Bank of India provides account opening for PPF accounts. Public Provident Funds or PPF Account is a retirement savings scheme backed by the Government of India.
The aim of this scheme is to provide an individual with a post-retirement monthly pension to make him/her financially stable.
This is a voluntary account that comes with many benefits like high-interest rates, loan facilities, tax benefits, etc.
In this article, we will discuss how to open a PPF account in the Bank of India? documents required, opening process, etc.
But first, let’s explore the benefits offered by PPF Account.
Benefits of PPF Account in Bank of India
The following are the benefits of PPF Account in Bank of India-
- Online access to your account using Bank of India Digital Banking means like mobile banking app, net banking, etc.
- This scheme is a long-term capital appreciations scheme providing asset appreciation until your retirement
- This scheme has a lock-in period of 15 years and thereafter you have an option to further contribute in block of 5 years
- It is a low risk, high return scheme which can be very helpful at the retirement stage
- The investment made on this account is tax exempted and you’ll also get tax benefit up to Rs.1,50,000/- in a financial year
- The minimum investment amount is Rs.500 in a financial year and maximum investment amount of Rs.1.50 Lakhs
- You have an option to avail loan against your PPF account in the 3rd and 6th financial year
- There is an option of partial withdrawal after 5th financial year of your account
- PPF Account cannot be attached by any court meaning in case of any financial recovery ordered by the court against your property then PPF Account cannot be attached under that even by the Supreme Court of India
Calculate PPF Account Returns
You can use the following steps to calculate your PPF Account returns-
- Click on the PPF Account calculator and visit the Ask Bank PPF calculator
- Now, enter the amount you want to contribute followed by selecting the frequency of deposit
- Click on the calculate button
- After clicking on the button, you’ll find the entire breakdown of your amount along with maturity in 15, 20, 25, 30 and 35 years of investment to give you a perspective on your investment
How to Open PPF Account in Bank of India?
Bank of India only offers PPF Account opening via offline means. You can follow these steps to open a PPF Account in the Bank of India-
- Visit the nearest Bank of India branch and ask the bank representative for PPF Account opening form alternatively, you can download the PPF Account opening form
- Now, fill the form with correct details, attach the documents mentioned below
- After filling the form, submit the form with documents along with the initial deposit amount
- The bank representative will review your application and intimate you about the account opening status
- After the processing of your PPF account opening request, you’ll receive the PPF account details via SMS using which you can access your PPF Account
- Also, you can use BOI Net banking, BOI Mobile banking to contribute towards your PPF Account
Documents Required for PPF Account
The following are the documents required for PPF Account-
- An Identity proof (Voter ID/PAN Card/ Aadhar Card)
- A proof of residence (Utility Bill / Electricity Bill/Aadhar Card, etc.)
- Passport size photographs
- Pay-in-slip (available at the bank branch/post office)
- Nomination form
How to Contribute to the PPF Account online?
After opening the PPF Account, you can use the Bank of India Digital banking services to make contributions to the PPF Account.
The following are the step by step processes for monthly contributions to the PPF Account-
- Visit the official net banking portal of Bank of India and login to your account using your login credential
- After logging in, navigate to the Fund transfer section and click on the IMPS fund transfer option
- Now, a small form will appear which you’ll have to fill with details like amount, account number, etc. followed by clicking on the submit button
- Now, you’ll have to preview your request followed by entering the Transaction password
- After entering the password, your account will be credited and your PPF Account will be initiated with the transferred fund
How to Create a standing instruction in BOI for automatic contribution into PPF Account?
Another best way to contribute to the PPF Account is via standing instruction, which will enable you to transfer funds into PPF Account in a regular basis.
The following are the step-by-step instruction on how to create a standing instruction using your Bank of India net banking-
- Visit the official net banking portal of Bank of India and login to your account using your login credentials
- After logging in, navigate to the fund transfer section and click on the standing instruction button
- A page will appear with many options and here you’ll have to choose the PPF option followed by clicking on continue button
- Now, your account which is connected to the PPF Account will automatically gets selected and you’ll have to provide details like Amount of transaction, no of transaction and set the date of the transaction also the frequency of transaction like monthly, quarterly, etc.
- After setting up the standing instruction, click on the continue button
- After clicking on the continue button, you’ll have to provide the OTP send on your registered mobile number in the given field followed by clicking on the Submit button
- Now, you’ll have to provide the transaction password associated with your net banking account followed by clicking on the continue button
- Now, you’ll be notified about the successful standing instruction created.
- Your account will be credited in the set manner from now on until the end of the standing instruction
FAQ
The interest earned on your PPF contribution is calculated monthly but the amount to be debited into your PPF Account is initiated on yearly basis.
15 years is the minimum maturity year meaning you have an option to continue your contribution in a block of 5 years. Alternatively, you can also withdraw the entire amount incurred in your PPF Account.
The PPF Account has an Exempt-Exempt-Exempt status meaning, the entire amount, interest earned, and maturity amount is tax-free. You do not have to pay any tax on the maturity amount.
Yes, you can open a PPF Account for a minor but, a minor below 18 years of age require a parent to manage the account for them, also the minor must be a resident of India for opening the account.
The PPF Account cannot continue after the death of the account holder, therefore, after the death of the account holder, the PPF account will be closed and the remaining amount will be transferred to the nominee account.
In this case, the nominee or family member of the PPF Account will receive the funds along with the interest rate incurred until the death of the account holder. You cannot continue this account after the death of the account holder.
