How to Invest in PPF Online and Offline?

An investment in the PPF (Public Provident Fund) is one of the best means to build long-term wealth. It’s a combination of safety, tax benefits and returns that make it an excellent savings-cum-investment product for all kinds of investors. Our guide will help you get started on investing in the PPF in no time.

How to invest in PPF?

Open an account: To begin your investment in PPF, you must first open a PPF account in a bank or a post office. The process to open an account is easy and convenient, and you can do it either online or offline (Read more about this in our step-by-step guide on how to open a PPF account).

Know the basics: You can make investments in the PPF every year (in a maximum of 12 instalments) right from Rs. 500 up to Rs. 1.5 lakh. You can make investments either in your name or on behalf of a minor. While the tenure of the PPF account is fixed at 15 years, you can extend it for a further block of five years. The PPF investments are eligible for deduction under Section 80C of the Income Tax Act (ITA).

Process: You can deposit money into your PPF account either offline (by visiting a branch) or online (via NetBanking).

How to invest in PPF offline?

You can deposit the amount by cash, cheque or demand draft. To deposit, you must fill up a PPF deposit challan or Form B. The deposit slip will have a main section and two counterfoils – one for an agent and one for you to retain as a receipt.  Fill up the form and the counterfoils (if you are investing directly, ignore the agent copy). You will have to enter your name, address, your PPF account number, amount you are investing and the details of how you are making the investment (cheque or cash). The teller will then stamp the form and give you your counterfoil.

If you have a passbook, make sure it is updated. If you are depositing by cheque, your passbook will be updated only after the cheque is released. If you are depositing by cash, the bank will immediately update your passbook.

How to invest in PPF online?

You can make online deposits through a funds transfer (if your savings and PPF account are both with the same bank) or a third-party transfer (if the accounts are in different banks).

To make an online deposit, you must first add your PPF account as a beneficiary by logging into your NetBanking account. Once you have added your PPF account as a beneficiary, you can easily transfer funds via NetBanking or MobileBanking.

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

You can easily view your account statements online to check balances in your PPF account.

To invest in the Public Provident Fund Scheme, click here to know more.

* The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. You are recommended to obtain specific professional advice from before you take any/refrain from any action.