was started by the National Savings Organisation in 1968, it is one of the most popular savings schemes among risk-averse investors.

It helps you reap assured returns and earn interest at an attractive rate of 7.1% that are fully tax-exempt. If you have a long investment horizon of up 15 years, PPF is an ideal option to keep your funds safe. 

Eligibility for opening a PPF account

• You must be an Indian resident.
• You can open only one PPF account.
• You can open a PPF in the name of a minor child by providing legal age proof.
• You must make a minimum deposit of Rs. 500 per financial year to open a PPF account and to keep the account active. The maximum amount you can deposit in your PPF account is Rs. 1.5 lakhs in a financial year.
• You can open a PPF account with any of the designated banks of your choice. If you are an existing ICICI Bank customer, you can instantly open your PPF account without any documentation.

Steps to Apply for a PPF Account

You can open a PPF account either online or offline. Let us look at the steps involved in each of the methods.

Online Method

To open a PPF account, you must have a savings account with the participating bank or post office and must have enabled internet banking for auto-debit of the contribution amount. If you don’t have a bank account, you can open a savings account with ICICI Bank and then follow the steps that even existing customers can refer to:

1. Log into your account through Internet banking with your ID and password or registered mobile number.
2. Click on the “My Accounts” tab and then go to “PPF accounts.”
3. Select and click on “Open Now.”
4. Next, you will see an application. Fill in the relevant details.
5. Verify personal details such as address, nominee data need to need to be verified and then click on “Proceed.”
6. Verify your Aadhar Number. If your bank account is linked to your Aadhar card, click on “generate OTP.”
7. There is also the option of e-sign with Aadhar OTP to open PPF online.
8. Your PPF is now created online.

Once your PPF account is created, you will see a message displayed on the screen to confirm the same. You will also receive an email with details of the account, including the PPF interest rate, contribution amount, contribution interval, maturity amount, etc. 

PPF account with ICICI Bank has benefits such as online fund transfers available from savings account to PPF, standing instruction facility and option to review statements online. 

Offline Method

If you are not comfortable opening a PPF account online, you can opt for the offline method. To start open an account offline, you must visit the nearest ICICI bank branch where you want to open the account and follow the below process –

1. Fill the PPF application form with the necessary details
2. Comply with the documentation process and submit the same along with the application form
3. Pay the initial contribution amount
4. Once you pay the amount, your account will be created

Invest in a secure future with PPF

Investing in a PPF account is an excellent way to build a corpus for your retirement goals. The high PPF interest, low-risk returns and tax benefit make it an ideal investment option for all.