Dena Bank PPF Account is suitable for investors who look for low risk, guaranteed returns on a long term investment coupled with tax exemption benefits. Apart from savings and current accounts, Dena Bank offers customers PPF accounts as well which assure good returns.
About Dena Bank
Founded on 26th May, 1938 as Devkaran Nanjee Banking Company Ltd, which eventually became a Public Ltd company in December 1939, Dena Bank was nationalized in July 1969. Dena Bank is recognised for its endeavour towards technological upgradation and a customer rating system for its services among others. Dena Bank offers a wide range of services from core banking solutions and demat services to utility payments and treasury operations. PPF or Public Provident Fund Scheme provides support to millions of Indians. PPF scheme provides tax exemptions on interest, investment and maturity proceeds.
How to open Dena Bank Public Provident Fund (PPF) Account
While there is no particular age which is considered ideal for opening a Dena Bank PPF Account, experts suggest that one can open a PPF account provided one is certain about earning Rs. 1 lakh every year. Under the Public Provident Fund Scheme, a statutory scheme of Government of India, customers have to maintain the account for a period of 15 years. Dena Bank PPF account cannot be opened in any bank branch except the designated bank branches.
Dena Bank has designated around 85 bank branches to hold the PPF accounts across several cities such as Chennai, Panaji, Surat, Vadodara, Rajkot, Gandhinagar, Mumbai, Mehsana, Raipur, Bhuj, Bhopal, Bhavnagar, Ahmedabad, Jamnagar, Nasik and Thane among others.
Documents required to open Dena Bank Public Provident Fund (PPF) Account
Customers who wish to open a Dena Bank PPF Account need to have various documents for the purpose of verification and proof. The required documents may include the following:
- Pan card/Aadhar Card
- Driving license
- Recent photographs
- Ration card,
- Voter’s identity card
Customers should carry original documents to the bank for verification. Documents requested by the Dena Bank should be self-attested. After a PPF Account is opened at Dena Bank, a PPF Account passbook is issued to customers. Transactions made by customers are updated in the PPF passbook. The PPF Account passbook should be produced to claim tax deductions under section 80C of the IT Act.
Dena Bank Public Provident Fund (PPF) Account opening form
PPF account opening form is available at the designated bank branches of Dena Bank. Interested can approach Dena Bank to acquire the PPF form. However Dena Bank offers extensive online facilities for PPF Accounts from opening to variation in nomination facility among others for the benefit of customers.
A PPF account with the Dena Bank can be opened by any individual or even a minor (via the guardian). However, PPF accounts cannot be operated as joint accounts. Customers contributing to GPF Fund can open a PPF account. However, a customer holding a power of attorney cannot open and operate a PPF account. Also, grandparents cannot open PPF accounts on behalf of their grandchildren.
Dena Bank has different forms for various purposes from opening to withdrawal of accounts as listed in the table below:
|Form A||Opening PPF Account|
|Form B||Pay in Slip|
|Form C||Withdrawal (date of initial subscription, date on which last withdrawal was allowed and amount available for withdrawal in accordance with para 9(1)/9(3)|
|Form D||Loan from PPF account (has to be repaid with interest within thirty six months as per para 11 of the Public Provident Fund Scheme, 1968).|
|Form F||Cancellation/ change of nomination in PPF account|
|Form G||Withdrawal by legal heirs on death of account holder (Succession certificate/letters of administration with attested copy of probated will of the deceased issued by High Court, passbook of the subscriber, letter of indemnity, affidavit and Letter of disclaimer)|
|Form H||Extension of PPF account after 15 years|
Dena Bank Public Provident Fund (PPF) Account rules and guidelines
- Customers can open a PPF account at Dena Bank with a paltry sum of Rs. 100. PPF accounts can be opened by salaried or self-employed individuals. Several nationalised banks including the Dena Bank offer PPF Account services. And so does the general post office.
- A minimum deposit of Rs. 500 should be made by customers during a financial year for PPF accounts. If customers do not deposit the minimum amount, their account will be discontinued. In such a scenario, the account would however, continue to accrue interest. Customers can make their accounts active by shelling out Rs.50 as fees for each defaulted year in addition to subscription arrears.
- Customers can deposit up to Rs. 70,000 in a financial year. Customers can either deposit a lumpsum amount or opt for flexible installments. Customers can change the deposit amount and installments according to their requirements. However, the number of instalments in a financial year should not exceed 12 subject to a total of Rs.1,50,000.
