Overview of Bank of Baroda PPF Account
Bank of Baroda is a bank that has been operating in India since 1908, which makes it well over 100 years old. It has always participated in government schemes that have been designed to bring more financial free to the people of the bank and that is the reason why it offers its customers the opportunity to invest in the Bank of Baroda public provident fund.
The scheme is in complete compliance with the 1968 scheme of providing PPF that offer a safe environment for investors to invest their money for a long period of time and earn an attractive interest on it. The scheme also offers other facilities like loans and easy to pay instalments so as to maximise the investment opportunity for people.
Features and benefits of the Bank of Baroda provident fund
The things that make the BOB provident fund scheme so attractive are things like high interest rates, tax benefits and attractive amounts that you can deposit. A full list of their features would include.
- The PPF can is open to all individuals and even minors.
- There is no minimum limit on how much you can deposit in a year as long as that amount is not below Rs. 500. Basically you can open this provident fund with as little as Rs. 500.
- The amounts you deposit in the PPF in a year are eligible for tax benefits under section 80C of the IT Act.
- Since the Bank of Baroda PPF account is not linked to any markets and is part of a government scheme, it is a very safe investment medium.
- The interest you earn is completely tax free.
- The account can even be opened by a minor under the guidance of a legal guardian.
- The account also comes with a nomination option which allows you to name a beneficiary for the account in the unfortunate event of your death.
- The account can also be transferred from the bank to the post office and back as and when required.
- In case you need money in a hurry, you can take a loan from the bank against the PPF you hold with them.
- You can even make partial withdrawals from the PPF account after the first 5 years are over.
- If you shift from one city to another then you can have your PPF account also shifted to the Bank of Baroda branch in that city.
How to Open a Bank of Baroda Public Provident Fund Account Online?
The account cannot be opened online but you can submit your application to open a PPF with Bank of Baroda at any of their branches which will require you to submit an application form along with certain other documents.
Documentation required to open PPF account with Bank of Baroda
The document you may have to submit to open the PPF are:
- You have to submit the completed application form is the first and foremost document required.
- You will also have to submit the nomination form if you wish to nominate a beneficiary for the PPF.
- You may have to fill up a Know Your Customer (KYC) form and submit that too.
- For the purpose of proving your identity you may have to submit an ID proof in the form of a passport, driver’s license or a PAN card.
- A few passport photographs will also be required to complete the formalities.
- In addition to these basic documents, you may also be asked to provide other documents, which the bank will tell you about.
Bank of Baroda PPF Account Opening Form
The account opening form for Bank of Baroda is a simple one and can be completed in one page itself. The form just requires you to enter your contact details and address. You will also need to indicate if you are opening the account for yourself or for a minor, whose guardian you are.
Bank of Baroda PPF Account Rules and Guidelines
While the Bank of Baroda PPF account comes with a host of features and benefits, there are some rules that you will be expected to abide by. They are:
- Being a PPF account, premature withdrawals won’t be allowed for any reason. The only time the account can be closed prematurely is when the account holder passes away.
- If the account holder has passed away the account must be closed. It cannot be continued by the nominee.
- One person can have only one PPF account at a time.
- The maximum amount that can be deposited in the account in a year is Rs. 1.5 lakhs.
- If you deposit more than Rs. 1.5 lakhs, the excess money will be returned without interest.
- While you are allowed to make partial withdrawals, the amount you withdraw cannot exceed 50% of the balance after 4 years.
- You can take a loan against the PPF but you can take a loan only once a year and only till the end of the 5th year.
- If you don’t deposit anything in your PPF account it will be considered a discontinued account but it can still not be closed.
- If you wish to restart a discontinued account, you can do so by paying a fee of Rs. 50 for every year that you didn’t make any deposits.
Bank of Baroda PPF Scheme Interest Rate
There are two interest rates that apply when it comes to the Bank of Baroda PPF.
Interest earned: This is the interest that bank will pay you on the amount held in the PPF account. The current interest being offered is 8.7% per annum.
Interest on loans: If you take a loan against the PPF then you will have to repay it with an interest of 2% more than the interest you earn. This means the total interest you will pay will be 10.7% per annum.
The interest rates offered on PPF accounts are dictated by the government hence can change if there is a change in the government’s policy regarding provident funds.
The PPF interest is calculated based on the minimum balance that is available in your account between the 5th and last days of a month. If you deposit money via cheques then the interest will be calculated from the date the cheque is realised till the end of the month.
Bank of Baroda PPF Calculator
The PPF calculator is a tool that can tell you exactly how much the maturity value of your PPF will be at the end of 15 years. This tool can be used even if you plan to deposit different amounts each year.
How to deposit money in your Bank of Baroda provident fund Account
There are two ways in which you can deposit money in these accounts. If you wish to deposit money through an online medium you will need to have an account linked to the PPF. For offline deposits, you can deposit the money via cheques which you can drop into your PPF at any of the bank’s branches.
How to transfer your PPF Account from Post Office to Bank of Baroda
You can, at any time, transfer your BOB provident fund account to a post office or transfer your PPF from the post office. To transfer the PPF from the post office to Bank of Baroda, you will have to request the post office to transfer your account. You will then have to provide BOB with the details of your account so that they can verify and transfer the account to their bank.
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