Public Provident Funds are a great investment tool that you can use to save some part of your monthly income and invest in the long term for gains.
The most attractive part of a PPF account is the interest rates offered for the investment you make moreover the compounding effect of your investment is also very impressive.
You can open the PPF Account in various banks and post offices, including the Bank of Maharashtra which is one of the best Government banks in India.
In this article, we will discuss in detail how to open a PPF account in the Bank of Maharashtra. But first, let’s find out the different features of a PPF Account that makes it an attractive option for investors to invest in.
Features of PPF Account
The following are the features of a PPF Account-
- The minimum tenure for investing in a PPF account is 15 years and the account holder has an option to extend the tenure in a block of 5 years
- The maturity amount is exempted from any tax
- The account holder also can claim an Income Tax deduction for investment every year while filing Income Tax returns up to Rs.1.5 lakh
- The account holder can also avail loan of up to 25% of the investment made
- Guaranteed returns on investment backed by the Government of India
- The minimum deposit amount of a PPF Account is Rs.500/- and the maximum amount is Rs.1.5 lakhs
PPF Account Interest Rate 2015-2022
The following are the interest rate offered by Government to the investors-
|Period||Interest Rate (p.a.)|
|1 July 2021- 30 September 2021||7.10%|
|1 April, 2021 – July 2021||7.10%|
|1 January, 2021 – 31 March, 2021||7.10%|
|1 October, 2020 – 31 December, 2020||7.10%|
|1 July, 2020 – 30 September, 2020||7.10%|
|1 April, 2020 – 30 June, 2020||7.10%|
|1 January, 2020 – 31 March, 2020||7.90%|
|1 October, 2019 – 31 December, 2019||7.90%|
|1 July, 2019 – 30 September, 2019||7.90%|
|1 April, 2019 – 30 June, 2019||8.00%|
|1 January 2019 – 31 March 2019||8.00%|
How to Open a PPF Account in the Bank of Maharashtra?
You can follow these steps to open a Public Provident Fund Account in the Bank of Maharashtra-
- Visit the Bank of Maharashtra bank premises and ask the bank representative for the PPF Account opening form
- Now, fill out the form with correct details like name, address, education qualification, PAN Card number, etc.
- After filling the form, deposit the form initial deposit funds along with the documents mentioned below and show the original documents as well for verification
- After verification, the bank representative will forward your PPF account opening request
- After the opening of the account, you’ll be notified about the PPF Account via SMS
- After receiving the SMS, you can contact the bank branch and further receive your PPF Account number and other details
Documents Required for Opening PPF Account in Bank of Maharashtra
The following are the documents required for opening a PPF Account in the Bank of Maharashtra-
- Duly filled and signed account opening form
- Copy of government-approved ID card along with the original for verification like PAN card, Voter ID card, Aadhar card, Driving License or Ration card
- Copy of address proof along with the original for verification like passport, ration card, gas receipt, bank statement, or any utility bill (electricity/water)
- Passport size photographs
After the PPF Account has attained maturity, PPF Account holders have three options i.e.- Withdrawal funds, extend without investment, or extend with an investment option. You can choose any of the options.
An account holder can deposit funds at least 12 times within a financial year and no more than two deposits will be allowed within a month.
The minimum lock-in period of a PPF Account is 6 years and the account holder can withdraw his/her money after 8 years of completion of the account.
After the death of the account holder, the account will immediately lapse and the accumulated money in the PPF account will be returned to the account holder’s declared nominee.