Open Indian Bank PPF Account Online 2024

Established in 1907 and headquartered in Chennai, Indian Bank is a prominent public sector bank with a customer base of over 100 million and an extensive network of 5,814 branches and 4,929 ATMs/cash deposit machines. Opting for Indian Bank to open a PPF account ensures an ideal banking experience. 

In this blog, we will walk you through a comprehensive guide on Indian Bank PPF accounts while highlighting its features and benefits. 

Before we dive into more details, let us take a quick look at the table below to explore the Indian Bank PPF interest rate and other associated details.

What is an Indian Bank PPF Account? 

Under the Public Provident Fund scheme, individuals can make contributions to their Indian PPF Account in the form of a low-risk investment. It is a safe, long-term scheme which comes with assured returns and several tax benefits. You can opt for this scheme at any branch of Indian Bank as it is operational everywhere. 

By opting for a PPF account with the Indian bank, you will get access to tax benefits under Section 80C of the Income Tax Act. The returns generated from this account are exempted from tax impositions. Moreover, it offers substantial and secure returns since the PPF investment scheme is backed and reviewed every quarter by the Government of India.

Key Features of Indian Bank Public Provident Fund Account 

Listed below are the key features of an Indian bank PPF account, which you can unlock as an associated customer of the bank. 

1. The PPF interest rate in Indian Bank is 7.10%, fully exempted from taxation.
2. Indian Bank allows long-term investment of 15 years.
3. Customers can start by depositing a minimum amount as low as ₹500 and contribute to a maximum amount of ₹1,50,000 within a financial year.
4. Starting from the 5th financial year, a partial withdrawal facility applies to PPF investment. 
5. You can extend your account by blocks of 5 years post the maturity period as per your financial requirements. 
6. Deposits in the Indian PPF account are made through a maximum of 12 transactions.
7. Customers can avail a loan between the 3rd and 6th financial year against their Indian Bank PPF deposit. 

Keep reading ahead to find out the high-yielding interest rate and how you can open up your PPF account with the Indian bank.

Indian Bank PPF Interest Rates 2024

Before we discuss how to open a PPF account with an Indian bank, let us tell you about the attractive interest rate that the bank offers. The PPF interest rate in Indian Bank is 7.10%, applicable to the investments made throughout a financial year. 

How to Open a PPF Account in Indian Bank Online? 

The Indian Bank PPF account opening online facility is not available. Instead, you can easily follow a straightforward offline method to open a PPF account. 

How to Open a PPF Account in Indian Bank Offline? 

Here is a step-by-step guide on how you can open your PPF account with Indian Bank:

• Step 1: Visit your nearest Indian Bank branch.
• Step 2: Ask the bank officials for an application form and fill it in due time.
• Step 3: Submit copies of the required self-attested documents including Aadhaar card, PAN card, photographs, etc.
• Step 4: Make the initial deposit necessary to activate the PPF account.

After your PPF account under Indian Bank is active, you will receive a passbook. It will enlist all current transactions, your account number, IFSC code and other details in association with your Indian Bank PPF account.

Documents Required to Open a PPF Account in Indian Bank 

Here is a list of documents required at the time of opening a PPF account with Indian Bank. 

1. Copy of Aadhaar card (self-attested)
2. Copy of PAN card (self-attested)
3. Copy of Voter ID (self-attested)
4. Recent passport-size photographs
5. Duly-filled account opening form

Once you have gathered all of these documents, you are ready to apply for the PPF account with the Indian bank. However, make sure you also satisfy the eligibility criteria in order to successfully open an account with this bank. 

Eligibility to Open a PPF Account in Indian Bank 

Here are the basic criteria you must meet to open a PPF Account with Indian Bank: 

1. You must be an Indian citizen.
2. An applicant should have only one PPF account under his/her name. 
3. In the case of a minor, a parent or guardian can open an Indian Bank PPF account on their behalf.

If you meet these criteria, you are now ready to open your PPF account with Indian Bank.

Indian Bank PPF Withdrawal Rules  

If you want to hold a PPF account with Indian Bank and are wondering about the withdrawal rules, it is important to note that Indian Bank allows its customers to partially withdraw money from their PPF account from the 5th financial year onwards. 

Indian Bank PPF Formula and Calculation 

The interest accumulated throughout the lock-in period is credited to the customer’s PPF account at the end of a financial year. The Indian Bank PPF interest is determined with calculations involving a pre-established, government-set rate of interest (7.10%). The following formula is used to calculate the returns on your PPF accurately: 

F = P [({(1+i) ^n}-1)/i] 

Where, 

• F- Maturity value of the PPF investment 
• P- Annual instalments made in a PPF account 
• ¡- Interest rate 
• n – Number of years

Let us understand the formula with the help of an example. Suppose you want to invest ₹1,00,000 in a PPF account with an annual interest rate of 7.1%. The formula will be applied as follows:

F = P [({(1+i) ^n}-1)/i] = 1,00,000 [({(1+7.1) ^15}-1)/7.1] = ₹27,12,139

Although the formula seems simple, manual calculations are prone to human errors. With the help of the Indian Bank PPF calculator, you can have an accurate estimate of your earned interest. You will get an idea about the maturity value of the invested amount. This will, in turn, help you decide whether or not this investment option aligns with your financial goals.

How to Use Indian Bank PPF Calculator? 

Now that you have understood the benefits and ease that come with the Indian bank PPF calculator, here is how you can use it:

• Step 1: Type in the annual investment amount or simply adjust the slider to choose that amount.
• Step 2: Select the time period throughout which you plan to invest in your PPF account. 

That’s all you have to do! After these details are provided by you, the Indian Bank PPF calculator will determine the total investment amount, interest earned and maturity value automatically. 

Extension of Indian Bank PPF Account 

Go through this section thoroughly to know the ins and outs of the Indian Bank PPF account extension process. Here are some major benefits of opting for Indian Bank to open your PPF account with, when it comes to extension: 

1. You can extend your Indian Bank PPF account post-maturity (at the end of 15 years from the date on which you started your account).
2. The customer will have to place an extension request for the Indian Bank PPF account within 1 year of maturity.
3. The PPF account can be extended in blocks of 5 years, with/without additional money deposits as per the account holder’s convenience.
4. When the extension period starts, the PPF account will keep earning interest at the predetermined rate upon the account balance.
5. NRIs with an active PPF account may not extend their account post-maturity period of 15 years.

Things to Note While Opening Indian Bank PPF Account 

Here are some of the important points to keep in mind before opting for a PPF account with Indian Bank:

1. Only one Indian Bank PPF account is permitted under one person’s name.
2. NRIs are not allowed to create an Indian Bank PPF account.
3. If the need arises, you can visit the nearest branch of Indian Bank to initiate a request for a change in nomination.
4. Customers must visit the concerned Indian Bank branch to get their passbook for the PPF account.

Loan Against Indian Bank PPF 

With Indian Bank, you can opt for a loan against PPF if the circumstances call for it. However, this option will be applicable if only certain criteria are met, including: 

1. You can opt for a loan against Indian Bank PPF between the 3rd and 6th years of opening the account.
2. The highest loan amount you can avail is up to 25% of your PPF account balance, as determined at the end of the 2nd year since account opening.
3. The loan interest rate is charged at 2% on the applicable PPF interest rate.

Final Word

If you meet the eligibility criteria, possess the required documents and are satisfied with the applicable interest rates, take the step to open your Indian Bank PPF account today! However, make sure to verify the rates and other associated terms and conditions before deciding since these aspects are subject to frequent changes. 

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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.