Open Kotak Mahindra Bank PPF Account Online 2024

Kotak Mahindra Bank, headquartered in Mumbai, is an Indian banking and financial services company. It is India’s third-largest private sector bank by market capitalisation and offers various financial services and banking products for retail and corporate customers. One such offering is the Kotak Mahindra Bank PPF account, providing customers with the opportunity to earn favourable returns with assurance of complete safety. To know more about this investment instrument, continue reading this detailed blog. 

What is Kotak Mahindra Bank PPF Account?

PPF or Public Provident Fund is a savings scheme backed by the government. With this investment instrument, individuals can avail tax benefits on maturity amount and interest earned, and save for their retirement simultaneously. With a PPF account in Kotak Mahindra Bank, you can avail favourable interest rates and tax benefits at maturity. 

Key Features of Kotak Mahindra Bank Public Provident Fund Account

Here are some of the salient features of Kotak Mahindra Bank PPF account: 

1. The minimum tenure for a PPF is 15 years. You can extend it in blocks of 5 years. 
2. According to Section 80C of the Income Tax Act, your PPF maturity amount and interest are tax-free. 
3. For each financial year, you can invest a minimum of ₹500 and a maximum of ₹1,50,000. You can invest the money in a maximum of 12 instalments or a lump sum. 
4. The Indian government backs this investment instrument. So, you can expect fixed returns and complete capital protection. As the risk is minimal, PPF is ideal for diversifying one’s portfolio. 
5. You cannot open a Kotak Bank PPF account in joint names. 
6. You have to deposit at least once a year throughout the tenure of a PPF. 
7. A PPF account holder can make deposits either by cash, demand draft, cheque, or through online fund transfer. 
8. From the seventh financial year, a PPF account holder can partially withdraw his/her PPF amount.   
9. You can designate a nominee for your account at the time of opening the PPF account or afterwards.

Kotak Mahindra Bank PPF Interest Rates 2024

Currently, the interest rate for PPF is 7.10% at Kotak Mahindra Bank. It is the same for any bank you choose, as the Ministry of Finance decides the rate for every quarter of a financial year. 

The calculation of interest takes place each month but the credit to the investor’s account happens at the end of the year. As the calculation of interest takes place between the close of the 5th day and the last day of the month, an investor should ideally invest a fixed amount each month before the 5th day to earn interest for the entire month while maximising the returns. 

How to Open Kotak Mahindra Bank PPF Account Online?

Follow these steps to open a Kotak Mahindra Bank PPF account online: 

• Step 1: Use your customer ID and password and log in to Kotak Mahindra Bank net banking portal. 
• Step 2: Navigate to the menu bar and click on the ‘Open a New PPF Account’ tab. 
• Step 3: Choose between ‘Self Account’ and ‘Minor Account’ on the next screen. 
• Step 4: Click on the relevant option, enter essential details and verify. 
• Step 5: Enter bank details including branch name, IFSC code and so on. 
• Step 6: Enter the PPF amount. Note: You can invest a minimum of ₹500 and a maximum of ₹1,50,000 per financial year. 
• Step 7: You will receive a verification code (OTP) on your registered phone number. Enter the OTP to authenticate the transaction. 
• Step 8: Click on ‘Proceed’ and the bank will start the verification process. 

You will receive a notification message and email from Kotak Mahindra Bank that your PPF account has been successfully opened.

How to Open a PPF Account in Kotak Mahindra Bank Offline?

To open a PPF account offline you need to follow these steps: 

• Step 1: Visit your nearest Kotak Mahindra Bank branch and ask for a PPF application form. 
• Step 2: Fill out the form with essential information and attach supporting documents. 
• Step 3: In the space for attaching photographs, affix the passport-size photos. 
• Step 4: Submit the form to an authorised representative. 

The bank will inform you about the account opening in due time. 

Documents Required to Open a PPF Account in Kotak Mahindra Bank

Apart from the PPF application form and passport-size photos, you require the following documents to open a PPF account in Kotak Mahindra Bank. 

1. Identity Proof 

1. Aadhar Card 
2. PAN Card 
3. Driving Licence 
4. Voter’s ID Card 
5. A letter issued by the National Population Register

2. Address Proof  

1. Telephone Bill 
2. Electricity Bill 
3. Passport 
4. Ration Card 
5. NREGA job card

3. Age Proof (In case of Minors) 

1. Birth Certificate 
2. School Passing Certificate 

Eligibility to Open a PPF Account in Kotak Mahindra Bank

To be eligible to open a PPF account in Kotak Mahindra Bank you have to be one of the following: 

1. Individuals
2. Individuals on behalf of a minor 
3. Indian residents 

Non-resident Indians can only invest in a PPF if he/she has opened the account while being an Indian resident. Furthermore, they cannot only keep the account for 15 years and cannot extend it further. 

Kotak Mahindra Bank PPF Withdrawal Rules

The table below will lay out in detail the Kotak Mahindra Bank PPF withdrawal rules: 

Kotak Mahindra Bank PPF Formula and Calculation

You can calculate your expected return on PPF with this PPf formula: 

F = P [({(1+i) ^n}-1)/i] 

In this formula, 

• F = Maturity amount 
• P = Principal amount 
• i = Interest rate 
• n = tenure 

Let us say you deposit ₹5,000 per month. With this information you can calculate the maturity amount. 

F = 5000 [({(1+0.071) ^15}-1)/0.071] = ₹1,35,607.

How to Use a Kotak Mahindra Bank PPF Calculator?

One can calculate the maturity amount using the above-mentioned formula. However, using an online calculator is easier and ensures a more accurate result every time. 

