7 Mins

The Public Provident Fund (PPF) was launched in 1968 by the Government of India to encourage small savings. The interest rate on a PPF investment is 7.1% and is announced by the government every quarter. It is a tax saving plus long term investment vehicle. Investment in public provident funds qualifies for tax benefits under Section 80C of the Income Tax Act, 1961. One can invest in public provident funds through post offices or any authorized banks. Axis Bank is one such bank where one can open a PPF account. This article covers Axis Bank PPF, its features and interest rates in detail.

Axis Bank PPF Interest Rates

The Axis PPF interest rate is 7.1%. It is announced by the Ministry of Finance every quarter. The interest rate on PPF account in Axis bank is compounded annually. One can estimate their returns from investment in a public provident fund using a PPF calculator. Scripbox’s PPF calculator is available online and is free to use.

The interest that one earns on PPF is completely exempt from tax. Moreover, the maturity amount also qualifies for tax benefits as per the Income Tax Act, 1961.

Time PeriodAxis Bank PPF Account Interest Rate (per annum)
Q4 FY 2020-217.1%
Q3 FY 2020-217.1%
Q2 FY 2020-217.1%
Q1 FY 2020-217.1%
Q4 FY 2019-207.9%
Q3 FY 2019-207.9%
Q2 FY 2019-207.9%
Q1 FY 2019-208.0%
Q4 FY 2018-198.0%
Q3 FY 2018-198.0%
Q2 FY 2018-197.6%
Q1 FY 2018-197.6%
Q4 FY 2017-187.6%
Q3 FY 2017-187.8%
Q2 FY 2017-187.8%
Q1 FY 2017-187.9%
Note: The Axis Bank PPF interest rate is subject to change as per the Ministry of Finance announcements 

How to open a PPF account in Axis Bank?

Axis bank public provident fund account opening can be done either through offline or online mode.

One has to fill the form A viz public provident fund account opening form (PPF Form A) and submit it along with all the necessary documents like Aadhaar Card, PAN Card, and Photographs at the nearest Axis Bank branch.

Opening the online PPF account in Axis Bank is simple, and one has to follow the below steps:

  • Go to Axis Bank website and click on ‘Apply Now.’
  • Click on the ‘Open PPF Account’ button and Accept the disclaimer.
  • To proceed further enter the ‘Customer ID.’
  • Fill the Axis Bank PPF form and upload photographs and other KYC documents.

The Axis Bank PPF Account form requires the following details of the investor: 

  • Name
  • Address
  • PAN Card Number
  • Initial Contribution amount (minimum of INR 500)
  • Nominee details
  • Passport size photograph
  • Address proof and Identify proof

Also, if the account is opened in the name of a minor, then the minor’s birth certificate has to be submitted.

Eligibility to open a Public Provident Fund PPF account at Axis Bank

Following is the eligibility criteria to open PPF account in Axis bank:

  • Resident individuals can open the Public Provident Fund account at Axis Bank and can open Minor PPF accounts on behalf of their minor child.
  • No joint PPF account can be opened. Moreover, only one public provident fund account is allowed per person.
  • NRIs cannot open a Public Provident Fund account. However, if an existing public provident fund subscriber becomes an NRI within the 15 years of the account tenure, they can continue operating the account till maturity on non-repatriation basis.

Documents Required to open a PPF account at Axis Bank

Following are the documents required to open the PPF account with Axis Bank:

  • Axis Bank PPF account opening form – filled and signed
  • One passport size photograph
  • Identity proof: PAN Card, Aadhar Card, Passport, Driving License, Voter ID,
  • Address proof: Utility bills, passport, gas receipt, and bank statement with the cheque.
  • Birth certificate in case of a minor
  • Proof of date of birth for senior citizens
  • Form 60/61 in case the investors doesn’t have a PAN Card.

Axis Bank PPF Account Rules

Opening

One can open an Axis Bank PPF account either through online mode or offline mode. For opening a PPF account online with Axis bank, all one needs is the Aadhar Card. However, for opening the PPF account offline, one would need all the KYC documents. To open an Axis Bank PPF account, one has to be eligible. Following is the eligibility criteria:

  • Resident individuals
  • Guardian or parents on behalf of minors
  • Indians who moved out of the country before their investment in PPF matures can continue to operate their PPF account on non-repatriation basis.

Closing

Premature closure of Axis Bank PPF accounts is allowed only on the death of the account holder. However, investors can partially withdraw their PPF investment or even take a loan against it.

Deposit

The minimum amount of deposit in Axis Bank public provident fund is INR 500. And the maximum amount of investment in the bank PPF is Rs 1,50,000 in a financial year. One can invest the amount in a lump sum or in instalments.

Transfer

One can transfer their Axis bank PPF to another branch, or they can transfer to the post office and vice versa by writing the application mentioning the following details:

Reason for transfer

Bank and branch address along with IFSC code of current bank and the bank where it is to be transferred.

Withdraw

One can fully withdraw their investment in PPF at the time of maturity. However, the bank allows partial withdrawals after completion of 6 years from the account opening (from 7th year).

Features and Benefits of a PPF Account

Following are the features and benefits of the Axis Bank PPF account:

Tenure

PPF is a long term investment scheme, with an investment tenure of a Public Provident Fund is 15 years. Furthermore, the account holder can extend their investment duration by a block of five years. Also, it does not require any additional investments by the investor.

Eligibility

All Indian citizens can open a PPF account. However, Non-Resident Indians and Hindu Undivided Families cannot open the account. Also, a parent or guardian can open the account in the name of a minor.

Number of Accounts

An individual can open only one PPF account in their name. However, they can open the account on behalf of a minor. Also, one cannot open the PPF account jointly.

Minimum and maximum investment amount

The minimum investment amount for a PPF account is INR 100. Also, the minimum investment per financial year is INR 500. On the other hand, the maximum investment in a PPF account per financial year is INR 1,50,000. Furthermore, for all investments above INR 1,50,000, the account holder does not earn any interest.

Deposit frequency

The deposit frequency can be either once in a financial year or in a maximum of 12 instalments in a financial year. Also, it is mandatory to make at least one deposit every financial year for the scheme’s entire duration to keep the account active.

Mode of deposit

One can use any of the following modes of deposits to invest in a PPF account: cheque, demand draft, cash, or online.

Risk

The Government of India backs the PPF scheme. Therefore, it is among the safest long term investment schemes available. PPF investments offer risk-free and guaranteed returns. Furthermore, the scheme also offers capital protection. Hence the risk factor is almost nil for PPF investments.

Nomination

Investors can nominate a nominee for their PPF investments. One can do it either at the time of the account opening or subsequently at any time in the future.

Loan

Investors can avail a loan against their Public Provident Fund PPF scheme deposits. However, the loan is only available between the third and the fifth year of the account tenure. Furthermore, the loan amount cannot be more than 25% of the total investments made till the end of the second financial year. Also, one can apply for a loan directly online at the Axis bank website.

Additionally, PPF subscribers can also avail a second loan after the sixth financial year. However, to get this, the first loan should be paid entirely.

Taxation

Public Provident Fund investments come under the Exempt – Exempt – Exempt (EEE) category. In other words, the investment, interest earned and redemptions are all tax exempted. Investments up to Rs 1,50,000 in a financial year qualify for tax benefits  under Section 80C of the Income Tax Act, 1961.