How to make online payment to your PPF Account
Last updated: 2016-11-28 16:28:53 IST
PPF or Personal Provident Fund is one of the foremost forms of saving. A PPF account offers maturity amount that is totally tax free. Not just this, the interest earned on PPF account is one of the highest than that received on other financial instruments. These unique features make PPF accounts a lucrative investment avenue for both big and small investors. PPF has a greater locking period and hence it is one of the tools that foster retirement planning.
Owing to the immense popularity and advantages, PPF accounts are quite popular among customers. And the best part about these accounts is that they can be opened online too without even visiting any bank branch. PPF accounts can be opened in Post Offices as well as certain registered banks (both nationalized and private banks). While physical presence is mandatory for account opening in a post office, online account opening can be availed in case of banks.
Steps for online transfer to your PPF Account
Following is the step by step process for online transfer of funds into your PPF account.
- Add your PPF Account (opened in a bank) as a beneficiary into your online banking module. The payee name and the PPF account number should match exactly with that mentioned in your PPF account.
- Select the bank branch in which your PPF account is maintained. For example, if your PPF account is in State Bank of India then mention SBI and the corresponding branch name
- Enter payee account number as your PPF account number
- Once, the above mentioned details are filled in and submitted, your PPF account will be added as a third party account. You can now transfer funds from your online banking account to your PPF account via the standard online banking process.
NOTE: Transfer of funds from your online savings account to your PPF account is possible whether you have your PPF account and savings account in the same bank or whether you have your savings account and PPF account in different banks.
The best use of this facility of transferring funds from bank savings account to PPF account can be made by NRIs and those settled outside India. Such customers can deposit funds into their PPF account without having to visit a bank branch separately. Also, in case of any doubt regarding the process, the best way to go about this is to transfer a smaller dummy amount from your bank account to PPF and once the process gets confirmed, you can transfer the larger chunk of money.