The only investment option appreciated by both big bucks and scrooges is Public Provident Fund (PPF). PPF is a long term investment plan which is supported by the Government of India. It suits all kinds of investors as it is free from tax. Securing a PPF account is certain to only designated banks, the article speaks in detail about the online services provided for the PPF account by reputed ICICI bank. In the article, we will discuss about How To Open A PPF Account Instantly Using ICICI Online Services?
Basic Information
In this article
“Internet Banking Services of ICICI Bank” refers to the services offered by ICICI Bank to the Customers,
Here, customers refer to the ICICI savings account owner or users of the online services of the bank.
Website refers to the established site of ICICI Bank;
The URL is http://www.icicibank.com
It is used for providing various products, including Internet Banking Services.
Why Should You Prefer ICICI For PPF Account?
i. ICICI is considered to offer higher interest rates in savings and fixed deposits than other Commercial banks.
ii. ICICI bank PPF calculator displays the total returns.
iii. Suppose you invest Rs. 50,000 annually for 15 years in ICICI PPF account, you can expect the amount of about Rs 14,53,505 at the end of 15 years.
iv. The returns can be obtained through the PPF account calculator by ICICI Bank,
The formula used by the ICICI PPF calculator for determining the total is:
A= P [({(1+i)^n}-1)/i]
Where,
A= Final amount realized on maturity.
P= Principal investment amount
i= rate of Interest (subject to quarterly government changes)
n= period of investment
Procedure To Open A PPF Account Instantly Using ICICI Online Services
1. Fill The Form Online
To apply for PPF Account through the Website, the Customer will be required to fill in a form. The stated form is available to the Customer through the logged in section of the Website.
If you are a customer of ICICI, you can open a PFF account in just 6 steps:
i. Visit the ICICI Bank webpage and log in to the page with your authorized ID.
ii. Click on the My Accounts tab, then select the PPF Accounts option,
iii. Select and click “Open Now.”
iv. Enter information about the account number from which you like to transfer funds and also details about the bank branch
v. Your personal details have to be verified with your address and identity data; click proceed on completion.
vi. In the next screen, your Aadhar number has to be linked in with your bank account, If you had already linked, select Generate OTP, else update.
vii. To open the PPF account, instantly create an e-sign with Aadhar OTP.
viii. With the completion of the formalities, within a few seconds, a PPF account is created, and the account number of PPF is displayed immediately to you.
It must be noted that the statement of the transaction (the amount which you transfer every year) and, the annual statement (the returns from the 15 years invested period) of the PPF account is available on internet banking.
Even if you don’t have an ICICI savings account. ICICI provides an opportunity to create a PPF account,
First, by creating a new savings account, Second, by opening the PPF account through the new account.
2. Photocopy The Form
You will be asked to fill an account opening form from the online portal, after filling the fields, send postage of the filled form with required documents.
3. Include Photograph And Signature
Affix a passport size photo in the specified space along with the signature.
4. Attach KYC Documents
Submit the KYC documents in the nearest branch where you wish to open an account. KYC documents serve as proof of your identity and address.
It includes,
- Passport,
- Aadhar Card,
- Driving License,
- Telephone Bill (not more than 3months old),
- Bank Account Statement (not more than 3months old),
- Electricity Bill (not more than 3months old),
- Ration Card,
- Employer’s letter certifying address.
It’s mandatory to submit either one copy of the enlisted documents as proof of identity and address. Only after verification of the documents, ICICI bank would open a PPF account. Now you can transfer funds from your savings account to the PPF account every month. You can also view account details online. With the completion of this process, you are a customer of ICICI, so, procuring the PPF account becomes a piece of cake to you.
Points To Note When Opening A PPF Account
- According to the law, a citizen can only open one PFF account.
- The least amount to be deposited is Rs 100.
- A PPF account for the minor cannot be opened through online mode.
- PPF account for NRIs is not enacted still.
- To update/change, you can visit the nearest ICICI Bank to request the nomination.
- Using an online portal to open a PFF account is not an applicable option for the Joint Account Holders.
- To get the passbook for PPF account Customer needs to visit the branch.
Terms and conditions applied to secure ICICI PPF account online:
You cannot take a fresh loan until the previous loan is cleared.
