An Indian Bank PPF account is one of the popular long-term investment schemes that provide substantial returns and tax benefits as well. This scheme is backed by the Government of India and also offers an attractive interest rate with ensured safety. The returns are fully exempted from tax under Section 80C of the Income Tax Act. Depositors can save tax in the range of Rs. 500 to a maximum Rs. 1,50,000 in a financial year and can also get added facilities such as loans against the deposit, partial withdrawal and the extension of your account.
Key Features of Indian bank PPF
- Provides an attractive interest rate of 7.1% that is fully exempted from income tax under section 80C
- Long-term investment of 15 years which inculcates the habit of savings in depositors
- The deposit amount can start from as low as Rs.500 and go up to a maximum of Rs.1,50,000 in one financial year
- Deposits in PPF can be done in a maximum of 12 transactions
- A loan can be availed between the 3rd to the 6th financial year against your Indian Bank PPF deposit
- Partial withdrawal facility can be availed from the 5th financial year onwards
- The account can be extended in a block period of 5 years after the maturity period
How to open an Indian Bank PPF account online?
At present, there is no Indian Bank PPF account opening online option. However, if you want to open a PPF account with Indian bank via the offline mode, you can follow the below-given steps:
- Get an application form by visiting your nearest Indian bank branch
- Fill the form and submit with self-attested copies of supporting documents such as Aadhaar, PAN, Voter ID, etc. along with photographs
- The initial deposit amount also needs to be made to complete the process
- Once your Indian Bank PPF account is active, you will be provided with a passbook for the same which has the list of current transactions, PPF account number, IFSC and other important details pertaining your Indian Bank PPF account.
Important Points to Remember while Opening an Indian Bank PPF Account
- As per the Indian law, only one PPF account is allowed in an individual’s name
- The minimum or initial deposit amount is Rs 100
- PPF account for Minors cannot be opened via online mode; you will need to visit any of the Indian bank branches.
- NRIs cannot open an Indian Bank PPF account.
- You can visit the nearest Indian Bank branch and request for nomination updation/change (if required).
- Joint-account holders cannot open a PPF account online.
- Customers need to visit their nearest Indian Bank branch to get the passbook for their PPF account.
Indian Bank PPF Account – Loan Facility
Indian Bank PPF Account holders can opt for a loan against PPF option subject to certain key criteria:
- Loan against Indian Bank PPF option can be availed between the 3rd and 6th years of account opening
- The maximum amount that can be availed is up to 25% of the PPF account balance recorded at the end of the 2nd year
- The Indian Bank PPF loan interest rate is charged at 2% over the applicable PPF interest rate
Extension of Indian Bank PPF Account
- Indian Bank PPF account can be extended even after it has matured i.e. after the completion of 15 years from the date of account opening
- The depositor has to place an Indian Bank PPF account extension request within 1 year of maturity of the account
- The Indian Bank PPF can be extended in a block of 5 years with or without additional deposits as per the subscriber’s convenience
- During the extension period, the PPF account will continue to earn interest at the applicable rate on the account balance
- NRIs those who have an active PPF account cannot extend their account post 15 years
Indian Bank Public Provident Fund – FAQs
Ques. Who is eligible to open a PPF account in Indian bank?
Ans. Any Indian citizen can start a PPF account with Indian bank. One can open one in their own name or on behalf of a minor.
Ques. What happens once the Indian Bank PPF account matures?
Ans. Once the maturity period of 15 years is over, the account holders can partially withdraw the money from their PPF account. The amount standing to the credit of the account, including interest will be paid to the investors in their desired bank account. For making the partial withdrawal, a Form C is needed to be filled completely and submitted to the concerned branch where your PPF account lies.
Ques. How much return I can expect on PPF after 15 years?
Ans. The maturity amount in the PPF account after 15 years depends on the principal amount chosen and the interest earned on it.
Ques. Can I Deposit two times in a month in my PPF account?
Ans. Yes, investments can be made twice a month but for calculating the deduction under section 80C of the Income Tax Act, only 1,50,000 will be considered. The minimum and maximum investment amount in a PPF account are Rs 500 and Rs 1,50,000 respectively in a financial year for claiming income tax benefit. However, it is always beneficial to make the investment before the 5th of the month in order to claim the interest for the full month.