One of the most popular long-term savings plans, the Public Provident Fund (PPF), concentrates on encouraging modest deposits like investment and increasing returns on investment.

PPF provides a good interest rating and returns on investment like a savings program by the government.

One of the few organizations in our nation that reach even the farthest areas is the Indian Postal System. This is a significant reason why delivery services have been the leading organization. These include insurance and banking services and smaller savings plans like the PPF (PPF).

Historically, a postal agency PPF was a device for tax saving and non-risk investing. In addition, it has an appealing interest rate safe deposit system.


Eligibility To Open Public Provident Fund(PPF) Plan:

A retired or self-employed person or is a part of any such category may open a PPF postal service account at the postal office.

Only one account may be opened under your name. The principal sum of the second account will be reimbursed without interest if two accounts are opened. And it’s closing the account.

A mother or dad can create a PPF account for their child (not both) ( minor). However, the child cannot maintain the account when the mother or father dies. Therefore, the report is closed in these situations, and the sum is reimbursed.

An NRI cannot open a PPF account (Non-Resident Indian). If the account is started while in India, the account is still operational till its maturity.
Only double-service post offices can open a PPF account.

Documents Required For Opening A PPF Account:

The documentation necessary for the PPF account is provided below.

ID evidence– Adhar card, driving license, voting ID, etc. ID evidence
Address proof: Aadhar card, passport, driving permits, etc., address proof.
PAN card number for a permanent account
A picture of a passport size
Form – Form E Appointment

How To Open A PPF Account In The Post Office?

A PPF account is now being opened in a post office on paper. The physical attendance of the postal office is thus required. The process of opening a PPF account in a post office is as follows.

Firstly, the next postal office or sub-office must get an open application form.
Upon completing the form, copies of KYC papers (PAN card, Aadhar card, Voter ID, etc.) and a passport photograph must be presented at a local post office.

An initial INR 500 payment is needed for establishing the account by check/draft. Initially, a maximum deposit of INR 70,000 may be paid by individuals. However, in the financial year, the full allowable deposit is 1,5 lakhs INR.

After all, the documents in question are provided with the initial deposit; the individual is passed on to the PPF account passbook. Details like the account name, PPF account number, and branch name are contained in the passbook. You may also visit the post office to learn more about your PPF account details.

Online Post Office PPF Account:

There is no option in the post office to create a PPF account online. The application form to open a PPF account may be downloaded online, however, via the website of the post office.

In addition, people can deposit money online in India by post PPF once the account is set up. However, for the opening of the account, you must visit the post office once.

Minimum Amount: the minimum depositable Amount is INR 500 every year. It also helps maintain an active account.

Maximum Amount: INR 1.5 lakhs is the maximum amount you may deposit throughout a fiscal year.

Maturity Period: A 15-year PPF account matures. However, a person can prolong the term by a five-year block. In addition, no extra expenditure is necessary for subsequent expansion.

Facility for loans: individuals may use their PPF account for lending. But between the third and fifth years, they can use the loan. Furthermore, the loan cannot exceed 25% of the investment during the second financial year.

Appointment Facility: Appointments may be added when opening the account or after opening the account.

Taxation: Contributions made under section 80C of the Income Tax Act of 1961 to PPF accounts are tax-free. In addition, tax is free from the interest received on the donations.

Withdrawal: before maturity, people can revoke their investments from their accounts. However, only a partial sum can be withdrawn. Therefore, only 50% of the PPF balance can be withdrawn at the end of the fourth year or 50% on the last year’s balance, whichever is smaller.

Premature closure: before the maturity period, i.e., 15 years, individuals cannot cancel their account.
Payment method: Individuals can make a single sum payment or up to 12 installments in a financial year.

Minor account: Anyone who has previously established an account can open a minor’s other account.
Joint account: people are allowed to open just the name of a PPF account. Joint accounts PPF cannot allow

The Interest Rate On PPF Account:

PPF is an Indian government-supported program. Consequently, all post offices and banks that provide the facility continue to maintain the PPF interest rate. The applicable interest rate is advertised every quarter by the Ministry of Finance. In postal offices, the current PPF interest rate is 7.10%. The PPF interest rates remained maintained from the prior quarter by the Ministry of Finance. Interest payments are also made annually on 31 March.

The Postal PPF rate is computed based on the minimum balance between the 5th and final days of each month of an investor’s account. PPF deposits should thus be made on or before the 5th day of the given month. This is because the investor will get interested in the amount of the investment over the entire month.

In addition, the PPF account post office interest rate is excluded from tax in accordance with the 1961 Revenue Tax Act.


The public provident fund is an excellent choice for investors seeking risk-free products with a long-term investment horizon. The PPF is a debt instrument that can be used to allocate assets efficiently.