Here’s how you can use an online PPF calculator to find out the value of F (maturity amount) for your Kotak Mahindra Bank PPF account: 

• Step 1: Navigate to an online PPF calculator and enter the yearly investment amount.
• Step 2: Enter the tenure for which you want to continue your investment.  

The calculator will show you data including the total investment amount, your maturity value and total interest earned. 

Steps to Check Kotak Mahindra Bank PPF Balance 

You can check Kotak Mahindra Bank PPF account balance using online and offline methods. 

1. Online 

• Step 1: Log in to your Kotak Mahindra Bank net banking portal. 
• Step 2: Navigate to the ‘Account Balance’ section and click on it. 

A new screen will show you your account balance and status. 

2. Offline

• Step 1: Visit the nearest branch of Kotak Mahindra Bank. 
• Step 2: Update your PPF account passbook. 

You can check your account balance after the update is complete. 

How to Download Kotak Mahindra Bank PPF Account Statement? 

The process of downloading a Kotak Mahindra Bank PPF account statement is simple. You have to have an active mobile or internet banking facility for your PPF account before following these steps to download your account statement: 

• Step 1: Use your credentials to log in to Kotak Mahindra Bank’s net banking portal.  
• Step 2: Check the account balance and navigate to ‘Download PPF Account Statement’ and click on it to complete the process. 

Extension of Kotak Mahindra Bank PPF Account 

A PPF account holder can extend his/her PPF tenure in two ways.  

1. Investing in the Existing Balance 

Here are some factors to consider before prioritising this approach. 

1. You have to inform Kotak Mahindra Bank about your choice of continuing the investment within 1 year after maturity. 
2. This is the way to go if you do not want to make fresh contributions to your PPF account.
3. You can continue the existing investment and invest in the same. 
4. You can partially withdraw your account balance only once during the 5 years of extension. 

2. Withdrawing the Existing Balance and Making Fresh Investments

The following are some important factors to consider before prioritising the approach of extending the PPF tenure by withdrawing the existing balance and making new investments. 

1. You have to inform the bank about your choice of withdrawing the existing balance and making fresh investments by submitting Form 4 within 1 year after maturity. 
2. If you do not submit this form, the bank will treat your account as irregular and you will get no interest or tax benefits on fresh contributions. 
3. For fresh contributions, the minimum amount per year is ₹500. 
4. A Form 4 should accompany each fresh contribution. 
5. During the extension period, an account holder can withdraw up to 60% of his/her account balance.  

Things to Note While Opening Kotak Mahindra Bank PPF Account

Apart from its duration, contribution frequency, benefits, eligibility criteria, necessary documents, and application process, you should take note of the following things while opening a Kotak Mahindra Bank PPF account: 

1. In case you discontinue the account, you cannot avail loans against it. 
2. You can extend your PPF account in 5-year blocks. There is no limit to the number of times one can extend it. 
3. The contributions you make towards your PPF account are exempt from Wealth Tax too. 
4. You cannot attach the PPF account to pay off a debt or liability. 
5. If you fail to pay the minimum contribution of ₹500 each year, you have to pay a penalty of ₹50 for each year you have failed. 
6. You can add minors as nominees, but, if you have opened the account on behalf of a minor, the nomination facility is not available. 
7. You can transfer your PPF account to a Post Office and other banks. 

How to Transfer Kotak Mahindra Bank PPF Account? 

If you want to transfer your PPF account from Kotak Mahindra Bank to some other bank you can follow the steps below: 

• Step 1: Visit your nearest Kotak Mahindra Bank branch with your PPF account passbook and apply for a transfer.  
• Step 2: Surrender the passbook and the bank will close your account. 

After that, Kotak Mahindra Bank will transfer the necessary documents to the new bank. The documents are: 

1. The existing passbook
2. Your nomination form
3. A certified copy of the PPF account details 
4. Your transfer request application 
5. Kotak Mahindra Bank’s acknowledgement of the transfer request 
6. A specimen of your signature 
7. A cheque or demand draft of the balance in your existing PPF account 
8. The original PPF account opening application 

The new bank will inform you after receiving these documents. You have to follow the steps below to complete the process: 

• Step 3: Visit the new branch and fill out the new application form. 
• Step 4:  Submit the form attaching supporting documents for KYC. 

After the creation of your new PPF account, the bank will offer a new passbook. 

Loan Against Kotak Mahindra Bank PPF

You can take a loan against Kotak Mahindra Bank PPF at low interest rates. Before availing this facility, go through the following conditions: 

1. The loan facility is available in case you need the loan before completing 6 years of investment. 
2. You can avail the loan between the 3rd and 5th year of starting the PPF. 
3. You can get up to 25% of the account balance which was there 2 years before the loan application. 
4. The loan against PPF interest rate is 1%. 
5. 36 months is the maximum repayment tenure for the loan. 
6. After complete repayment of the principal amount, you have to pay the interest within 1 or 2 instalments. 
7. If you fail to repay the loan within 36 months the interest rate will jump to 6%. 
8. The PPF account balance will not earn any income until you repay the loan. 

Final Word

Now with more awareness regarding this investment instrument, you can open an account at Kotak Mahindra Bank easily. Whether you are planning for retirement or your child’s future, the Kotak Mahindra Bank PPF account offers a tax-efficient way to grow your savings. 

Although a safe investment option, it is in your best interest to consult with a bank representative regarding all scheme-related details before investing your hard-earned money. 

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Disclaimer

This article is solely for educational purposes. Stable Money doesn't take any responsibility for the information or claims made in the blog.