Saving for your retirement is very important especially to ensure you are financially independent after retirement.
There are various tools that you can use to save funds for retirement, once such tool is PPF Account using which you can save funds.
PPF stands for Public Provident Funds which is a Government of India backed retirement savings account. The account offers an attractive interest rate and can be very useful after your retirement.
In this article, we will discuss how to open PPF Account in the Central Bank of India, Documents Required, Features of PPF account, etc.
Features of PPF Account
The following are the features of the PPF Account which might interest you to subscribe–
- The overall tenure for PPF Account is 15 years and after 15 years you can extend the PPF Account in the block of 5 years
- The maturity amount is tax free also you get a tax deduction up to 1.50 lakhs every year for the payment of the PPF account
- You have an option to get a loan up to 25% of the amount of your PPF Account
- The interest rate offered by the PPF Account is one of the highest in the market and you can start the account by investing as low as Rs.500/- and can go up to Rs.1.5 Lakhs
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% |
Note- You can Calculate your PPF Account maturity amount for monthly or yearly payments after your retirement using the PPF Account calculator
How to Open a PPF Account in the Central Bank of India?
The following are the step-by-step instructions on how to open a PPF account in the Central Bank of India-
- Visit the Central Bank of India bank branch and ask the bank representative for an account opening form
- Now, fill the form with correct details like name, address, PAN Card details, etc.
- After filling in the details, attach the documents mentioned below along with the initial payment option
- Now, submit all the documents to the bank representative and he/she will review your application form
- After review, your application will be forwarded to the relevant department within the bank
- Within 7-8 working days, your PPF Account in the Central Bank of India will be created and you would be able to use the PPF account easily
Documents Required for Opening PPF Account
The following are the documents required for opening a PPF Account in the Bank of Maharashtra–
- 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 your PPF Account maturity, you can either withdraw funds, extend the investment in the block of 5 years or simply extend it further without making any investments. After you’ve retired i.e. 60 years of age, you can withdraw the funds.
Investing in the PPF Account is easy and you can do it online however, you have to invest in the account at max 12 times a year with no more than twice a month.
The minimum time you are required to invest in the PPF Account is 6 years and in the 8th year, you can withdraw the funds from your account.
In case of death, the nominee of the account holder will be eligible for withdrawing the funds from his/her account. The death of the account holder immediately lapses the account.
