PNB PPF Interest Rate 2024 – Open PPF Account Online

In today’s banking landscape, PPF (Public Provident Fund) is a long-term savings and investment instrument, highly popular among Indian investors. Punjab National Bank’s Public Provident Fund (PPF) scheme is a promising investment method which ensures sizable returns and tax benefits as per Section 80C of the Income Tax Act. 
In this blog, we will walk you through a comprehensive guide on the applicable PNB PPF interest rates that you can avail. 

What Is a PNB PPF Account? 

The Punjab National Bank PPF account is a Government of India-backed, low-risk, tax-saving investment that suits various investor groups including investors seeking guaranteed returns. Moreover, the PNB PPF interest rate, just like other banks’ PPF rates, is usually greater than FD and RD rates. Tax-exempt interest, maturity amount and withdrawals also add to the popularity of this investment instrument. For more information, keep reading this detailed guide. 

Key Features of PNB Public Provident Fund Account

Here are some key features of the Public Provident Fund Account offered by the Punjab National Bank. 

1. The lock-in period of a PPF account is 15 years, from the date of account opening.
2. After completion of the 15-year tenure, you can extend your PNB PPF account in blocks of 5 years, if you place a request within 1 year from the maturity date.
3. A minimum investment of ₹500 is required to keep a PNB PPF account active. The maximum investment allowed in the account in a financial year extends to ₹1,50,000.
4. Depositors can set up online standing instructions for monthly contributions through net banking. A maximum of 12 deposits are allowed annually.
5. Interest, maturity amount and withdrawals in the case of PPF accounts are exempt from taxation under Section 80C of the Income Tax Act.

PNB PPF Interest Rates

Based on decisions made by the Finance Ministry, the PNB PPF interest rate may change from one quarter to another. The applicable rate for the 3rd quarter (October-December) for this financial year (FY 2023-24) is set at 7.1%.

How to Open a PPF Account in PNB Online?

PPF or Public Provident Fund is one of the most popular long-term investment options offered by the Central Government for Indian residents. Being a long-term investment, it fits into the portfolio of all investors with different risk profiles. Now that you know the latest PNB PPF interest rate, let’s discuss the ways of opening PNB PPF account online. 

1. Via Accessing the PPF Form from the ‘Download Forms’ Section 

Steps to initiate opening of a PNB PPF account online by accessing the PPF Form PDF:

• Step 1: Open the official website of Punjab National Bank. 
• Step 2: Click on the ‘Download Forms’ option at the top-right, beside the ‘Internet Banking’ button.
• Step 3: Click to expand the ‘Other’ section at the bottom.
• Step 4: Click on ‘PPF Forms’.
• Step 5: Download the form, take a print, fill it up with the required details and submit it to the nearest PNB branch along with other necessary KYC documents.

2. Via the e-PPF feature of PNB’s Internet Banking System

Steps to open a Punjab National Bank PPF account through internet banking:

• Step 1: Log in to the PNB internet banking system (IBS) using your username and password.
• Step 2: Choose the following options in this order; ‘My shortcut’ -> ‘PPF Account’ -> ‘Open a PPF Account’. The system will initiate the Inet PPF account opening process.
• Step 3: Choose between the Self or Minor account options. 
• Step 4: Fill up all details and select the name of the authorised branch where the PPF account will be opened and maintained.
• Step 5: Click on ‘Submit’.
•  Step 6: A request confirmation will appear on your screen after you ‘Submit’. Click on it. 
• Step 7: Enter your ‘Transaction Password’ and click on ‘Submit’.
• Upon submitting, IBS will generate the ‘Cyber Receipt’ with the GBM (Government Business Module) Reference Number. All details submitted by you for opening a PPF account shall be available in the system for 7 days only.
• Step 8: Download the PDF file by pressing ‘OK’ and take a print-out of the Account Opening Form (AOF) which has the GBM Reference Number on it.
• Step 9: Paste your photo on AOF and attach necessary KYC documents (copies of PAN, Voter ID, Ration Card, etc.)
• Step 10: Submit AOF along with documents to the PNB branch you selected to open your PPF account.

How to Open a PPF Account in PNB Offline?

