How to open ppf account online?

Public Provident Fund (PPF) Account

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Introduction

When it comes to safe investments in India, one name that has stood strong for decades is the Public Provident Fund (PPF). Whether you are a salaried person, a small business owner, or a homemaker, PPF is one of the most trusted and popular saving schemes.

Why is it so popular?
Because it combines three magical things that every investor loves:

  1. Safety (Government-backed, no risk of loss)
  2. Steady returns (attractive interest rate of 7.1% currently)
  3. Tax benefits (you save tax while also building wealth)

With SBI YONO App, opening and managing a PPF account has become super easy—you don’t even need to visit a branch unless you want to.

This blog will explain everything you need to know about PPF in simple, everyday language—what it is, its features, benefits, tax savings, how to open/manage it, withdrawal rules, extension, loans, FAQs, and expert tips.

What is a PPF Account?

The Public Provident Fund (PPF) is a long-term savings scheme launched by the Government of India in 1968.

It’s like planting a tree today that gives you fruits after some years, plus a shade of financial security. You invest small amounts regularly, and over time, it grows into a large tax-free corpus.

Key Highlights of PPF

  • Safe & Secure: 100% backed by the Government of India.
  • Returns: Interest rate of 7.1% per annum (compounded annually).
  • Lock-in period: 15 years (but withdrawals are allowed after certain years).
  • Tax benefits: Deposits, interest, and maturity—all are tax-free.
  • Investment Range: Minimum ₹500 and maximum ₹1.5 lakh per year.
  • Who can open? Any Indian citizen (only one account per person).

So, if you want a no-risk investment with guaranteed returns and tax savings, PPF is a perfect choice.

Features of PPF Account

Let’s break down its most important features:

  1. Opening a PPF account
    • Can be opened at SBI, other banks, or Post Office.
    • In SBI, you can open it easily via the YONO app or by visiting a branch.
  2. Account Operation
    • Check balance, statements, and transactions using internet banking/YONO.
    • Fund transfers directly from your linked savings account.
  3. Interest Calculation
    • Calculated monthly on the lowest balance between 5th and last day of the month.
    • Credited once a year on 31st March.
  4.  Example: If you deposit ₹10,000 on 10th April, interest will not count for April. To maximize interest, deposit before 5th of the month.
  5. Nomination Facility
    • You can add nominees (family members) during opening or later.
  6. Tenure & Extension
    • Minimum lock-in period: 15 years.
    • Extendable in blocks of 5 years (with or without new deposits).
  7. Loan Facility
    • Loans available from 2nd year to 5th year, up to 25% of balance.
  8. Partial Withdrawals
    • Allowed from 7th year onwards.
  9. Minimum & Maximum Deposit
    • ₹500 (minimum per year)
    • ₹1.5 lakh (maximum per year)
    • Flexible: You can invest lump sum or in installments (max 12 times a year).

PPF Interest Rate

Currently, the PPF interest rate is 7.1% per annum (FY 2025–26).

  • Compounded annually → This means your interest also earns interest.
  • Rate is revised every quarter by the government.

 Over 15 years, even a small contribution grows into a large amount because of compounding.

For example:

  • If you invest ₹1.5 lakh every year → after 15 years, you can have around ₹40 lakh, completely tax-free.

Try using the official SBI PPF Calculator to see your growth.

Benefits of PPF

  1. Tax Benefits (Triple E – Exempt, Exempt, Exempt)
    • Deposits qualify for deduction under Section 80C (up to ₹1.5 lakh).
    • Interest earned is tax-free.
    • Maturity amount is 100% tax-free.
  2. Safety
    • Zero risk—government-backed.
    • Ideal for risk-averse investors.
  3. Digital Convenience
    • SBI YONO App allows easy deposits, nominee updates, and balance checks.
  4. Flexible Contributions
    • Lump sum or monthly deposits, as per your comfort.
  5. Loan Facility
    • Emergency loan option available without breaking the account.
  6. Partial Withdrawals
    • Flexibility to withdraw part of your money after 7 years.

Eligibility for SBI PPF Account

  • Must be an Indian Resident (NRIs not allowed).
  • Minimum age: 18 years.
  • Only one account per person (excluding minor’s account).
  • Can open for a minor child (by parent/guardian).
  • Must have Aadhaar, PAN, and SBI savings account.

Step-by-Step Guide to Open PPF Account in SBI YONO App

Opening a PPF account with SBI YONO is very simple:

  1. Download YONO SBI App from Google Play Store / App Store.
  2. Log in with your internet banking credentials.
  3. Go to “Investments” → “PPF Account”.
  4. Select branch, nominee details, and contribution type.
  5. Set up auto-debit (optional).
  6. Accept terms, verify with OTP.
  7. Your PPF account is created instantly.

Deposit at least ₹500 immediately to activate it.

Managing Your PPF Account Online

  • Check Balance: Deposits → Other Deposits.
  • Update Nominee: Services → Manage PPF Nominee.
  • Download Statement: Through YONO or internet banking.
  • Deposit Contributions: Direct transfer from SBI account.

