How to Open a PPF Account in the Indian Overseas Bank?

PPF or Public Provident Funds is a Government of India-backed account that you can use to invest your funds for the long term.

It can be a great retirement saving as the interest rate offered on this scheme is one of the highest of any other savings instrument.

PPF Accounts can be opened in various banks and post offices throughout India both online and offline (some banks).

Indian Overseas Bank is one of the banks where you can open the PPF Account. It is a Government of India bank which is among the prominent banks.

In this article, we will discuss how to open a PPF account in the Indian Overseas Bank, Documents Required, features, etc.

How to Open a PPF Account in the Indian Overseas Bank

Features of PPF Account

PPF account offers some of the best features that you can get out of any investment tool, which is as follows-

  • The investment period is of 15 years and thereafter you can extend it in blocks of 15 years at the age of 60 when you retire, you will get your funds back
  • The maturity amount and interest earned are not taxable
  • You can avail a loan against your PPF Account up to 35% of the investment amount
  • The minimum deposit amount is Rs.500/- and the maximum amount is Rs.1.15 Lakhs per month

PPF Account Interest Rate 2019-2022

The interest rate offered by the PPF Account is as follows

PeriodInterest Rate (p.a.)
1 July 2021- 30 September 20217.10%
1 April, 2021 – July 20217.10%
1 January, 2021 – 31 March, 20217.10%
1 October, 2020 – 31 December, 20207.10%
1 July, 2020 – 30 September, 20207.10%
1 April, 2020 – 30 June, 20207.10%
1 January, 2020 – 31 March, 20207.90%
1 October, 2019 – 31 December, 20197.90%
1 July, 2019 – 30 September, 20197.90%
1 April, 2019 – 30 June, 20198.00%
1 January 2019 – 31 March 20198.00%

How to Open a PPF Account in the Indian Overseas Bank?

Follow these steps to open a PPF account in your Indian Overseas Bank

  • Visit the Indian Overseas bank branch and ask the bank officials for a PPF Account opening form
  • Now, fill out the form with correct details like name, address, education qualification, PAN Card, etc.
  • After filling the form, submit the form along with the documents mentioned below followed by the initial deposit amount
  • Now, the bank official will forward your application to the relevant department a process your application
  • After successful processing, your PPF account will be created and the details of your PPF Account will be provided to your vis SMS

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

What will happen to the PPF Account after the account attains maturity?

After PPF Account Maturity, the account holder has three options – Withdraw the funds, extend without investment, or extend the account with an investment option.

Is the PPF Account backed by the Government of India?

Yes, PPF Account is a Government of India-backed account, the central government takes full responsibility for this account. Not even a court can attach the PPF Account amount in any financial recovery matter.  

Is the PPF Account a market-linked account?

No, PPF Account is not market linked account. National Pension Scheme is a market-linked account, the interest rate offered in PPF Account is provided at a fixed rate decided by the Government every year.

How many times can a PPF Account holder deposit funds in a financial year?

Depositing in the PPF Account is strictly allowed 12 times a year anything more than that will not be accepted. Also, no more than 2 deposits within a month will be allowed.

What is the minimum lock-in period of the PPF Account?

The lock-in period of the PPF Account is 6 years and you can withdraw the funds after 2 years of that i.e. on the 8th year of opening the account, you can close your PPF Account.

What will happen to the PPF Account after the death of the account holder?

In case of death of the account holder, the nominee of the account declared by the account holder will receive the funds immediately and the account will lapse.