Bank Of India PPF Account Interest Rates 2024

On 7^th September 1906, the Bank of India was established under private ownership. Headquartered in Mumbai, the bank now serves as a leading public sector bank in India with over 5,100 operative branches all across the country. 
BOI aims to offer proactive and user-friendly banking services and facilities to varied industries globally. Due to its attractive ROI, most people opt for a Bank of India PPF account as an investment option. Read along to know more about it.

What Is the Bank of India PPF Account?

BOI PPF account is an investment scheme, providing tax benefits under Section 80C for the invested money. The amount of interest earned from this scheme is exempt from taxation. Additionally, it does not imply any tax deduction on the amount you will get after the maturity period. Thus, most people opt for a BOI PPF account to accumulate a substantial corpus.

Key Features of the Bank of India Public Provident Fund Account

Here are the salient features of the Bank of India Public Provident Fund (PPF) account. 

1. You will get 7.10% ROI per year on the BOI PPF account.
2. You can deposit up to ₹500 (minimum) and ₹1,50,000 (maximum) in a year.
3. At the end of each financial year, the ROI will be credited to your PPF account.
4. BOI PPF scheme comes under the EEE (Exempt-Exempt-Exempt) category.
5. The bank allows you to opt for premature withdrawals from the end of the 5th financial year.
6. BOI PPF account comes with a loan against an investment facility. 
7. Bank of India allows their customers to extend their account after the maturity period. Additionally, there’s no need for any additional deposits.
8. Your BOI PPF account will be completely transferable from one branch to another or from BOI bank to another.
9. PPF (Public Provident Fund) deposits cannot be attached by any court.

Bank of India PPF Interest Rate 2024 [Updated]

The applicable interest rate on Bank of India PPF accounts is determined by the Indian Ministry of Finance. As per the Indian Laws, the PPF interest is compounded once a year. To gain the high-yielding interest benefits, it is generally advisable for all account holders to make their deposits between the first and fifth of every month.

How to Open a PPF Account in Bank of India Online?

Bank of India does not offer any online PPF account opening facility to their customers. However, you can access your existing BOI PPF account through their net banking portal.

How to Open a PPF Account in Bank of India Offline?

Here is a step-by-step guide on how to open a Bank of India PPF account offline. 

• Step 1: Go to the nearest BOI branch.
• Step 2: Collect the PPF account opening form (PPF Form A), Pay-In-Slip (PPF Form B) and  Nomination form (PPF Form E).
• Step 3: Carefully fill up all these forms with all the necessary information.
• Step 4: Submit all the supporting documents to the BOI bank.

Documents Required to Open a PPF Account in the Bank of India

Here are the necessary documents you should keep handy while opening a Bank of India PPF account:

1. Identity and Address Proof: 

1. Letter issued by the National Population Register (containing details of your address)
2. Aadhaar Card
3. Passport
4. Voter’s ID Card
5. Driving Licence

2. Other Documents

1.  Recent passport-size photograph
2. PAN Card
3. Proof of Age (In case of account in the name of a minor)
4. Certificate of Superintendent of Mental Hospital (In case an account is opened in the name of an unsound individual)

Eligibility to Open a PPF Account in the Bank of India

In case you are looking for the eligibility criteria set by the BOI bank for PPF account opening, keep reading the following section. 

1. An Indian resident
2. Parents can open a PPF account in the name of a minor.
3. NRIs (Non-Indian Residents) and HUFs (Hindu Undivided Families) are not allowed to open a Bank of India PPF account.

Bank of India PPF Withdrawal Rules

Bank of India allows its customers to withdraw their PPF investment after the maturity period. However, with some restrictions implied, you can appeal for premature withdrawals (before your maturity period ends). Go through the below-mentioned pointers to learn about the BOI PPF withdrawal rules:

1. You can opt for partial withdrawals before maturity after completing 7 years of the total maturity period.
2. You cannot withdraw more than 50% of the balance available in your PPF account at the end of the fourth year.
3. The bank will accept premature withdrawals only if the investment is required to meet the following expenses: 
4. Medical expenses incurred due to any of your family members (children, mother, father or spouse) battling a life-threatening disease 
5. Education expenses of yours or a minor of your family.