If you wish to avail of a loan,
- Be aware that the rate of interest which you should pay is 2% extra to the yearly compound interest.
- For Example, If your PPF account has an interest of about 7.9% per annum, the interest you must pay would be 9.9% (7.9+2).
Features Of PPF
In PPF, the amount is locked for 15 years with annual compound interest, at an average interest rate of 7.6 percent.
i. It’s free from tax.
ii. After the specified 15 years period, one can either take up the deposited amount with interest or,
iii. The loan amount can be availed between 3rd to 6th year.
iv. Partial withdrawal of the amount from the 7th financial year is possible.
v. Extend the account for another 5 years with or without any further contributions.
Interest Amount Margin
The government sets the interest rates on PPF based on the yield (return) of government securities.
PPF offers,
- In 1968-69-a 4% per annum,
- 1986-2000 -12% per annum,
Owing to the quarter term change by the government, the interest rate varied as follows,
- October 1 to December 31, 2018, is 8% per annum,
- April-June, 2019 is 8 percent;
- July-September, 2019 is 7.9 percent;
- October-December, 2019 is 7.9 percent;
- and January-March, 2020, is 7.9 percent.
What Does Section 80C Of The Income Act Enforce?
The law 80C of The Income Act lists categories exempted from tax; PPF is one among.
The Account Can Hold:
- The account must have at least Rs.500 to be active,
- A deposit of about 1.5 lakhs to the max per financial year is possible.
FAQs
1. Is it possible for a minor to have a PPF account?
Yes, an adult can open an account for his/her minor child.
2. What does Standing instruction in the PPF account mean?
It refers to the debit or transfer of funds from the PPF account.
3. What does Form E mean?
While opening a PPF account, the nomination provision is not present in the application form.
Filing a separate form (Form-E) avoids nominee from later on arguments and problems. Form E acts as proof for the nominee(s)to get the PPF account fund.
4. Is it possible to have more than one nominee?
The answer is yes…PPF account can have more than one nominee. But you must divide shares for each.
5. Can I change the nominee?
Yes, you can. The PPF account holder can file Form F, which declares people’s exemption from the nominee list.
6. What if the PPF holder dies?
The amount invested along with the interest amount will be settled to the nominee or legal heir even without the completion of 15 years term,
But there is no option for the nominee or legal heir to continue the account with fresh contributions.
7. How can I check the account status online?
Ensure that your internet banking is linked to your bank account.
Log in with your credentials. Here credentials refer to your user Id and Password.
Then check your PFF account.
8. What happens if the amount is not paid?
If there is no minimum deposit of about Rs.500 per year, then the account gets deactivated, to activate the deactivated account, should pay the penalty amount.
The bank fixes the penalty amount.
9. Difference between FD and PPF?
1. FD and PPF are investing options.
2. PPF is a long term investment, where the amount is locked for 15 years.
3. In (Fixed Deposit) FD, there is no mandatory investment period,
4. The amount has to be in the account, for a minimum period of 7 days, for a maximum period of 10 years
5. FD does not have any long-term investment.
6. FD is flexible over PPF.
10. How can I get a passbook for my account?
The customer gets a passbook for the PPF account by visiting the bank. Only a savings account nominee could be nominated as the PPF account nominee?
No, the customer has the option to select a new nominee for the PPF account or
can even open the account without any nominees.
11. Only a savings account nominee could be nominated as the PPF account nominee?
No, the customer has the option to select a new nominee for the PPF account or can even open the account without any nominees.
12. Can I close my PPF account before the maturity period of 15 years?
Actually, one cannot close the account within the 15 years maturity period, but with the account holder’s demise, the account gets closed.
13. Can an NRI open the PPF account in India?
No, the Primary checklist of PPF account includes that the applicant must be an Indian. I hope the article has given a deep description of the PPF account and its rules.
To open the PPF account, kindly visit the online portal of ICICI Banking services.
https://www.icicibank.com/Personal-Banking/faq/investment/public-provident-fund-faqs.page
Bottom Line
In my opinion, investing in PPF is much appreciated by customers who prefer to have a long-term investment. Thus, I conclude by quoting that PPF is like any other investment scheme which is secure and profitable with a good compound interest margin. Choosing between PPF and any other investment services depends upon the customer, but choosing PPF would be a golden handshake at the time of retirement.
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