Bank of India PPF account
The Bank of India (BOI) Public Provident Fund (PPF) account is your answer to mobilize your savings into an interest-generating account that also helps you save on income tax. All deposits made into this account will be tax-deductible under Section 80C of the Income Tax Act, 1961 and all interest generated in this account is also totally tax free. There are 4,032 branches of the Bank of India where a PPF account may be opened.
How to open a Bank of India PPF account?
Opening a PPF account in the Bank of India is really easy, and can be done by following these easy steps:
- Obtain the account opening form (PPF Form A).
- Obtain the Pay-In Slip (PPF Form B).
- Obtain the Nomination Form (PPF Form E). All these forms are available on the Bank of India website, and from any of the 4,032 official branches.
- Fill in PPF Form A, PPF Form B and PPF Form E with all necessary details.
- Submit the forms, along with all documents required to the bank.
- Once the application is received, reviewed and approved, your BOI PPF account will be ready to use.
While there is no online procedure to open a PPF account with Bank of India, you can view, operate and manage your account online after it is created.
Documents required to open PPF account in Bank of India
To open a PPF account in BOI, you will need to submit copies of the following documents:
- Account opening form – Form A.
- Pay-In slip – Form B.
- Nomination form – Form E.
- Identity proof – this will have to be a valid ID proof with an attached picture. A copy of this will have to be submitted, with the original to verify. Could be a driver’s license, PAN card, passport, etc.
- Address proof – a copy of the address proof must be submitted with an original to verify the same. Could be your telephone bill, utilities bill, ownership papers, etc.
- Passport sized photographs – Two recent passport sized photographs are required.
Bank of India PPF account opening form
The BOI PPF account opening form (Form A) can be obtained from any of the bank branches, or online through their website. The form requires you to fill in certain details, as mentioned below:
- Name of the applicant.
- Name of the guardian (in case of minors).
- Permanent address and communication address.
- Bank of India savings bank account number.
- PAN card details.
- Retail Infinity ID (if any).
- Initial contribution.
- Debit mandate.
- Debit account number.
- Standing instructions. And in the case of minors:
- Date of birth of minor.
- Applicant’s relationship with minor.
- Declaration that no other PPF account is being held, other than on behalf of minors or a Hindu Undivided Family (HUF) or an association of persons.
- Details of PPF accounts being held in the above cases.
Bank of India PPF Rules and Guidelines
- Eligibility: The PPF account from BOI is available only to resident Indians who are over the age of 18. Minors can also have these accounts opened on their behalf by a guardian.
- Number of Accounts: Individuals are only allowed to open one account per person. Multiple accounts are not allowed, but one person can manage the accounts of a minor, Hindu Undivided Family and association of persons under in addition to his/her own account.
- Duration: A lock-in period of 15 years is applicable, and all accumulated funds in the account can be withdrawn upon maturity. Extensions are allowed in chunks of 5 years at a time. Accounts can be kept open after maturity for any period without making deposits, the balance will continue to earn interest.
- Premature closure: PPF accounts cannot be prematurely closed or surrendered, except if the account holder, legal heir and nominee (if any) have all died.
- Joint account is not allowed.
- Deposits: The minimum deposit is Rs.500 and the maximum deposit is Rs.1,50,000, every financial year. Deposits can be made in a lump sum, or in (a maximum of 12) instalments a year.
Features and Benefits of a PPF account from Bank of India
- Loans: You can avail a loan against your PPF deposit account from the 4th to 6th year of its operation. Loans can be availed up to 25% of the total amount at the end of the 2nd last financial year. For example, if your account has been active since FY 2010-2011 – you will be able to take a loan only from FY 2013-2014, and the maximum amount will be 25% of the balance as of the end of FY 2010-2011.
- Premature withdrawals: Amounts from the account can be withdrawn prematurely, from the end of the fourth financial year from when the account was created. The maximum amount that can be withdrawn at this stage is 50% of the balance at the end of the previous year, or at the end of the 4th year, whichever is lower.
- Tax benefits: Funds in the account and interest earned thereon qualify for tax deductions under Section 80C of the Income Tax Act, 1961. Deposits are also exempt from Wealth Tax.
- Account deactivation and reactivation: If an account has no deposits for a considerable period of time, it will be deactivated but not closed. It can be reactivated with a minimum payment of Rs.500 and a penalty of Rs.50 for each defaulted year.
Bank of India PPF interest rate
The interest on PPF accounts from Bank of India is set by the Government of India’s Ministry of Finance. Currently, the PPF interest rate is 8.7% and is compounded annually. This rate is as of FY 2014-2015.
With regard to making deposits, it is advised to do so at any time between the 1st and 5th of every month, as interest is calculated on the balance in the account between the 5th and last day of the month.
Bank of India PPF calculator
If you want to figure out the balance in your PPF account at maturity, you can use a PPF calculator. A PPF calculator takes into account the following information to calculate your maturity value:
- Rate of deposits - monthly/quarterly/half-yearly/annually.
- Amount being deposited.
- PPF account tenure.
- Interest rate (currently at 8.7%).
How to deposit money in your Bank of India PPF account?
Online: If you have Net Banking active, you can deposit, manage and view your account online.
Offline: You will need to fill out and submit Form B, which is a deposit slip. Once you get this form, fill up the following details:
- Branch name.
- Name of subscriber.
- PPF A/c number.
- Amount of deposit.
- Denominations of currency or cheque/DD number and date.
- Bank/branch on which drawn.
- Depositor’s signature.
Once you’ve furnished all these details, submit them at the bank branch with the money.
How to transfer your PPF account from the post office to Bank of India?
If you have an existing PPF account at the post office and wish to transfer it to the Bank of India – that’s possible by filling out a form and paying a small fee. You’ll need a written application for the transfer and a duly filled out transfer form and submit both of these to the post office to initiate the transfer. Once the post office receives and processes these documents, the bank is notified and a cheque with your entire balance is sent to the bank and the account at the post office is closed.
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