- PPF accounts cannot be joint accounts. After the demise of the account holder, nominees cannot maintain the account by making contributions. Nomination facility available. In the absence of nominees, the legal heirs receive the account deposit.
- Customers can open a PPF account for their children. However, on the death of the account holder, children cannot keep the account by making contributions.
- As per the Public Provident Fund Scheme 1968, customers can make the first withdrawal from the 7th year of the opening of the PPF account (subject to a ceiling of 50%) following which, customers can withdraw every year.
- Customers can retain the PPF account even after maturity without making additional deposits. What’s more, the balance amount will earn interest at normal rate until PPF account is closed for keeps. Customers can even make one withdrawal in a financial year in such cases.
- The PPF Accounts can be opened either in Post Office or nationalised banks. PPF accounts are transferable from one post office to another. The accounts can also be transferred from Post office to banks and vice-versa.
- Premature closure of PPF Account is not allowed except in the event of death of the account holder.
Features and benefits of Dena Bank Public Provident Fund (PPF) Account
- Tax benefits: Deposits in PPF accounts are tax exempt under section 80C of the Income Tax Act. The maturity proceeds including the interest earned on the deposit are tax exempt. PPF Accounts are exempt from wealth tax as well.
- Loan benefits: Customers can avail of loans against PPF Accounts subject to specific terms and conditions. Customers can only avail of loans from third year of the opening of their PPF Account up until the sixth year. Customers would be given loans for up to 25% of the balance at the end of second year. Rate of interest would be 2% over the interest rate for PPF Accounts. What’s more, customers can avail of a second loan if the first is repaid. However, customers cannot avail of loans with inactive accounts.
- Account extension: PPF account holders can extend their PPF accounts after 15 years with or without further subscription for up to 5 years. The balance will earn interest until the account is closed. One withdrawal is allowed in a financial year. If customers keep the account after 15 years, withdrawal up to 60 per cent of the balance amount is allowed.
- Court Matters: Balance amount in PPF Accounts is not subject to attachment under any decree or order court vis-a-vis any debt.
Interest rate on Dena Bank Public Provident Fund (PPF)
Interest rate on PPF Accounts is not charged on a contractual basis in that it is notified by the Ministry of Finance, Government of India in the official gazette at the end of each year. Currently, the PPF interest rate stands at 8.7% p.a. The interest rate in Dena PPF account is calculated on the lowest balance between the fifth and the last day of the month. According to experts, customers can, therefore, earn maximum earnings by making their deposits between the first and the fifth of the month. Interest on Dena Bank PPF Accounts is compounded annually. The interest on PPF Account is credited on the 31 March every year.
Dena Bank Public Provident Fund (PPF) Calculator
Calculation of PPF interest is based on the interest rate applicable for a financial year. The applicable rate of interest for 2015-16 is 8.7% p. a which is compounded annually. The annual limit for PPF Account this year is Rs. 1,50,000. The maximum amount in 15 years would be around Rs. 22,50,000. Consequently, the final amount would therefore be Rs. 46,75,910. Interest on PPF accounts is calculated on a monthly basis. According to experts, customers should rather invest large amounts in PPF accounts in the first few months of the beginning of the financial year.
How to deposit money in Dena Bank Public Provident Fund (PPF) Account
Opening PPF Accounts with Dena Bank is more convenient compared to opening accounts in Post Offices. Customers can get the required forms from the designated branches of Dena Bank, following which, they can deposit their money into their PPF Accounts. PPF Accounts with banks are more advisable owing to the facility of online funds transfer from savings account to PPF account. One must make sure that the payee name is the same name as mentioned in PPF Account passbooks.
How to transfer your PPF account from post office to Dena Bank
Customers should visit the Post Office where they opened the PPF Account and make a written request to the PostMaster (or any concerned authority) to transfer the PPF Account to Dena Bank. Customers should acquire the PPF Transfer Application, fill it out and submit it to the PostMaster. In about 10 days, the PostMaster will issue a cheque or DD for Dena Bank (the existing account number will be merged with Dena Bank PPF Account). Interest earned till the last financial year will be added to the account.
Customers have to submit the cheque or DD given by the PostMaster to Dena bank along with the PAN number, address proof, identity proof and passbook. In a couple of days, PPF Account will be transferred to Dena Bank. While making the transfer, customers have to ensure addition of full interest after completion of the financial year and updation of PPF passbook. Experts suggest customers should submit PAN card, address proof and nomination forms to Dena Bank to facilitate faster transfer process. In most cases, transferring PPF Account from Post Office to Dena Bank may typically take about ten working days.
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