PPF, abbreviated for Public Provident Fund, is a long-term, government-supported investment with a maturation period of 15 years. The fact that it ensures tax-free returns and has a risk-free nature is enough to show why it’s been a preferred investment tool for millions of Indians.
You should regularly conduct a PPF balance check because this investment should be made over a prolonged period of time. You can currently check your PPF balance both offline and online. You must visit the nearby bank branch to determine your PPF account balance.
Before that, you must apply for digital access to the account and link your PPF account to an active savings account.
Ways To Check PPF Balance
One can perform a PPF balance check both offline and online. You can also go to the nearest post office to check your PPF balance. Moreover, people living in remote areas of the nation with little to no access to banks and internet facilities often rely on their post office to open PPF accounts. So, the three popular modes of checking PPF balance include:
● PPF balance check via offline mode (at a bank)
● PPF balance check via online (net banking)
● PPF balance check via post office (physical visit)
Checking PPF Account Balance at Bank
If you have a PPF account at any banking institution but didn’t activate the net banking feature, you can perform a PPF balance check offline by simply visiting the bank and updating the passbook. Here are a few pointers on how to check PPF balance offline by visiting the bank:
● When you open a PPF account with a bank, it provides you with a passbook.
● This passbook contains information like your PPF account number, debits/credits to your PPF account, bank branch details, and PPF account balance.
● You’ll have to keep visiting the bank branch periodically to get your PPF account passbook updated.
● Once you’re done updating, the passbook will show you every transaction detail performed on the PPF account while displaying the current balance.
Note: Some banks have begun establishing automatic passbook updating kiosks that are staffed around the clock. To update your passbook, you often need to visit your bank within business hours.
Checking PPF Account Balance at Post Office
When it comes to a PPF balance check at a Post Office, things work in quite a similar manner. Nevertheless, here are a few details that will help you with your PPF account balance check in no time and without any hassle:
● You can only open PPF accounts at sub post offices or head post offices where they offer this facility to all.
● To check your PPF account balance, you must have your PF account number and establishment code, and the details are shown on the page. For instance, if your PF number is WB/KO/124C/496, your establishment extension is C, and the establishment code is 124.
Checking PPF Account Balance Online
You can easily learn how to check PPF account balance online with a few simple steps. But the best part is that this method lets you perform a PPF balance check 24/7. However, you can only enjoy the online benefit if you hold a PPF account at any RBI-registered banking institution.
Here are a few aspects that will help you conduct a seamless PPF balance check:
● You must link your PPF account with your existing savings account at the bank. In several instances, banking institutions let you create a PPF account only when you hold an existing savings account.
● Ensure to have a bank account with an activated net banking facility.
● To check the information on your multiple accounts, including the PPF one, you must sign up with your net banking credentials.
● Once you sign in, you can evaluate your existing PPF account balance.
● Some extra features and services accessible via net banking may comprise - the seamless transfer of funds into your PPF account digitally, establishing standing protocols for your PPF account, downloading PPF balance check statements, and more.
Banks frequently offer a variety of online services. Thus the extra services provided via the bank’s online portal may also vary.
Interest Rate of PPF Account
The PPF earns interest on the PPF account balance in a certain amount. Since 2016, there has been a steady decline in lending rates, which have been oscillating for several years.
April 2020 through June 2020 had an interest rate of 7.1% for PPF. The PPF interest rate is 7.10% for the quarter spanning July 1st, 2021, to September 30th, 2021.
Previously, the PPF interest rate owed was determined annually or as needed. The rates, though, have been modified and announced quarterly starting April 2017.
PPF Interest Calculation:
The minimum balance in your PPF account from the fifth to the last day of each month is used to calculate the PPF interest. If someone wants to contribute a significant sum at any point during the year, they must do so by the fifth of that specific month, at the latest. You can do this to earn a return on the sum for the entire month.
Why Is It Important To Check Your PPF Account Balance
● A person who regularly checks the amount of his PPF account could simply determine how much interest was earned on each investment. This rate may fluctuate every quarter, according to the Finance Ministry.
● As a result, throughout the financing tenure, the interest rate fluctuates. At the conclusion of each fiscal year, this interest is transferred to the PPF account of the user.
● Predicting the corpus that will be received after an account matures is made easier with continuous inspection of the PPF account check balance.
● One may choose to make a partial withdrawal after investing in PPF for five years. As a result, regular checks on the PPF balance will reveal how much money a person will get following the withdrawal.
● The accessibility of cash during situations of need is perhaps the most crucial component of the PPF balance check.
● To fund their necessities, one can obtain collateral-free credit against the PPF balance. An applicant may apply for this loan between the third and sixth fiscal year.
● In the second year before the credit application period, the person may obtain money equal to 25% of the remaining PPF balance.
● Hence, performing a PPF balance check in advance is essential to determine how much of a loan you can ask for.
To reap several advantages, it is clear that all bank customers must periodically check their PPF balance. If you wish to know your PPF account balance, the above methods are simple to comprehend and implement.
More About Savings Schemes
Frequently Asked Questions
No, a PPF account cannot be closed before it reaches maturity. Nevertheless, the account may be terminated if the account owner passes away before it reaches maturity. Premature account closing is considered if the account owner is incapable of making any further payments for a duration of five years owing to health issues or financial difficulties.
Yes, a PPF account allows for nomination changes. To modify your nomination, fill out Form F and submit it.
Your PPF account may have a lower balance for several reasons, including:
● Only at the fiscal year’s end, on March 31st, is the interest computed.
● A loan that you took out against your PPF balance can be deducted.
● Quarterly adjustments are made to the interest rate.
● If a payment is made just after the fifth day of the month, interest will only start to accrue the following month.
● Make frequent investments to raise the balance in your PPF account. To automatically transfer money from your savings account to your PPF account regularly, you can choose this option.
● To start off the fiscal year with a solid corpus that will produce interest, deposits must be made.
No, the interest you earn won’t be subject to taxation. Section 10 (15) of the Income Tax Act provides a total exemption for investment earnings.
Yes, you must have a valid UAN and make a missed call to 011 229 01 406. Your name, account balance, PPF account number, and age will all be included in an SMS sent to you.