Public Provident Fund, one of the most preferred financial instrument due to its attractive interest rates and tax friendly rules.
Most of the individuals prefer to invest in PPF as it can help build a good retirement corpus. But the difficulty arises when it comes to making payment as most of them skip the last date to contribute.
The investment made under PPF is eligible for tax deductions under Sec 80C of Income Tax Act. So to declare the same, one should make the investments on time (before filing for tax returns).
Now most of the banks offer the online facility to open and contribute online. Individuals have to check with their respective bank.
Banks offering online PPF facility are SBI, Canara Bank, ICICI Bank and Axis Bank.
Simple steps to transfer funds to PPF Account
To transfer funds from PPF account individuals should be registered with net banking.
- Login to your Account
- Click on Third party payments
- Add PPF account as a beneficiary
- Note that payee name and account number should be same as in your PPF account.
- Once the beneficiary is added, one can transfer funds.
While customers can transfer their funds to PPF account from same bank savings account or different bank savings account.
If your bank is not allowing PPF transfer from different bank or post office. Then one can transfer amount to the savings account where the PPF account is held. Click to know more.
Other ways to Contribute
Individuals can contribute either by giving ECS mandate to the bank to deduct specified amount on a particular date every year. In such cases, one needs to ensure that sufficient balance is maintained in the account on a particular date.