Withdrawals and Loans

  1. Loan Facility
    • Available from 2nd year to 5th year.
    • Max loan = 25% of balance.
    • Interest = 1% (if repaid within 36 months).
  2. Partial Withdrawal
    • From 7th year onwards.
    • Max = 50% of balance at 4th year or previous year.
  3. Full Withdrawal
    • After 15 years.
    • Can either withdraw completely OR extend for 5-year blocks.

Premature Closure Rules

Allowed after 5 years only in special cases:

  • Serious illness of self or family.
  • Higher education expenses.
    Penalty: 1% reduction in interest rate.

How to Close or Extend PPF Account

  • After 15 years, you can:
    • Withdraw full amount and close.
    • Extend in blocks of 5 years (with/without deposits).
  • No limit on number of extensions.

How to Transfer a PPF Account

  • You can transfer between banks, branches, or post offices.
  • Process is offline (not available online yet).
  • Submit transfer request form + documents at existing branch.

How to Reactivate an Inactive PPF Account

If you miss minimum ₹500 in a year, the account becomes inactive.
To revive:

  • Pay ₹500 per missed year + ₹50 penalty per year.

Frequently Asked Questions (FAQs)

1. What is the best age to start PPF?
 The earlier, the better. Even parents can open for a newborn. By the time the child turns 21, a huge tax-free corpus is ready.

2. What if I don’t deposit in a year?
 Account becomes inactive, but can be revived with penalty.

3. Can I have two PPF accounts?
 No. Only one account per person is allowed.

4. Can I change nominee later?
 Yes, you can update/change nominees anytime.

5. What if I don’t withdraw after 15 years?
 Your money will continue to earn interest until you withdraw.

6. Can NRIs open a PPF account?
 No. Only resident Indians can open.

7. Is PPF better than FD?
 Yes, for long-term savings. FD interest is taxable, PPF is tax-free.

Pro Tips for Maximizing PPF Benefits

  1. Deposit between 1st–5th April every year for maximum interest.
  2. Always invest full ₹1.5 lakh annually to maximize tax savings.
  3. Set up auto-debit to avoid missing deposits.
  4. Use PPF as a retirement planning tool, not short-term savings.
  5. Extend account after maturity to keep enjoying tax-free returns.

Why PPF is Still Relevant in 2025

Even with new investment options like mutual funds, SIPs, and digital gold, PPF remains unbeatable for safe, tax-free, guaranteed returns.

  • Great for risk-averse investors.
  • Balances your portfolio with stability.
  • Provides both tax benefits and long-term wealth creation.

Conclusion

The Public Provident Fund (PPF) is more than just a savings account—it’s a financial safety net for your future. With benefits like 7.1% guaranteed returns, complete tax exemption, long-term wealth growth, and digital ease through SBI YONO, it’s one of the best investment options for every Indian.

Whether you’re saving for retirement, your child’s education, or simply want to build a safe corpus, PPF is a must-have in your financial portfolio.

PPF vs FD vs Mutual Funds – A Simple Comparison

When it comes to investing, people often get confused between PPF, Fixed Deposits (FDs), and Mutual Funds. Each has its pros and cons, but here’s a simple table to help you understand:

FeaturePPF (Public Provident Fund)FD (Fixed Deposit)Mutual Funds (Equity/Hybrid)
Safety✅ Government-backed, 100% safe✅ Safe (bank/NBFC guaranteed)❌ Market-linked, carries risk
Returns (2025)7.1% p.a. (compounded annually)5%–7.5% p.a. (depends on bank & tenure)10%–15% p.a. (average, but not guaranteed)
Tax Benefits✅ Triple Exempt (Deposit, Interest & Maturity tax-free under Sec 80C)❌ Interest fully taxable✅ ELSS (Equity Linked Savings Scheme) eligible under Sec 80C, but maturity taxable (as per capital gains rules)
Lock-in Period15 years (partial withdrawal after 7 years)7 days to 10 years (flexible)ELSS = 3 years; Others = no fixed lock-in
Liquidity❌ Limited (loans & partial withdrawals only)✅ High (can break FD anytime with penalty)✅ High (can redeem anytime, except ELSS)
Best Suited ForSafe long-term savings, retirement planningShort to medium-term safe savingsLong-term wealth growth (with risk tolerance)

Quick Takeaway

  • If you want 100% safety + tax savings + guaranteed returns → choose PPF.
  • If you want short-term safety & liquidity → go for FD.
  • If you want higher returns & can take some risk → invest in Mutual Funds.

Smart investors usually combine all three – PPF for safety, FD for short-term needs, and Mutual Funds for higher growth.

PPF vs FD vs Mutual Funds – A Simple Comparison

When it comes to investing, people get confused between PPF, Fixed Deposits (FDs) and Mutual Funds. Each has its pros and cons, but here’s a simple table to help you understand:

If you want 100% safety + tax savings + guaranteed returns → choose PPF.

If you want short-term safety & liquidity → go for FD.

If you want higher returns & can take some risk → invest in Mutual Funds.

Smart investors usually combine all three – PPF for safety, FD for short-term needs, and Mutual Funds for higher growth.

Here’s a visual comparison of how ₹1.5 lakh invested every year grows over 15 years in PPF, FD, and Mutual Funds:

  • PPF (7.1%) → grows steadily and safely.
  • FD (6.5%) → safe but slightly lower than PPF.

Mutual Funds (12%) → higher potential returns, but with risk.

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