Calculating PPF Using Pen and Paper? Move Over, Let’s Know Your Savings Online

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Pune, 20th July 2022: One of the primary rules of financial management is to save substantially annually. Most people put some money aside in their savings account every month. However, keeping your money in a savings account does not offer a good return. Therefore, you should always look for investment schemes that offer great returns and carry low risk. The PPF account is one such option, as well as the most common investment scheme in India. PPF stands for Public Provident Fund.

If you are an individual who likes to lead a good life after retirement or a responsible parent who wants to start saving for your child’s future, investing in PPF is a good option. Calculating PPF manually can be a bit tiring and difficult. The PPF calculator helps in making the job easier.

How can a PPF calculator help?

The PPF calculator is a tool that helps in solving all your queries regarding the PPF account. There are certain criteria to be met for calculating the maturity amount. The PPF calculator helps in keeping track of your financial growth. Since interest rates offered on PPF accounts keep changing frequently, it often becomes difficult to keep track of interest rates every month. The PPF calculator will automatically use the current interest rate and calculate the maturity amount as per the amount invested in PPF. It is simple to use, free of cost, and a user-friendly tool available online.

Eligibility to Open a PPF Account

One needs to meet the eligibility criteria before they can invest in a PPF account. Here are the following criteria that you need to meet to open a PPF account:

  • The individual should be a citizen of India. NRIs are not allowed to open a PPF account.
  • The investor can have one PPF account in their name. However, if they wish to open another account, they can open it on behalf of a minor.
  • The investor should have valid documents to open a PPF account along with the deposit amount. Please note that a minimum amount of Rs 500 and a maximum amount of Rs 1,50,000 can be invested in PPF. If you have good earnings and plan to save more, you can use other investment schemes as well as PPF.

Opening a PPF account 

There are two methods through which you can open a PPF account. You can either open it online or offline. Almost every nationalized and private bank in India gives the option of opening a PPF account. If you are able to meet the eligibility criteria, then you can use one of the methods to open the PPF account.

Opening a PPF account through Online Mode

Investing in PPF is an ideal option for any individual. However, to open a savings account, you need a savings bank account. Also, your internet banking should be active for the participating bank.

  1. Log in to internet banking or mobile banking to open a PPF account online.
  1. Search for “Open a PPF account” and select the option.
  1. Once you select to open a PPF account, you will be asked to open a self-account and a minor account option. If you are opening the account for yourself, then choose “self-account,” and if you are opening the account on behalf of a minor, select “minor account.”
  1. After selecting the account type option, you will be asked to fill out a form with relevant details like name, address, PAN number, Aadhar number, etc. Enter all the details accurately on the form.
  1. If you want to maintain discipline in saving towards the PPF account, you can set up a direct debit option on your account. This way, a particular amount will be directly debited every month from your account.
  1. Once an application form is filled and submitted, an OTP or one-time password will be sent to the registered mobile number or email address.
  1. Verify the account via OTP and your PPF account will be successfully created. You will receive a confirmation email that your account has been opened.

Opening a PPF account through Offline Mode

If you are not familiar with internet banking or mobile banking, you can visit your nearest bank branch to open a PPF account. To open a PPF account, you would need to fill out an application form and provide the required documentation.

The documents required to open a PPF account are:

  1. PPF account application form
  1. Identity documentation (Aadhar card, PAN card, passport, driver’s license, etc.)
  1. Address proof (Aadhar card or passport copy)
  1. Signature proof
  1. To deposit a check or cash into the account

Why should you invest in PPF?

PPF and FD are two common investment schemes in India. Both have their own pros and cons. Both offer guaranteed returns on investment and are low risk as well. FD tenure can be according to the choice of the individual. However, PPF has a lock period of 15 years. Depending on your financial goals, you can select the scheme of your choice.