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HDFC PPF Account

Public Provident Fund is a savings-cum-tax-saving investment instrument, backed by the government of India. The scheme can be opened for a period of 15 years, with a 5-year extension that can be availed any number of times. The interest rate on PPF account is fixed by the government on a quarterly basis. A PPF account can be opened at a designated post office or a bank branch. A few banks offer users the facility of opening the account online. HDFC is among the banking institutions that enable users to open an account through the online route.

(Note - All the information contained in this page has been sourced from the official website of HDFC Bank.)

Features of HDFC PPF Account

The features of HDFC PPF account are as follows:

  • Long term investment for a tenure of 15 years
  • Attractive interest rate of 7.9%
  • Account can be extended for a block of 5 years post maturity
  • Minimum deposit amount is Rs. 500, while the maximum is Rs. 1,50,000 in a financial year
  • A penalty of Rs. 50 is applicable if the minimum amount of Rs. 500 is not maintained in any financial year
  • Deposits can be made in a maximum of 12 transactions
  • Passbook shall be issued to customers
  • Option to make partial withdrawals
  • 50% of the balance can be withdrawn after 5 years (excluding the first financial year)
  • Loan can be taken between the third financial year to the sixth financial year, i.e. from the third financial year up to the end of the fifth financial year

Source: Official website of HDFC Bank

Benefits of HDFC PPF Account

The benefits of opening a PPF account with HDFC are:

  1. The element of risk is low as PPF is government-backed.
  2. PPFinvestments come under EEE (exempt-exempt-exempt) category. This means that the principal invested, the interest earned and the maturity proceeds are all tax exempt. The amounts deposited in spouse’s or child’s PPF account are also tax exempt.
  3. Loans can be taken against the PPF account from the third financial year up to the end of fifth financial year.

HDFC Bank PPF Account Interest Rates

InstrumentInterest rate (%) from October 1, 2019
Public Provident Fund7.9

The PPF interest rates over the years have been as follows:

PeriodPPF Interest Rates
From 1st Oct 20197.9%
1st Jul 2019- 30th Sept 20197.9%
1st Apr 2019 - 30th Jun 20198%
1st Jan 2019 - 31st Mar 20198%
1st Oct 2018 - 31st Dec 20188%
1st Jul 2018 – 30th Sept 20187.6%
1st Apr 2018 - 30th Jun 20187.6%

Note - The above-mentioned data has been sourced from different news sites.

How to Open HDFC Bank PPF Account

If an individual is already an HDFC customer, he or she can open a PPF account digitally i.e. through the web portal of HDFC Bank. Here, the user must hold a savings account with the bank and have net-banking/mobile banking enabled for his or her account. The individual’s Aadhaar number also needs to be linked with the account. Lastly, the PPF applicant must ensure that the mobile number linked to Aadhaar is active, so as to receive an OTP, which is used to e-sign/e-authorise the opening of the PPF account. Those individuals who are not clients of HDFC but want to open a PPF account via the bank can go to the nearest branch office and place a request to open a PPF account. To open a PPF account, an applicant will need to submit the following documents:

  • An identity proof
  • A proof of residence
  • Pay-in-slip
  • Passport size photographs
  • Nomination form

Eligibility Criteria for Opening HDFC Bank PPF Account

The eligibility criteria for opening a PPF account with HDFC Bank are:

  • A PPF account can be opened by resident individuals and individuals on behalf of minors of whom they are guardians.
  • No joint PPF accounts are permitted.
  • NRIs are not allowed to open a PPF account. However, a resident that becomes an NRI in the 15 years' tenure, prescribed under Public Provident Fund Scheme, may continue to subscribe to PPF till its maturity, on a non-repatriation basis.
  • An entity can open only one PPF account.Source: Official website of HDFC Bank

FAQs on HDFC Bank PPF Account

Can I open PPF account in HDFC Bank?

Yes, HDFC Bank provides users the facility of opening a PPF account through their web portal.

How can I close my HDFC PPF account?

A PPF-account holder can make partial withdrawals from the 7th financial year. The individual can close his or her account and make a full withdrawal after the 5th financial year for medical treatment of severe or life-threatening conditions for self and family, or for higher education. The subscriber will have to submit supporting documents, as required, along with the closure or withdrawal request form.

How to open PPF account through HDFC NetBanking?

To open a PPF account, an individual will need to complete the following steps:

  • Log into HDFC Bank NetBanking.
  • Under accounts, select the option ‘Public Provident Fund’
  • Confirm the details reflected in the next screen and input the sum to be deposited
  • Choose whether to add a nominee, and press on submit
  • If Aadhaar is already linked to account, the form shall be submitted. The user shall receive a message that the account will be opened in one working day.
  • In case Aadhaar is not linked, the user needs to first link it to complete the process.
  • Once a PPF account is opened online, the individual can transfer funds directly from his or her savings account to PPF account
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