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ToggleThe public provident fund (PPF) is one of the most popular long-term savings-cum-investment schemes offered by the Central Government. It is a safe and tax-free investment option that comes with a lock-in period of 15 years. You may invest a minimum amount is INR 500 per year with the maximum capped at INR 1.50 lakhs per annum. You may also avail of a loan against your PPF account balance.
A PPF account can be opened with a nationalized bank or the local post office (PO). Private banks also allow you to open a PPF account. You may open one by submitting the application form to any of these financial institutions.
Although you invest every year, you may not regularly do a PPF balance check often. However, it is important to periodically check the balance for the following reasons:
The current interest rate for for PPF accounts in the months July-September FY 2024-25 has been fixed at 7.1%
You can do a PPF account balance check either offline or online. Here is how you can do it offline.
Visit the closest branch and check your PPF account status. The bank provides you with a passbook at the time of account opening, which comprises information like the PPF account number, branch details, transaction history, and account balance. You may update the passbook by visiting the branch at regular intervals. Most banks now offer automated facilities at kiosks that operate around the clock, allowing you to update the passbook at your convenience.
If you are in a rural location, you may not have easy access to a bank. In such cases, you can opt for a PPF account at your nearest PO. When you open the account, you will be given a passbook comprising the aforementioned information like the account number, transaction history, and account balance. To know the balance, you need to visit the post office and update the passbook.
You can also check the PPF balance online if you open it with a bank. To do so, you need to link the bank account with your PPF account. Additionally, you should have access to activated Internet banking. Here is how to check the PPF balance online.
The facility depends on your bank’s portal and varies from one institution to another.
This application gives you access to the mobile banking facility and can be downloaded from the Google Play Store or the App Store. You will receive an mPIN, which can be used to log into the app and the username is the same as your Internet banking ID. When you log in the first time, use the mPIN and one-time password (OTP) to change the password. You can then check the PPF balance under the ‘My Deposits’ section.
To do a PPF balance check via SMS, you need to give a missed call to 9223766666. You may also type ‘BAL’ and send a message on the same number to know the balance.
Knowing the PPF balance helps you to plan for future finances. Here are the options that are available on maturity.
The extension (with or without additional investments) can be done for five years.
It is a tax-free investment option offered by the Government of India with a 15-year lock-in period. At the end of five years, you can partially withdraw from the accumulated funds. On maturity, you can either withdraw the full amount or extend your account for an additional period of five years.
As per the regulatory guidelines, two deposits per month are allowed. However, the total number of deposits during a year cannot exceed 12 times.
The Government of India declares the applicable rate of interest every quarter.
No, joint PPF accounts are not available as every individual can have only one account.
Yes, legal guardians or parents can open a PPF account on behalf of the minor by submitting the necessary documents.
You must invest regularly to build a large corpus. Additionally, putting in money at the beginning of the financial year helps you earn more interest, thereby increasing the PPF account balance.
Some reasons for a low account balance are as follows:
No, the PPF account cannot be closed before 15 years; however, partial withdrawal at the end of five years is available.
Yes, a fine of Rs.50 is levied if you do not make a minimum contribution of Rs.500 every financial year.
Priyanka Rao is a content strategist for Jupiter.Money, and specializes in writing on topics related to finance, banking, budgeting, salary & wages, and other financial matters. She has a passion for creating engaging content that resonates with audiences across various digital platforms. In her free time, Priyanka enjoys traveling and reading, which allows her to gain new perspectives and inspiration for her work. With a keen eye for detail and a creative mindset, Priyanka is committed to creating content that connects well with her readers, enhancing their digital experiences.
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