How to invest in PPF: Smart Tips to Invest in PPF

Way too many expenses? Looking for a medium to invest money which involves negligible risk? Then, the Public Provident Fund (PPF) is suitable for you. Wondering, how to invest in PPF? No Worries. We will enlighten you with the process of investing in PPF.

What is a Public Provident Fund?

It is one of the most popular Long-term Saving-cum-Investment plans. Safety, attractive Interest rate, and tax benefits attributed to its popularity. People who invest in PPF use it as a tool to build a corpus for their retirement. They put a chunk of amount regularly, over long periods (Generally for 15-year-term period maturity which can also be extended). You can invest as small as ₹500 and a maximum of ₹1, 50,000 in a year.

How to invest in PPF?

to invest in PPF?

An Account is a must

In order to invest in PPF, you must open a PPF account either in a bank or the post office. The process of opening an account is easy which can be done offline or online.

Know the basics

The investments in the PPF which can be made every year (in a maximum of 12 installments) ranges from Rs. 500 up to Rs. 1.5 lakh. The investments can be made either in your name or on behalf of a minor. PPF account’s tenure is fixed at 15 years but you can extend it for a further block of five years. The PPF investments are also eligible for tax deduction under Section 80C of the Income Tax Act (ITA).

How to invest in PPF offline?

The amount can be deposited by cash, cheque, or demand draft. You have to fill up a PPF deposit challan or Form B to deposit the amount. The deposit slip which you fill will have a main section and two counterfoils – one is for the agent and the other is for you to retain as a receipt. Fill up the form and the counterfoils. You need to fill your name, address, your PPF account number, amount you are going to invest and the details of how you are making the investment (cheque or cash). Then. at last, the teller will stamp the form and give you your counterfoil.

Points to be noted- Make sure that your passbook is updated. If you’re depositing the amount by cheque, your passbook will need an update only after the cheque is released. If you are depositing by cash, then the bank will update your passbook.

How to invest in PPF online?

If you use net banking service then you can easily make online deposits through a funds transfer (in case your savings and PPF account are both with the same bank) or a third-party transfer (in the case when the accounts are in different banks).

To automate the process, if you want, you can issue standing instructions to your bank, and your PPF investments will automatically get credited.

If you want to know about more saving options or get to know about PPF in detail, Listen to the podcast- Paisa Vaisa 


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