Bank of India PPF Formula and Calculation

You can easily calculate the returns earned from your BOI PPF account by using the below-mentioned standard calculation formula:

F= P[({(1+i)^n}-1)/i]*(1+i)

As per the formula,

• P = principal amount
• i = expected rate of interest
• F = maturity amount
• n = duration of the investment 

Let us understand this formula in a better way with the help of an example. 

Suppose you want to invest ₹1.2 lakhs in the BOI PPF scheme, offering 7.1% interest for 15 years. By putting these values into the formula, you can easily calculate the maturity amount of your PPF investment. 

F = P[((1+i)n-1)/i] = 1,20,000[({(1+0.071)^15)-1}/0.071]*(1+0.071) = ₹32,54,569.

How to Use a Bank of India PPF Calculator?

Doing the PPF calculation manually increases the chances of mistakes. Henceforth, there are BOI PPF calculators which automatically do the calculation for you and provide accurate results. All you need to do is provide your annual investment amount or use the slider to input the amount and enter the total period of your investment. That’s it! The total investment amount, maturity value and total rate of interest will automatically be displayed on the screen.

Steps to Access Bank of India PPF Passbook Online 

You can access your Bank of India passbook via their mobile banking application. Before starting the below-stated steps, download and enable your mobile banking online.

• Step 1: Open the Bank of India mobile banking application.
• Step 2: Navigate to the ‘mPassbook’ option and click on it. 
• Step 3: You have to enter your Bank of India PPF account number.

As a result, you will be able to view transaction history and other details by accessing their passbook online.

Extension of Bank of India PPF Account 

The total tenure of a BOI PPF account is of 15 years but you can surely extend it.

1. You can also extend this period for one or more blocks of five years (multiple times). Remember, you must opt for this option within one year from the maturity date.
2. You have to download the ‘Form H’ from the official site of BOI.  You can also visit your nearest Bank of India branch to collect the form.

Things to Note While Opening Bank of India PPF Account

If you are planning to open a BOI PPF account online or offline, consider all the following pointers before doing so.

1. You must be an Indian resident.
2. In case you are a minor (below 18 years), your parents will have to open a BOI PPF account on your behalf.
3. Bank of India does not allow multiple PPF account openings.
4. You can open a PPF account with a lock-in period of 15 years. However, you can extend it in a block of five years.
5. BOI does allow the premature closing of a PPF account only if the account holder dies.
6. You cannot open a joint PPF account in the Bank of India.

How to Transfer a Bank of India PPF Account?

Bank of India allows their PPF account holders to transfer their accounts from the present bank to another or post office. Following are the steps on how to transfer your BOI PPF:

• Step 1: You have to submit your PPF account transfer request to your current PPF account branch.
• Step 2: Submit your original passbook along with the request.

That’s it! After this procedure, your existing PPF account branch/bank will transfer all your original documents to the branch address provided by you. Upon successful PPF transfers, the recipient bank will provide you with the receipt of the documents. You have to fill up and submit a fresh PPF account opening form along with KYC documents.

Loan Against Bank of India PPF

You can easily avail loan against your BOI PPF account from the third to the fifth year of the deposit. You will get a loan up to 25% of the total amount you deposited at the end of the last financial year. Bank of India gives 36 months to repay the loan taken.

Final Words

Now that you have a comprehensive idea about the Bank of India PPF account and other adjoining details, you can open an account today to enjoy its higher interest rates and substantial returns. Remember, the bank allows you to open a PPF account in offline mode only. Moreover, the bank allows you to close your account or avail premature withdrawal facility.

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Disclaimer

This article is solely for educational purposes. Stable Money doesn't take any responsibility for the information or claims made in the blog.