Online Open PPF Account – How to Open PPF Account in Bank of India
PPF Account Open In Bank of India Online – PPF (Public Provident Fund) Bank of India – after reading this article you will know about Public Provident Fund and what is Public Provident Fund Account, how to open PPF Account in the bank of India.
Customer will get the interest rate on their Public Provident Fund account as per annual fixed by the government and in this account applicant have to minimum deposit is Rs.500/- and maximum Rs.1,50,000/- in a financial year.
PPF account can be opened by an individual or a minor through the guardian, Joint account is not permissible for PPF account open, NRI’s cannot get the benefit of PPF Account.
The deposit can be a lump sum or in installment – maximum in 12 in a year, if your PPF account got discontinued and now you want to continue then you have to pay Rs.50/- penalty for each default FY.
Facility of nomination is available, PPF account cannot be attached by any court.
As per Public Provident Fund scheme 1968, the loan facility against the PPF Account deposits is available from 3rd to 6th year of deposit to the extent of 25% of the amount deposited as at the end of the last year. The loan is repayable in 36 months.
The account is transferable from one Post office to another and from Post office to Bank and from Bank to Post office.
Deposits in PPF qualify for rebate under section 80-C Income Tax Act and interest on deposits is totally tax free.
What is PPF Account / Know more about PPF account & tax exemption
watch below video for more clarification about PPF.
How to Open PPF Account Online in Bank of India
Public Provident Fund is a long term investment options offered by the Indian Central Government for residents of the country. Anyone can open PPF account directly through a post office or through a bank.
Here know, how to open PPF account through the various banks offering, PPF account can only be opened at specified bank branches (Check specified bank branch list to open PPF Account), below mention documents you have to submit at the time of PPF Account Opening.
- PPF Account Opening form (Download)
ID proof one of them required
- Pan Card
- Driving licence
- Voter ID
Address Proof one of them required
- Telephone Bill
- Electricity Bill
- Ration Card
- Two Current Passport Photo
- Pay slip
After prepare all required documents you have visit at your branch and submit all documents, or you can also apply online for PPF Account on bank website via internet banking.
Keep in mind during visit at your bank branch for PPF Account do not forget to carry your original documents and all photocopy should be self-attested.
PPF Account Benefits and key features
- Interest earned is compounded yearly. The current rate of interest on a PPF account is fixed at 8.1% p.a.
- Partial premature withdrawals can be made every year from year 7 withdrawals are subject to conditions. Complete withdrawal of funds can be made only at maturity.
- Loans can be availed against funds held in the PPF account from year 3 to year 6.
- According to Public Provident Fund Scheme 1968, the facility of loan against the PPF deposits
is available from 3rd to 6th year of deposit to the extent of 25 % of the amount
deposited as at the end of the last financial year. The loan is repayable in 36 months (for more details kindly visit http://www.bankofindia.co.in/)
How to Withdraw PPF Amount
There is a lock-in period of 15 years and the money can be withdrawn in whole after its maturity
period. However, pre-mature withdrawals can be made from the end of the sixth
financial year from when the commenced. The maximum amount that can be withdrawn
pre-maturely is equal to 50% of the amount that stood in the account at the end of 4th year preceding
the year in which the amount is withdrawn or the end of the preceding year whichever is lower