Canara Bank PPF Interest Rates 2024 – Calculate Online

Canara Bank offers different savings options to citizens, including a Public Provident Fund (PPF). It is a scheme backed by the government to help people save for retirement and is available through Canara Bank. Many people still prefer Canara Bank’s PPF because of the various benefits it offers. In this guide, you will learn in detail about the Canara Bank PPF and other crucial details associated with it. 

What Is a Canara Bank PPF Account?

A Canara Bank PPF is a long-term savings investment scheme, ideal for risk-averse individuals. With this scheme, investors can also enjoy tax-saving benefits under Section 80C of the Income Tax Act. Since the PPF of Canara Bank is backed by the Government of India, it ensures a secured and guaranteed return on the maturity amount. The invested principal amount is qualified for tax deductions of up to ₹1.5 lakhs per financial year.

Key Features of Canara Bank Public Provident Fund Account

Besides the high-yielding Canara Bank PPF interest rate, here are some other main features of this account.

1. A minimum deposit of ₹500 is required to open a Canara Bank PPF account.
2. You can deposit any amount between ₹500 to ₹1.5 lakhs in a financial year.
3. Deposits can be made at once or in multiple instalments.
4. You can extend your account for 1 or more 5-year periods, by requesting it within 1 year of maturity.
5. A nomination facility is available, allowing you to nominate up to a maximum of four individuals before maturity.
6. You can transfer your PPF account as per the scheme guidelines.
7. Withdrawal and loan facilities are available based on the bank’s scheme guidelines.

Canara Bank PPF Interest Rates

The Government of India sets the Canara Bank PPF account interest rates, which are subject to quarterly changes according to the decisions of the Finance Ministry.

How to Open a PPF Account in Canara Bank Online?

You can open a PPF account in the Canara Bank by filling the Form A. Here is a step-by-step guide you need to follow for Canara Bank PPF account opening online:

• Step 1: Go to the online portal of the Canara Bank.
• Step 2: Click on ‘Account Opening’ and you will be directed to the Canara PPF registration page.
• Step 3: Fill in your details like name, birth date, occupation, branch name, and other information required.
• Step 4: Enter the captcha code and submit the details.
• Step 5: Print it out by selecting ‘Print Report’. 

How to Open a PPF Account in Canara Bank Offline?

The following highlights a step-by-step procedure to open a Canara Bank PPF account offline:

• Step 1: Visit your nearest Canara Bank branch.
• Step 2: Collect the Canara Bank PPF account opening form from this branch.
• Step 3: Fill in all the essential details such as your name, address, PAN card number, account opening branch, initial contribution and nominee/minor details (if applicable). 
• Step 4: Attach a passport-size photograph with the form.
• Step 5: Submit it with the necessary documents to bank officials at the branch. 
• Step 6: Make an initial deposit by cheque or pay-in slips.

By following these steps, you will be able to open the account easily at your nearest Canara Bank branch.

Documents Required to Open a PPF Account in Canara Bank

Here are the documents required to open a Canara Bank PPF:

1. Duly filled-out application form
2. Passport
3. Driving Licence
4. PAN Card
5. Voter Identity Card issued by the Election Commission of India
6. Job card issued by NREGA, signed by a State Government officer
7. Letter from the Unique Identification Authority of India (UIDAI) containing name, address, and Aadhaar number
8. Two passport-size photographs

Eligibility to Open a PPF Account in Canara Bank

Before obtaining the Canara Bank PPF account opening form, you must learn the eligibility criteria which are as follows:

1. An applicant must be a resident of India, with an age of 18 years or older.
2. An adult can open an account on behalf of a minor or a person of unsound mind for whom they are the guardian. 
3. Non-resident Indians (NRIs) and Hindu Undivided Families (HUFs) cannot open a PPF account.

Canara Bank PPF Withdrawal Rules

Here are some important Canara Bank PPF withdrawal rules which you must remember:

1. At the time of maturity, you have the option to fully withdraw your investment from your Canara Bank PPF account.
2. Canara Bank permits partial withdrawals from the 7th year of the account opening, providing flexibility in accessing funds before maturity.

Canara Bank PPF Formula and Calculation

There are two ways of determining the potential returns one might earn from a PPF investment. One involves the use of a mathematical formula, while the other utilises an online calculator. Let’s discuss these two methods in detail, beginning with the formula. 