Here is a step by step guide on how to open an account offline and avail its attractive PNB PPF interest rate.  

• Step 1: Visit the nearest PNB Bank branch.
• Step 2: Follow directions from bank executives to collect a PPF account opening form.
• Step 3: Fill out the form and submit it along with supporting KYC documents.

Documents Required to Open a PPF Account in PNB

Here is a list of documents required for opening a PPF account in Punjab National Bank, other than 2 passport-size photographs of an applicant and a pay-in slip from an authorised branch. 

1. Identity Proof

1. PAN Card
2. Voter ID Card
3. Driving Licence
4. Aadhar Card 
5. Passport

2. Address Proof

1. Electricity Bill
2. Telephone Bill
3. Ration Card

Take note of the following factors while submitting the above-mentioned documents. 

1. Carry original documents for verification.
2. You must self-attest all the documents.
3. A PPF Account passbook is issued to you, once the account is opened. This passbook is updated with all the transactions on your PPF Accounts. It is required for claiming tax deductions under Section 80C of the Income Tax Act.

Eligibility to Open a PPF Account in PNB

Here are some basic eligibility criteria for availing the high-yielding PNB PPF interest rate are as follows:

1. A resident individual can open a PNB PPF account in his/her name or as the guardian of a minor/’person of unsound mind’.
2. You cannot open PPF accounts in joint names.
3. Non-resident Indians (NRIs) can not open a PPF account w.e.f. 25.07.2003.
4. HUFs (Hindu Undivided Families) as a single entity, can not open a PPF account w.e.f. 13.05.2005.

PNB PPF Withdrawal Rules

The maximum limit for withdrawal amount is set at 50% of the accumulated corpus at the end of the fourth year from the date of account opening.

The table below illustrates PPF withdrawal rules based on time of withdrawal, grounds for withdrawal, and amount to be withdrawn.

PNB PPF Formula and Calculation

Based on a predetermined rate of interest decided by the government, the PPF interest is calculated every month. However, the PPF account is credited with the interest at the end of the financial year.

PPF returns are calculated using this formula:- F = P [({(1+i) ^n}-1)/i]

The variables in the formula are:-

• F – Maturity value of PPF
• i – Rate of interest
• P – Annual instalments
• n – Total number of years

Let us simplify the formula with the help of an example. Suppose you want to invest ₹1,50,000 in the PNB PPF scheme. Given the rate of interest and tenure of this scheme, we can easily calculate the maturity value of such a PPF investment. 

F = 1,50,000[({(1+7.1) ^15}-1)/7.1] = ₹40,68,209

How to Use a PNB PPF Calculator?

Besides the above-mentioned formula, one can also determine the maturity value of their PPF investment using an online PPF calculator. All you need to do is put values of the yearly invested amount and period (in years) of account activity. 

The rate of interest stays fixed at 7.1% (quarterly rate based on the Finance Ministry’s decision) in the calculator. Once you have added the required inputs, the online application instantly calculates and generates results for ‘Total invested amount’, ‘Total interest’, and ‘Maturity value’.

Steps to Access PNB PPF Passbook Online

To access any information regarding your PNB PPF account online, you must ensure your PNB savings/current account is linked with your PPF account. 

You can log in to the PNB Internet Banking System to check your current PPF account balance or generate e-statements, among other options.

The PNB Bank also provides an online passbook application called PNB ‘mPassbook’. It is a digital passbook that allows PNB customers to easily track their account details, check their transaction history and download mini statements anytime. 

Follow the below-mentioned steps to access the ‘mpassbook’ services through mobile banking: 

• Step 1: From the Play Store or App Store, download the PNB mBanking application on your smartphone.
• Step 2: Once downloaded, install the app.
• Step 3: Sign in with your mobile banking PIN or MPIN.
• Step 4: Check for the ‘mPassbook’ option.
• Step 5: Specify the required account number and click ‘Continue’. 

You will now be able to access the digital Passbook. The system will display previous transaction data, along with the date and time on the screen.

Steps to Check PNB PPF Balance 

Here’s how to initiate a PNB PPF account balance check both online and offline. 

