Yes Bank PPF Account is a savings-cum-tax efficient avenue sponsored by the government. It can be opened by individuals for a tenure of 15 years at any of the Yes Bank branches across the nation. The minimum amount that one can deposit starts from as low as Rs. 500 and goes up to a maximum of Rs. 1,50,000. The maturity amount and interest earned on the Yes Bank PPF scheme is exempted from tax. Owing to these benefits, PPF is considered as one of the most tax-efficient and popular saving schemes in India.
How to Open PPF Account in Yes Bank?
At present, Yes Bank does not provide the facility to open Yes Bank PPF account online. You can still approach the authorized Yes Bank branches which accept applications for PPF accounts and complete the formalities to open a new PPF account. However, if you are an existing customer with your savings account in Yes Bank and an active internet banking service, you can download the account opening application form and submit the duly filled form to the relevant branch.
Documents needed to open a PPF account in Yes Bank
Below given are the documents required to open a PPF account at Yes Bank:
- The PPF account opening form or Form A
- A passport-size photograph
- Any address proof as per the KYC norms
- Nomination form
- Copy of your PAN card (Permanent Account Number)
Eligibility for Opening a Yes Bank PPF Account
- PPF Account can be opened by an Indian resident only
- A person can open only one PPF account under his/her name
- NRIs who had opened a PPF account while they were resident Indians can operate the account until the maturity, i.e. 15 years with no option for extension.
- Minors can also open a PPF account based on a legal age proof and with the help of their parents/guardian
- HUFs are not eligible to open PPFs after 13th May 2005. All PPF account opened before this date can be operated till the maturity period of 15 years with no extensions
Key features and Benefits of Yes Bank PPF Account
Rs. 500/- per annum is the minimum amount required to be to start a PPF account. The accounts in which deposits are not made for any reason are treated as inactive accounts and such accounts cannot be closed before maturity. The inactive accounts can be revived by payment of Rs.500/- with a default fee of Rs.50/- for each defaulted year.
Rs. 1.5 Lacs per annum is the maximum deposit amount. The deposit in the PPF account can be made in one lump sum or in instalments.
A PPF account comes with a mandatory lock-in period of 15 years. An account, on the completion of fifteen years, can be extended for a further period of five years at a time.
- The interest is provided as per the rates declared by the Government periodically
- Current Yes Bank PPF interest rate 2020 is 7.1%
- The interest is compounded annually
- The interest for a particular month is calculated on the minimum balance available in the account from 5th of a month to the last date of the month.
- In case of a cheque drawn on other Banks, date of realization of the cheque shall be the date of deposit.
Nomination facility is available under Yes Bank PPF scheme
A PPF account can be transferred from a Yes Bank branch to Post Office and vice versa and also from a branch of Yes Bank to another Yes Bank branch. However, note that a PPF account cannot be transferred from one person to another. Even if the depositor is no more, the nominee cannot continue the account.
Loans can be availed against your Yes bank from 3rd to the 6th financial year. The account holder can apply for availing a loan consisting of a sum not exceeding 25% of the amount that stood to credit at the time of the completion of the second year immediately preceding the year in which the loan is applied for.
Any time after the completion of 5 years from the end of the year in which the account was opened, the account holder can withdraw from the balance to his credit not more than 50% of the amount that stood to the credit at the end of the 4th year immediately preceding the year of withdrawal or at the end of the preceding year, whichever is lower.
An account holder is allowed to close the PPF account prematurely subject to certain conditions
Interest income is totally tax-free from tax
Yes Bank PPF Account – Frequently Asked Questions
Ques. How much return is expected on Yes Bank PPF after 15 years?
Ans. The maturity amount received by the account holders in their PPF account after 15 years depends on the principal amount invested and the interest earned on it.
Ques. Can I close PPF account before maturity?
Ans. Yes. But only once it has completed 5 financial years and you should have a strong reason such as:
- Higher education of your children.
- Serious illness of your spouse, children, or yourself.
Ques. What are the options available after the PPF maturity?
Ans. Once the PPF matures, there are three options available:
- Either withdraw the full invested amount or
- Extend the PPF account for five years without any additional contribution, or
- Extend the account for 5 years but with a regular investment.