Canara Bank uses the following formula to calculate the total returns on PPF investments:

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

Here, 

• F = Maturity amount
• P = Principal amount
• n = Number of years of investment 
• i =  Interest rate (subject to change)

To understand the calculation of the maturity value of Canara Bank’s PPF investment, let us take an example.

Suppose you make an annual deposit of ₹30,000 for 15 years with a prevailing interest of 7.1% per annum. By putting these values into the formula, we will get the maturity amount. 

F = P [({(1+i) ^n}-1)/i] = 30,000 [({(1+7.1) ^15}-1)/7.1] = ₹8,13,642.

Over the next 15 years, your total investment without interest will amount to ₹4.5 lakhs. The maturity amount will be ₹8,13,642 and the total interest earned will be ₹3,63,642.

How to Use a Canara Bank PPF Calculator?

Canara Bank PPF calculator can be easily accessed online for free and is useful for estimating potential PPF returns. Here are the steps showcasing how it works:

• Step 1: Enter the amount you want to invest. 
• Step 2: Specify the duration of your PPF investment.

Once you have entered these details, the calculator will show the total amount accumulated by the end of the investment period.

Steps to Access Canara Bank PPF Passbook Online 

You can access your Canara Bank PPF passbook online by following the steps:

• Step 1: Log in to your Canara Bank account using your User ID and password.
• Step 2: Navigate to the ‘PPF’ section followed by the ‘Passbook’ option.
• Step 3: Click on the option to view your PPF passbook.

Steps to Check Canara Bank PPF Balance 

Here are the steps to check your Canara Bank PPF account balance:

• Step 1: Log in to your banking account using your online banking credentials.
• Step 2: Access the option to check the current balance of your Canara Bank PPF account.

Alternatively, you can update your Canara Bank PPF passbook periodically to check your PPF account balance offline.

How to Download Canara Bank PPF Account Statement?

To download your Canara Bank PPF statement, follow the steps given below:

• Step 1: Log in to the Canara Bank net banking portal using your user ID and password.
• Step 2:  Navigate to the ‘PPF Account Details/Statements’ option and click on it. 
• Step 3: Look for the ‘Download or View e-statement’ option within the PPF account section.
• Step 4: Select the desired timeframe for the statement you want to download.
• Step 5: Download the e-statement, specifying the record of all debits and credits in your Canara Bank PPF account.

Extension of Canara Bank PPF Account 

Canara Bank allows PPF account holders to extend their account tenure even after it has matured. Here are some important points to note:

1. NRIs are not eligible for PPF account extension with Canara Bank after maturity.
2. To apply for an extension, use PPF Form H within one year of the PPF account maturity date.
3. The Canara Bank PPF account continues to earn interest at the prevailing rate during the extension period.
4. You can extend the PPF account in 5-year increments, with the flexibility to choose not to make any additional deposits.

Things to Note While Opening Canara Bank PPF Account

Here are some essential points you should remember while opening a Canara Bank PPF:

1. The interest you earn on your PPF account is not subject to taxation.
2. Only one account can be opened in the name of a minor or a person of unsound mind by any guardian.
3. Joint accounts are not allowed under this scheme.
4. Members from Hindu Undivided Families are exempted from opening a PPF account in Canara Bank.

How to Transfer Canara Bank PPF Account? 

The following are the steps you need to follow to transfer your Canara Bank PPF account: 

• Step 1: Write a letter clearly stating why you want to transfer your PPF account.
• Step 2: Download the transfer form from the internet and provide the necessary details like the current branch name, address, and IFSC code.
• Step 3: Sign the application form and submit it to the current bank or post office branch where your PPF account is held.

Loan Against Canara Bank PPF

You can take a loan against Canara Bank PPF but there are certain conditions which you have to keep in mind:

1. You can take a loan from the Canara Bank PPF account after 3 years but before 6 years from when you opened the account.
2. The maximum loan you can get between the 3rd and 6th year is 25% of the PPF account balance remaining at the end of the 2nd year.
3. The interest rate on the PPF loan is 2% more than Canara Bank’s PPF account interest rate.
4. You can take multiple loans against their PPF account, adhering to Canara Bank’s regulations.

Final Word

Canara Bank PPF provides a comprehensive and user-friendly savings solution with various benefits for account holders. This bank’s PPF account offers valuable features such as the option to take a loan against your PPF and the flexibility of partial withdrawals. These features enhance wealth management, providing you with convenient tools to meet your financial needs.

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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.