1. Checking Account Balance Online

You can check your PPF balance online only if you have an existing savings/current account at PNB and have linked it to your PNB PPF account.

Follow the below steps to check your PPF account balance online.

• Step 1: Activate the internet banking facilities for your PNB bank account.
• Step 2: Log in to the ‘Internet Banking System’ of PNB using your username and password. After logging in, you will find the details related to your PPF account and savings accounts.
• Step 3: You can select the ‘PPF Account’ tab and easily check your account balance from there.

Additionally, you can also view all the particulars of your inactive, matured, closed and old PPF accounts under PNB through the same Internet banking account.

2. Checking Account Balance Offline

To check your PPF account status offline, you have to visit the nearest PNB branch through which you have opened your account with your PPF passbook and update it at the kiosk machine, or request the bank representative for directions.

How to Download PNB PPF Account Statement?

You can easily download the PNB PPF account statement by following a few simple steps. For this, you need to ensure that your PNB savings/current account is linked with your PNB PPF account. 

To initiate the download process, log in to the PNB Internet Banking System using your Internet banking credentials. Navigate to the ‘Accounts’ section to check your current PNB PPF account balance or generate account statements in a downloaded PDF format. 

Extension of PNB PPF Account 

PPF accounts have a maturity period of 15 years. However, you can extend it for as long as you wish to continue. You can extend your PPF account in blocks of 5 years at a time.

For example, if your account matures on March 31st 2015, you can extend it till March 31st 2020. The next extension will be until March 31st 2025 and so on.

Things to Note While Opening PNB PPF Account

You must keep in mind the following factors before opening a PPF account with PNB.

1. Having a PNB savings/current account is mandatory.
2. Registering to the PNB Internet Banking portal is a must so that you have a functioning username and login password.
3. You must be a resident Indian to be eligible for the PNB PPF account. 
4. PPF accounts can not be opened in joint names.
5. An individual is allowed to open only one account in their name. 
6. If a second PPF account is opened in violation of PPF rules of the bank, it will be considered an irregular account. Such an account will be closed and it will not accrue any interest.
7. You must have all KYC document copies ready with you while applying for a PNB PPF account. You might need to carry original documents to the bank for verification if required. 
8. The documents you submit at the time of opening this account should be self-attested. 
9. After opening a PPF account, you will receive a PPF account passbook, which is regularly updated with all transactions related to your investment.

How to Transfer a PNB PPF Account?

You can transfer a PPF account from one bank to another or from one branch to another, by requesting as a subscriber. You can also transfer your account standing in any bank or post office to PNB Bank and vice versa. Here’s how to do so. 

• Step 1: Collect the Transfer Application Form by visiting the PNB branch where you opened your PPF account. 
• Step 2: Specify the complete address of the bank’s branch where you want to transfer the PNB PPF account in the transfer application form.  
• Step 3: Submit the ‘Transfer Application’ at the same branch. 

After submitting the form, your PNB branch will initiate the transfer process.

Loan Against PNB PPF

You can get a loan sanctioned against your PNB PPF account, as per the below rules.

1. You can ask PNB to grant a loan at any time after the expiry of 1 year from the end of the year in which you made the initial subscription (i.e. opened the PPF account) but before the expiry of 5 years from the end of the initial subscription year. 
2. The loan amount should not exceed 25% of the amount that stood to your credit at the end of the second financial year immediately preceding the financial year in which you applied for the loan.
3. Further loans can be taken provided you have repaid earlier loan(s) in full.
4. If you take a loan in the 4th, 5th or 6th financial year, you can take a loan up to 25% of the balance at your credit at the end of the 2nd, 3rd or 4th financial year respectively.
5. You cannot take a loan after the end of the 6th financial year from the financial year of account opening.
6. You can take a loan only once a year even though you repay the loan you took, in the same year. This is because the loan amount limit is fixed for each year.

Final Word

Based on decisions by the Finance Ministry, the PNB PPF Interest Rate available for the 3rd quarter (October-December) of FY2023-24 stands at 7.1%, which is greater than many available FD and RD rates. With tax exemptions on interest, attractive maturity amount and withdrawal flexibility, PNB PPF accounts make for great long-term savings instruments. 

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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.