Overview of Axis Bank PPF Account
The public provident account offered by Axis Bank provides its customers with the opportunity of making a long term investment that promises good return and is also a very safe. These PPFs also offer steady growth to the depositors, so that when the PPF matures, they have a sizable amount of money to do with as they please. The provident fund is governed by the governments PPF scheme that was initiated in 1968.
The scheme offered by Axis Bank also offers high interest rates and income tax benefits under the relevant rules. It also offers online access that ensures maximum convenience when it comes to managing the account efficiently.
Features and benefits of the Axis Bank provident fund
The Axis Bank provident fund account comes packed with features that offer customers a few benefits. Some of these features and benefits are:
- The bank offers tax benefits under section 80C of the IT act for deposits made in this account in a financial year.
- The standard tenure of the PPF account is 15 year but it can be extended by 5 years during which you are not obligated to contribute to the account.
- Since the scheme is backed by the government, it is considered to be a very low risk investment instrument.
- The interest is calculated between the 5th and the last day of each month and is calculated based on the lowest balance you maintain during that period.
- Any withdrawals made from this account, the principal maintained and the interest earned are all tax free.
- Loans can also be taken against the provident fund account
- The account can be operated online via the bank's website and give instant access to things like statements of accounts and balance information.
- This PF can also be opened for minors.
- You can deposit as little as Rs. 500 in a year in your PPF account.
How to Open an Axis Bank Public Provident Fund Account Online?
The PPF offered by Axis Bank cannot be opened online but it can be operated online. To open the account you will need to fill out the application form and submit it at an Axis Bank branch along with certain supporting documents.
Documentation required to open PPF account with Axis Bank
There are certain documents that you will need to submit as part of the account opening formalities for the PPF. These documents are:
- Fill out and submit the account opening form.
- Provide 2 passport photographs.
- Provide an address proof in the form of driver’s licenses, passports, electricity/telephone bills, etc.
- You will also have to provide an identity proof which can be a PAN card, passport or a driver’s license.
- You will also have to submit the KYC document that has been filled according to the prescribed norms.
- If the person for whom the account is being opened then a copy of their birth certificate will also be required.
- In case you don’t have a PAN card, you will have to provide forms 60/61 too.
- If the person opening the account is a senior citizen then a proof of date of birth will be required.
Axis Bank PPF Account Opening Form
The account opening form is available online and is very simple to fill. It has 5 major sections which collect the following information:
- Personal details: This will cover your name, date of birth, marital status, employment status, PAN details, etc.
- Minor Declaration: This is the section that is used in case the applicant is a minor and it collect information and declarations by the legal guardians of the child.
- Address Details: This is the section where you enter the details regarding your permanent and communication address and provide other contact details.
- Initial Subscription Details: This is the section where you inform the bank about how you wish to make an initial contribution to the PF. This can be done via cheque or by allowing the bank to debit the indicated amount from your bank account.
- KYC: This is the section where you fulfil the KYC (Know Your Customer) requirements by mentioning the details of the documents you are submitting.
- The remainder of the form deals with your agreement to the terms of the PPF and signatures to validate the application form.
Axis Bank PPF Account Rules and Guidelines
While the PF account comes packed with features and benefits, there are some rules that you will need to follow while banking with Axis Bank for the public provident fund.
- You can open only one PPF account at a time.
- If you are an NRI then you cannot open a PPF account but if you become an NRI after opening the account you can continue to hold the PPF and deposit money in it.
- The PPF account cannot be opened as a joint account. It can only be an individual account.
- The amount that you can deposit in the account ranges from Rs. 500 to Rs. 1.5 lakhs in a year.
- The amount you deposit must always be in multiples of 5.
- If you deposit more than Rs. 1.5 lakhs in a year then the amount exceeding the maximum limit will not be taken into account when calculating the interest. This amount will also not be eligible for any tax benefits.
- If you wish to take a loan against the PPF then you can only do so between the 3rd and 5th years of the PPF.
- You can deposit money in instalments however you cannot make more than 12 deposits in the account in one year.
- This account does not allow for any premature withdrawals so the only time a premature withdrawal will be permitted will be when the account holder passes away.
- The interest that is earned on the PPF is credited on the 31st of March every year.
Axis Bank PPF Scheme Interest Rate
Axis Bank offers a very attractive PPF interest rate of 8.7% per annum on its provident fund accounts. This interest is calculated based on the lowest balance in your account between the 5th day of the month and the last day.
Axis Bank PPF Calculator
The PPF calculator is an invaluable tool as it can tell you exactly what the maturity value of the PPF will be. It will also tell you what your accounts situation will be in terms of principal, interest earned and the amount at the end of the year for each of the 15 years that your PPF is active for.
How to deposit money in your Axis Bank provident fund Account
You have two options to deposit money in your PPF account.
- Online Method: If you want to deposit money online then you can do so through any of the bank accounts that are linked to the provident fund account. To make this work you will have to link a savings account to the PPF account first. Another online method is the direct debit wherein you provide the bank with your account number and they will debit the amount from said account and put it in your PPF.
- Offline Method: If you don’t have access to the internet you can even give the bank a cheque for the amount along with the account details and they will deposit the cheque in your account. Even the first investment you make can be done this way.
How to transfer your PPF Account from Post Office to Axis Bank
To transfer your PPF from the post office to Axis Bank, you will have to provide the post office with the instruction to close said PPF account and provide Axis Bank with the details of the post office PPF so that they can verify and transfer the account.
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