Canara Bank provides a variety of products related to savings schemes introduced by the government as well as the bank itself. Public Provident Fund (PPF) is one of the savings cum deposits scheme introduced by the Government of India in the year 1968 with an intention to provide retirement benefits to all the citizens of the country. PPF is a government-backed scheme provided by Canara Bank. A Canara Bank PPF account is of the popular choice of investment schemes even after decades of its introduction owing to the benefits it provides.
The Public Provident Fund or PPF is a low-risk long term investment scheme which also provides tax-saving benefits under the Section 80C of the IT Act. PPF is a Government of India backed investment option and hence carries low levels of risk which ensures guaranteed returns on maturity along with tax deduction of up to Rs. 1.5 lakhs annually. At present, a PPF account can be opened with various public sector banks in India including Canara Bank as well as with select leading private sector banks and India Post offices.
The Canara PPF account offers multiple benefits to the depositors. Some of them are listed below:
Income Tax Rebate – The interest earned on the PPF account is tax-free and the contributions made towards this account are eligible for tax rebate under section 80C of the Income Tax Act.
Nomination Facility – Canara Bank offers nomination facility on PPF account which means a depositor can nominate one or more person to receive the amount on their behalf in case of any unforeseen incident.
Loan Facility – Loans can also be availed against the amount in their PPF account subject to certain conditions,
Wealth Tax – One of the key benefits of Canara PPF account is the balance amount held in the Canara Bank PPF account is free from any wealth tax.
Canara Bank PPF Account allows all Indian citizens to open a Public Provident Fund account. You can open it online by filling in Form A with your particulars. The Canara Bank PPF account opening online process is quick and hassle-free. The following are the key steps to the online PPF account opening procedure:
How to Open Canara Bank PPF Account Offline?
Interested individuals can also open a Canara Bank PPF Account through the offline method by visiting any nearest branch of Canara Bank. The PPF Account opening form can at Canara Bank be obtained online or at any branch of the bank. This form (Form A) is very simple to fill and depositors have to provide some basic information which includes the following.
You will then have to fill and submit the application form with all the mandatory information at the branch. The deposit fund can also be submitted to the bank official while applying for an account through the offline process. The payment can be made through cheque or pay-in slips.
The eligibility criteria for opening a Canara PPF Account are as follows :
Partial Withdrawal/Loan in Canara Bank
Canara Bank PPF Account – FAQs
Ques. How much return is provided on Canara Bank PPF after the completion of 15 years?
Ans. The maturity amount depends on the principal amount invested and the interest earned on it.
Ques. What is the penalty for reviving the inactive PPF accounts?
Ans. Depositors can revive their PPF account by paying a penalty of Rs. 50 for each year that the account was inactive along with the minimum contribution of Rs. 500 as well for all such years in Form B.
Ques. Can a person open a PPF account with Canara Bank by visiting any of the branches of the bank?
Ans. Yes, Canara bank is a nationalized bank and therefore all the branches of the bank are eligible to open a PPF account.
Ques. How is the interest rate calculated on Canara Bank PPF account?
Ans. The Canara Bank PPF interest rate is reviewed every quarter and is compounded annually for this scheme.