6 Mins

Public Provident Fund (PPF) is an initiative of the Government of India to mobilize small savings. It offers tax benefits as well upon investment. One can invest in a PPF scheme at any post office or authorized banks. BOB is one such bank where one can open a public provident fund account. The Bank of Baroda PPF account interest rate is 7.1%, compounded annually. The government announces the PPF interest rates every quarter. This article covers Bank of Baroda PPF account, its features and interest rates in detail.

Bank of Baroda PPF Interest Rates

Time PeriodBOB PPF Interest Rate (per annum)
Q4 FY 2020-217.1%
Q3 FY 2020-217.1%
Q2 FY 2020-217.1%
Q1 FY 2020-217.1%
Q4 FY 2019-207.9%
Q3 FY 2019-207.9%
Q2 FY 2019-207.9%
Q1 FY 2019-208.0%
Q4 FY 2018-198.0%
Q3 FY 2018-198.0%
Q2 FY 2018-197.6%
Q1 FY 2018-197.6%
Q4 FY 2017-187.6%
Q3 FY 2017-187.8%
Q2 FY 2017-187.8%
Q1 FY 2017-187.9%
Note: The BOB PPF account interest rate is decided by Ministry of Finance every quarter

How to open PPF account in Bank of Baroda?

Opening a PPF account with BOB can be done either through offline or online mode.

For offline investing, one has to visit the nearest Bank of Baroda branch. Submit the filled PPF account opening form (PPF Form A) along with all the necessary documents like Aadhaar Card, PAN Card, and Photographs.

The following steps show how to open PPF account online in Bank of Baroda.

Opening the BOB PPF account online is simple, and one has to follow the below steps:

  • Go to the bank website and login to the internet banking facility to open Bank of Baroda PPF online.
  • Through the internet banking facility, the account holder can easily start their PPF investments.
  • However, they have to fill the account opening form, upload photographs and other KYC documents.

Bank of Baroda PPF account opening form requires the following details of the investor:

  • Name
  • Address
  • PAN Card Number
  • Initial Contribution amount (minimum of INR 500)
  • Nominee details
  • Passport size photograph
  • Identify proof and Address proof.
  • Also, if an account is opened in the name of a minor, then the minor’s birth certificate has to be submitted.

Eligibility to open a PPF in Bank of Baroda

Following is the eligibility criteria to invest in a PPF with Bank of Baroda:

  • Resident individuals can open a public provident fund account at Bank of Baroda and open Minor PPF accounts on behalf of their minor child.
  • Individuals cannot open a public provident fund account jointly. Moreover, only one PPF account is allowed per person.
  • NRIs cannot invest in PPF. However, suppose an existing PPF subscriber gets an NRI status within the 15 years of the account tenure. In that case, they can continue operating the account till maturity on non-repatriation basis.

Documents Required to open a PPF account in Bank of Baroda

Following are the documents required to invest in PPF with BOB:

  • Bank of Baroda PPF account form which is duly filled and signed
  • KYC form – duly filled and signed
  • Passport size photographs
  • Proof of identity – PAN Card, Passport, Aadhar Card, Driving License, Voter ID, etc.

Bank of Baroda PPF Account Rules

Opening

One can open a Bank of Baroda public provident fund account either through online mode or offline mode. To invest in Bank of Baroda PPF one has to be eligible. Following is the eligibility criteria.

Resident individuals above 18 years old

Parents or guardians on behalf of minors and people with unsound mind

HUFs and NRIs cannot invest in PPF with Bank of Baroda.

Closing

Premature closure of PPF account in Bank of Baroda is allowed only on the death of the investor. However, investors can partially withdraw their PPF investment or even take a loan against it.

Deposit

The minimum deposit in BOB PPF scheme is INR 500. And the maximum amount of investment in BOB PPF is Rs 1,50,000 in a financial year. One can either invest the amount in lump sum or instalments.

Transfer

The PPF account in Bank of Baroda is transferable from one branch to another. Moreover, it is transferable from the bank to the post office and vice versa.

Withdraw

One can fully withdraw their investment in Bank of Baroda PPF at the time of maturity. However, Bank of Baroda allows partial withdrawals six years from the account opening (from 7th year).

Features and Benefits of a PPF Account

Following are the features and benefits of BOB PPF account:

Tenure

The tenure of a PPF is 15 years. Furthermore, the subscriber can extend their investment duration by a block of five years. Also, the extension does not require any additional investments by the investor.

Eligibility

All Indian citizens are eligible to invest in PPF. However, NRIs and HUFs cannot invest in PPF. Also, a parent or guardian can open a public provident fund account in the name of a minor by submitting the birth certificate.

Number of Accounts and Mode of Deposit

An individual can open only one PPF account and cannot hold the account jointly. However, one can open an account on behalf of a minor. One can use any of the following modes of deposits to invest in a PPF account: cash, cheque, demand draft, or online.

Minimum and maximum investment amount

The minimum investment amount for a PPF scheme is INR 100. Also, the minimum investment per annum is INR 500. On the other hand, the maximum investment in a PPF account per annum is INR 1,50,000. Furthermore, for all investments above INR 1,50,000 per annum, investors do not earn any interest.

Deposit frequency

The deposit frequency can be either one time in a year or a maximum of 12 instalments. Also, it is compulsory to make at least one deposit every year for the scheme’s entire duration to keep the account active.

Risk

The Government of India backs PPF. Therefore, it is one of the safest investment schemes available. The scheme offers guaranteed and risk-free returns. Furthermore, it also offers capital protection. Hence the risk factor is almost nil for the investments.

Nomination

Investors can nominate a nominee for their investments. One can do it either during the account opening or subsequently.

Loan

Investors can avail a loan against their PPF account in BOB. However, one can apply for the loan only between the third and the fifth year of the account tenure. Furthermore, the loan amount cannot be more than 25% of the investments made till the end of the second financial year.

Additionally, PPF subscribers can avail a second loan after the sixth financial year. However, to get the second loan, the first loan should be paid off completely.

Taxation

PPF investments fall under the Exempt – Exempt – Exempt (EEE) category. In other words, the investment amount, interest earned and redemptions are tax exempted. Under Section 80C of the Income Tax Act, 1961, investments up to Rs 1,50,000 in a year qualify for tax benefits.