The Public Provident Fund Scheme has long been one of the most popular tax saving and long term investment options in India. Some noteworthy benefits of this scheme include risk-free deposit (government-backed), easy availability, fixed rate of return and completely tax-free returns. At present, only three private sectors banks in India offer PPF accounts and the Axis Public Provident Fund (Axis PPF) account is among the most popular among these.
The interest rate offered on PPF accounts is determined by the Ministry of Finance and is the same across all banks and post offices that provide this scheme. The Axis PPF account interest rate is subject to change every quarter as and when the Ministry of Finance makes an announcement to that effect. The following are the current and historical Axis PPF interest rates*:
|Time Period||Interest Rate (per annum)|
|Q3 FY 2018-19||8.0%|
|Q2 FY 2018-19||7.6%|
|Q1 FY 2018-19||7.6%|
|Q4 FY 2017-18||7.6%|
|Q3 FY 2017-18||7.8%|
|Q2 FY 2017-18||7.8%|
|Q1 FY 2017-18||7.9%|
*Axis PPF account balance is compounded annually. Q3 FY 2018-19 rates are applicable from 1st October 2018.
Axis PPF Account Opening Procedure
At present, the Axis PPF account cannot be opened online. The following are the key steps in opening the Axis Public Provident Fund offline:
- Visit your nearest Axis Bank branch to get the PPF account opening form or download the PPF Form A online.
- Take a print of the downloaded form or fill out the paper form and submit at the nearby Axis Bank Branch.
- Provide cheque/draft/cash as initial account opening deposit (min. Rs.500).
- Provide photographs and self attested photocopies of KYC documents such as PAN, Aadhaar, etc.
- Carry the originals of the KYC documents with you for verification.
- The Axis Public Provident Fund account will be opened after verification of details is completed.
- Once the PPF account is up and running, you will receive a PPF account passbook with details of your credits, debits, account number, PPF balance, etc.
There are a few key eligibility criteria that need to be considered when opening an Axis Public Provident Fund account. The eligibility requirements for a PPF account are as follows:
- A resident Indian can open a PPF account in his/her name whether he is an employee, self employed, unemployed, student or retired.
- NRIs (Non-Resident Indians) are not allowed to open new PPF Account. However they can continue contributing to their existing PPF accounts till maturity.
- There is no maximum age limit for opening a PPF Account in Axis Bank.
- A minor PPF account can be opened by a parent/guardian in name of minor child. Only one minor account is allowed for each child.
- HUF (Hindu Undivided Family) cannot open an Axis PPF account.
- Axis PPF account cannot be jointly held.
Top features and key benefits of the Public Provident Fund Scheme are as follows:
- Minimum deposit required to maintain an Axis PPF account is Rs. 500/year.
- Annual cap on the amount that you can deposit in your Axis PPF account is Rs. 1.5 lakhs.
- Maximum number of deposits allowed in a year in Axis PPF account is 12.
- Axis PPF accounts support online (mobile/net banking) as well as offline deposits (cash/DD/cheque).
- You can provide nominee details at the time of Axis PPF account opening and you can also change these nominee details later.
Submission of KYC documents is mandatory when opening an Axis PPF account:
- Completely filled out PPF Form A.
- Passport Size Photograph of applicant.
- Self attested copies of ID proof – PAN, Aadhaar, Driving License, Voter ID, etc.
- Address Proof – Passport, Aadhaar Card, Electricity Bill, etc.
Mode of Deposit
You can deposit money into Axis PPF Account either by cash/cheque (offline) or through internet/mobile banking (online). The following are details regarding the available modes of making PPF account deposits –
- You can link your existing Axis savings/current account with your Axis Public Provident Fund account to make online transfers immediately.
- Your Axis PPF account can also be funded from other bank accounts using interbank transfer options such as NEFT, ECS and standing instructions.
- For offline PPF deposits you can use cash, cheque or draft.
Loan Against Axis PPF Account
As an Axis Bank Public Provident Fund account holder, you may be eligible to opt for a loan against PPF account. Such a loan is however only allowed from the 3rd year to the 6th year of the PPF account operation.
Axis PPF Balance Check
You can easily check the Axis PPF account balance online or offline and also view details of all debits/credits applicable to the account. The following are pointers regarding how you can check your Axis PPF balance:
- In order to check your Axis PPF account balance online, you need to first link your Axis savings/current account with your Axis PPF account and get internet/mobile banking activated.
- You can then log into your banking account online using your net banking or mobile banking credentials to check your PPF account balance online.
- To check your PPF account balance offline, you can get your Axis PPF passbook updated at the Axis Bank branch. It will contain details of all credits/debits of your Axis PPF account till date.
Axis PPF Withdrawal
The following are some key facts about the PPF account balance withdrawal process for Axis Bank:
- Partial withdrawal of available PPF balance may be made after completion of 5 years of account operation calculated from the 1st year of PPF account subscription.
- The amount that you can prematurely withdraw from your Axis PPF is capped at 50% of the PPF account balance in the year preceding the withdrawal.