PPF or Public Provident Fund is a long-term fixed-income savings scheme backed by the Government of India. Axis Bank offers the customers this long term investment option and provides good returns as well. Furthermore, an Axis Bank PPF account offers you tax benefits under Section 80C of the Income-tax Act and hence acts as a tax-saving instrument. The minimum investment amount in the PPF account starts from as low as Rs. 500 and the maximum investment is Rs. 1,50,000 in a financial year. The PPF account has a mandatory tenure of 15 years and the account cannot be closed prematurely except on certain grounds. However, the depositor is allowed to make a partial withdrawal after five years. One can withdraw up to 50% of their PPF balance as at the end of the preceding financial year.
Key Features of Axis Bank PPF
The Axis Bank provident fund account comes with a plethora of features and benefits. Some of these features and benefits are:
- Axis Bank offers tax benefits under section 80C of the IT Act for deposits made in this account in a financial year.
- The lock-in period of the PPF account is 15 years, but it can be extended in a block of 5 years during which no contribution needs to be made towards your PPF account.
- The scheme is backed by the government and hence is a very low-risk investment instrument.
- The interest is calculated between the 5th and the last day of each month and is calculated on the lowest balance you maintain during that period.
- Loans can also be availed against the provident fund account
- The account can be operated online via the bank’s website and give instant access to things like statements of accounts and balance information.
- This PF can also be opened in the name of minors by their parents/guardians.
- The initial deposit amount starts from as little as Rs. 500 in a year in your PPF account.
How to Open an Axis Bank PPF Account Online?
At present Axis Bank PPF account online opening facility is not available. The PPF offered by Axis Bank cannot be opened online but can be operated online. To open the account you will need to fill out the PPF account opening application form and submit it at an Axis Bank branch along with certain supporting documents. The following are the steps to open a PPF account in Axis Bank:
Axis Bank PPF Account Opening Form: The account opening form is available to download online and is very simple to fill. It has 5 sections which ask for the following information:
Personal details: This will include personal details including your name, date of birth, marital status, employment status, PAN card details, etc.
Minor declaration: As the name implies, this is the section used in case the applicant is a minor and it needs information and declarations by the legal guardians of the child.
Address details: Here you need to enter the details regarding your permanent and communication address and provide other contact details.
Initial Subscription Details: This is the section where you inform the bank about how you are going to make an initial contribution to the PF. This can be done via cheque or by allowing the bank to debit the indicated amount from your bank account.
KYC: In this section, you need to fill the KYC (Know Your Customer) requirements by mentioning the details of the documents you are submitting.
The rest of the form asks for the agreement to the terms of the PPF and signatures to validate the application form.
How to Access your Axis Bank PPF Account Passbook?
Axis Bank allows the depositors of the Axis Bank PPF account to access their Axis PPF Passbook and get the details of all the transactions of the account. Bank account passbook can be accessed both in online and offline ways.
How to access your PPF Account Passbook Online:
- To avail online services, you need to link your Axis PPF account with your Axis Savings/current account
- Firstly, you need to activate Net-banking for your account
- Log-in to the online banking website with your credentials
- Now, go to the ‘PPF Account Balance Check’ option to access your passbook
- The report can be downloaded and printed as well
How to access your PPF Account Passbook Offline:
- Go to your nearest Axis bank branch
- Get your PPF passbook updated manually and check all the transactions easily
How to transfer Axis Bank PPF Account?
PPF account transfer can be done in two ways – Either one can transfer within the same bank or Post Office and Transfer from Post office to Bank or vice versa
PPF Account Transfer within the same Bank or Post Office
- Write and sign an application stating the reason for the transfer
- Details to be mentioned – Branch Name, Address & IFSC Code of the current branch and the branch to which it is supposed to be changed
- The application must be signed by the account holder
- Submit the application to the current bank branch where the account is held
PPF Account Transfer from Post Office to Bank or vice versa
- Go to your the bank branch/post office where the account is currently held along with the PPF passbook
- Submit an application regarding the transfer specifying the full address of the post office/bank’s branch where you wish to transfer your PPF account with your signature
- Your request is processed and the required set of documents are shared with the changed branch
- Afterwards, you need to submit a fresh account opening form along with all the necessary documents to open the account at the new branch/post office
- Please note that the time taken for the transfer to process is about 30 days
Axis Bank PPF Account – Frequently Asked Questions
Ques. What is the interest rate provided by Axis Bank PPF account currently?
Ans. The Axis Bank PPF interest rate of 2020 is 7.1%.
Ques. What is the maximum number of contributions that I can make in a PPF account in a year?
Ans. A maximum of 12 contributions can be made in a year, which is not related to the months.
Ques. Can a PPF account be closed before the lock-in period of 15 years?
Ans. Yes, but only after the account has completed 5 financial years based on the following grounds:
- Higher education of your children.
- Serious illness of your spouse, children, or yourself.
Ques. Can NRIs invest in PPF?
Ans. As per a recent notification issued by the Government of India, NRIs are no longer allowed to open a new Public Provident Fund (PPF) account.