Personal Finance

How to deposit money in PPF account using DakPay app? Here's a step-by-step guide

Updated : January 16, 2021 12:20 PM IST

Public Provident Fund or PPF was introduced by the National Savings Organisation in 1968 to help investors mobilize small savings.

According to experts, PPF gives one of the highest returns among the safest fixed income products.

Public Provident Fund or PPF—a long term and popular investment scheme —was introduced by the National Savings Organisation in 1968 to help investors mobilise small savings. It is offered by post offices and banks.

According to experts, PPF gives one of the highest returns among the safest fixed income products. This is because of its compounding feature.

On top of that, PPF also offers the best tax saving options. The maturity amount and the overall interest earned during the period of investment are tax-free.

PPF has a lock-in period of 15 years and individuals can invest Rs 1.5 lakh in a year in it.

The interest rate on PPF is reviewed every quarter and may change depending on the government announcements. At present, it offers a tax-free return of 7.9 percent annually.

In order to open a PPF account with the post office, customers are required to visit the office once and then they can handle the account online with India Post Payments Bank (IPPB) app.

The government has recently unveiled the DakPay app, which is a simplified payment solution that offers access to banking and payments products and services. This app gives access to banking services and postal products online and is a unique concept where one can order and avail of postal financial services at doorsteps.

For depositing money online using the IPPB app after opening the account, customers must have the PPF account number and customer ID.

Here are the steps to deposit money in a PPF account using the DakPay app:

Step 1: Open the DakPay app

Step 2: Go to the 'DOP Products' section and tap on PPF. DOP stands for Department of Posts

Step 3: Enter the PPF account number and DOP customer ID

Step 4: Select the installment period and amount

Step 5: Hit on 'transfer' and a notification will be received once the amount is transferred

It's important for investors to know that the maturity period of the PPF account is 15 years. However, the same can be extended within one year of maturity for a further five years, and so on.

Also, the PPF account can remain active even after maturity, without making any fresh contributions. It continues earning tax-free interest after maturity, according to experts.

How to deposit money in PPF account using DakPay app? Here's a step-by-step guide

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