HDFC PPF account is one of the popular long-term investment schemes that provide substantial returns and tax benefits as well. This scheme is backed by the Government of India and also offers an attractive interest rate with ensured safety. The returns are fully exempted from tax under Section 80C of the Income Tax Act. Depositors can save tax in the range of Rs. 500 to a maximum Rs. 1,50,000 in a financial year and can also get added facilities such as loans against the deposit, partial withdrawal and the extension of your account. PPF accounts can be opened with various leading banks including top private sector banks and post offices as well.
Key Features of HDFC Bank PPF
- HDFC bank PPF interest rate is 7.1% that is fully exempted from income tax under section 80C
- Long-term investment of 15 years which inculcates the habit of savings in depositors
- The deposit amount can start from as low as Rs.500 and go up to a maximum of Rs.1,50,000 in one financial year
- Deposits in PPF can be done in a maximum of 12 transactions
- A loan can be availed between the 3rd to the 6th financial year against your HDFC PPF deposit
- Partial withdrawal facility can be availed from the 5th financial year onwards
- The account can be extended in a block period of 5 years after the maturity period
How to Open a PPF Account Online in HDFC?
You can open a PPF account online anytime, 24X7 if you are an HDFC customer. The process is paperless and hassle-free. However, there are some important points that need to be kept in mind before opening an online PPF account in HDFC:
- You must be an existing HDFC Bank savings account holder.
- You must have an active net-banking/ mobile banking enabled for your account.
- Your ‘Aadhaar’ number must be linked to your bank account.
- Your mobile number which is linked to your Aadhaar should be active in order to receive an OTP which is used to e-sign/ e-authorise the opening of the PPF account instantly.
Here’s a step-by-step guide on HDFC bank PPF account online opening procedure:
- Sign in to HDFC Bank Net Banking with your credentials.
- Under Offers Tab, search and click on the banner for ‘Public Provident Fund.’
- Confirm the details shown in the next screen and enter the PPF amount you want to deposit.
- Choose if you wish to add a nominee and click on the submit button.
- If your Aadhaar is already linked to your account, your form will be submitted, and you will get a message that your account will be opened in one working day.
- If your Aadhaar is not linked, you will have to link it first, to be able to complete the process.
- Once you have your PPF account opened online, you can transfer funds directly from your savings account to your PPF account.
How to Open a PPF Account in HDFC Bank Offline
- If you want to open a PPF account with HDFC Bank via the offline mode, you can follow the below-given steps:
- Get an application form by visiting your nearest HDFC Bank branch
- Fill the form and submit with self-attested copies of supporting documents such as Aadhaar, PAN, Voter ID, etc. along with photographs
- The initial deposit amount also needs to be made to complete the process
- Once your HDFC PPF account is active, you will be provided with a passbook for the same which has the list of current transactions, PPF account number, IFSC and other important details pertaining your HDFC PPF account.
Important Points to Remember while Opening an HDFC PPF Account
As per the Indian law, only one PPF account is allowed in an individual’s name
- The minimum or initial deposit amount is Rs 500
- PPF account for Minors cannot be opened via online mode; you will need to visit any of the HDFC Bank branches.
- NRIs cannot open an HDFC PPF account.
- You can visit the nearest HDFC Bank branch and request for nomination updation/change (if required).
- Joint-account holders cannot open a PPF account online.
- Customers need to visit their nearest HDFC branch to get the passbook for their PPF account.
HDFC PPF Account – Loan Facility
HDFC PPF Account holders can opt for a loan against PPF option subject to certain key criteria:
- Loan against HDFC PPF option can be availed between the 3rd and 6th years of account opening
- The maximum amount that can be availed is up to 25% of the PPF account balance recorded at the end of the 2nd year
- The HDFC PPF loan interest rate is charged at 2% over the applicable PPF interest rate
Extension of HDFC PPF Account
- HDFC PPF account can be extended even after it has matured i.e. after the completion of 15 years from the date of account opening
- The depositor has to place an HDFC PPF account extension request within 1 year of maturity of the account
- The HDFC PPF can be extended in a block of 5 years with or without additional deposits as per the subscriber’s convenience
- During the extension period, the PPF account will continue to earn interest at the applicable rate on the account balance
- NRIs do not have the option to extend their HDFC PPF account post maturity
HDFC Public Provident Fund – FAQs
Ques. Who is eligible to open a PPF account in HDFC Bank?
Ans. Any Indian citizen can start a PPF account with HDFC Bank. One can open one in their own name or on behalf of a minor.
Ques. What happens once the HDFC PPF account matures?
Ans. Once the maturity period of 15 years is over, depositors can partially withdraw the money from their PPF account. The amount standing to the credit of the account, including interest will be paid to the investors in their desired bank account. For making the partial withdrawal, a Form C is needed to be filled completely and submitted to the concerned branch where your PPF account lies.
Ques. Can I Deposit twice a month in my PPF account?
Ans. Yes, investments can be made twice a month but for calculating the deduction under section 80C of the Income Tax Act, only 1,50,000 will be considered. The minimum and maximum investment amount in a PPF account are Rs 500 and Rs 1,50,000 respectively in a financial year for claiming income tax benefit. However, it is always beneficial to make the investment before the 5th of the month in order to claim the interest for the full month.