Investment for your retirement is an essential part of your financial statement at the later stage of your life.
You can use various investment tools to do that however, one of the best is the Public Provident Funds. The interest rate offered by the PPF account is comparatively high if you compare it with other long-term investments.
Opening a PPF account is easy and you can choose any bank or post office to open the bank including the Indian Overseas Bank which is one of the most prominent Government banks in India.
In this article, we will discuss how to open a PPF account in the Indian Overseas Bank, Documents Required, features, etc.
Table of Contents
Features of PPF Account
The following are the features offered by PPF Account which make it an attractive option for you to apply-
- The tenure for investing in a PPF Account is 15 years which can be extended in blocks of 5 years until the maturity
- The maturity, interest earned amount is not taxable
- You can also avail loan of up to 35% of the investment made
- The minimum deposit amount is Rs.500/- and the maximum is Rs.1.15 Lakhs per month
PPF Account Interest Rate 2019-2022
The following are the interest rate offered by Government to the investors-
| Period | Interest Rate (p.a.) |
| 1 July 2021- 30 September 2021 | 7.10% |
| 1 April 2021 – July 2021 | 7.10% |
| 1 January 2021 – 31 March 2021 | 7.10% |
| 1 October 2020 – 31 December 2020 | 7.10% |
| 1 July 2020 – 30 September 2020 | 7.10% |
| 1 April 2020 – 30 June 2020 | 7.10% |
| 1 January 2020 – 31 March 2020 | 7.90% |
| 1 October 2019 – 31 December 2019 | 7.90% |
| 1 July 2019 – 30 September 2019 | 7.90% |
| 1 April 2019 – 30 June 2019 | 8.00% |
| 1 January 2019 – 31 March 2019 | 8.00% |
How to Open a PPF Account in the Indian Overseas Bank?
You can follow these steps to open a PPF Account in the Indian Overseas Bank-
- Visit the Indian Overseas Bank branch and ask for the PPF Account opening form
- After receiving the form, fill out the form with correct details like name, address, education qualification, PAN Card number, etc.
- Now, deposit the form with the initial deposit funds along with the documents mentioned below
- The bank representative will forward your PPF account opening application and further began the account opening process
- You’ll be notified about the account opening within 2-3 working days and when you receive the SMS, you’ll also be issued an account number and other bank details
Documents Required for Opening PPF Account in Indian Overseas Bank
The following are the documents required for opening a PPF Account in the Indian Overseas Bank-
- Duly filled and signed account opening form
- Copy of government-approved ID card along with the original for verification like PAN card, Voter ID card, Aadhar card, Driving License or Ration card
- Copy of address proof along with the original for verification like passport, ration card, gas receipt, bank statement, or any utility bill (electricity/water)
- Passport size photographs
FAQ
After maturity, the PPF Account holder has three options i.e.- Withdrawal funds, extend without investment, or extend with an investment option. You can choose any of them to advance your investment journey.
The PPF Account is guaranteed by the Central Government to its citizens and is 100% safe. Any court order or other orders by anyone cannot attach a PPF account to recover the funds in this account however, the Income Tax department can attach the account for recovery of tax dues.
No, PPF Account is not market linked account, the Government of India guarantees it.
You can deposit the fund 12 times a year, with no more than 2 deposits within a month.
The minimum lock-in period of a PPF Account is 6 years and then 2 years later i.e. after 8 years of opening the account, you can withdraw the funds.
In the case of the demise of the account holder, the account will immediately lapse and the funds accumulated in the PPF Account will be returned to the account nominee. In the case of the demise of the account holder, the account will immediately lapse and the funds accumulated in the PPF Account will be returned to the account nominee.
I’m Shiv Kumar, a graduate with a passion for finance, marketing, and technology. My journey into finance started with a desire to understand money management and investing.
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