PPF account is a retirement cum savings account that is backed by the Government of India and offers a higher rate of returns than any other saving instrument.
If you are a young employee of a company and wanted to save for your retirement then PPF Account is a great instrument for that. The funds you deposit in the PPF Account will be used by the government for various projects.
You’ll receive interest on the deposit amount and after the PPF Account attains maturity, you’ll be able to withdraw the funds from your account easily.
There are added benefits to the PFF Account as well and the best part is that you can open the PPF Account in any of the bank or post office branches including Government Banks in India.
Punjab and Sind Bank is one such bank where you can open your bank account easily. In this article, we will discuss how to open a PPF Account in Punjab and Sind Bank, Documents required, etc.
Table of Contents
Benefits of PPF Account
The following are the benefits of the PPF Account in Punjab and Sind Bank-
- Fixed returns meaning the Ministry of Finance declares the rate of interest
- The returns that you’ll get will be compound-based interest
- When you invest in the PPF Account, you will be eligible for Income Tax Benefit under section 80C
- The account has a maturity period of 15 years and thereafter, you can extend the account in a block of 5 years until 70 years of age
- You can start investing in the PPF Account with as low as Rs.500/- and invest up to 1,50,000/- per year
- You can also avail loan against the PPF Account with low-interest rates
- A partial withdrawal is also allowed from the seventh year onwards.
PPF Account Historic Interest Rates
The following are the interest rates offered by the PPF Account-
| Year | Rate of Interest |
| From 1 April 2020 to 31 March 2022 | 7.1% |
| From 1 July 2019 to 31 March 2020 | 7.9% |
| From 1 October 2018 to 30 June 2019 | 8.0% |
| From 1 January 2018 to 31 September 2018 | 7.6% |
| From 1 July 2017 to 31 December 2017 | 7.8% |
| From 1 April 2017 to 30 June 2017 | 7.9% |
| From 1 October 2016 to 31 March 2017 | 8.0% |
| From 1 April 2016 to 30 September 2016 | 8.1% |
| From 1 April 2013 to 31 March 2016 | 8.7% |
| From 1 April 2012 to 31 March 2013 | 8.8% |
| From 1 December 2011 to 31 March 2012 | 8.6% |
| From 1 March 2003 to 30 November 2011 | 8% |
| From 1 March 2002 to 28 February 2003 | 9% |
| From 1 March 2001 to 28 February 2002 | 9.5% |
| From 15 January 2000 to 28 February 2001 | 11% |
| From 1 April 1999 to 14 January 2000 | 12% |
How to Open PPF Account in Punjab and Sind Bank?
You can follow these steps to open the Public Provident Funds Account in Punjab and Sind Bank-
- Visit the nearest Punjab and Sind Bank premises and ask the bank representative for the account opening form for PPF Account
- Now, fill out the application form with details like name, address, bank account details, PAN Card details, Aadhar Card details, etc.
- After filling out the application form, submit the application form to the bank representative followed by attaching all the documents mentioned below
- Now, the bank representative will review your application form and documents
- You’ll also have to deposit the initial deposit funds at this point
- After successful processing of your PPF Account, your account will be opened and you’ll receive an SMS stating your bank account opening
- You’ll also be issued with a PPF Account number using which you can manage your PPF Account
Documents Required for PPF Account
The following are the documents required for the PPF Account-
- Duly filled Punjab & Sind Bank PPF account opening form
- Nomination Form
- Passport size photograph
- Copy of PAN card/ form 60-61
- Aadhar Card/ Driving license or any other identification IDs
- Residential proof like Utility bills, credit card bills, etc.
Important Guidelines for PPF Account
The following are the important guidelines for a PPF Account that you’ll have to follow-
Eligibility
- Any Indian Citizen can open the PPF Account
- Even parents of minors can also open a PPF Account in the name of their children
- NRI who opened the PPF Account while residing in India can continue their PPF account however, the new PPF Account for NRIs will not be allowed
Maturity Period
- The maturity period of the PPF Account is 15 years of age and thereafter you can extend the account
Withdrawal
- You can withdraw the PPF Account after the 5 years of completion of the account with a 50% total credit in the accounts
FAQ
The duration of the PPF Account is 15 years and you can extend the PPF Account in blocks of 5 years.
Yes, you can get the tax benefit up to Rs.1,50,000/- per annum under the Income Tax Act.
Yes, you can avail loan against the PPF Account with a repayment period of 36 months and an interest rate of 2%. If you did not pay the loan amount within the given period then you’ll have to bear an interest rate of 6%.
The minimum investment amount using which you can open a PPF Account is Rs.500/- and you can invest at a max of Rs.1,50,000/- per annum. Anything above the maximum allowed limit will not earn any interest rate.
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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