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Key Highlights of Indian Overseas Bank PPF Account

CategoryDetails

Rate of Interest 

7.1% annually

Eligibility

Can be opened at any age by any resident Indian (HUFs and NRIs not allowed)

Tenure

15 years

Nomination 

Facility available for maximum 4 nominations 

Tax Benefit 

Tax deduction u/s 80C up to Rs. 1,50,000

Minimum Deposit amount 

Rs. 500

Maximum deposit amount

Rs. 1,50,000

Eligibility Criteria for PPF

  • Individuals can open a PPF account for themselves or on behalf of minors.
  • Individuals cannot open joint accounts.
  • HUFs, trusts are not eligible to open a PPF account.
  • Non Resident Indians are also not allowed to open the account (if already opened prior to becoming an NRI, such account can be held till maturity but cannot be extended).
  • Only one account can be opened by an individual in one name or in the name of a minor. Multiple accounts if opened have to be merged or will become inactive.
  • Individuals having General Provident Fund or Employees Provident Fund can also open the account.

Documents required for PPF

  • Application Form A (Completed and signed)
  • Pay-in Slip Form B for contribution
  • Nomination Form E duly filled and signed
  • Two recent passport size photographs
  • Identity Proof of the investor (Aadhaar Card, PAN Card, Voter’s ID, etc.)
  • Address Proof of the investor (Aadhaar Card, Electricity Bill, Water bill, Gas bill, etc.)

Features and benefits of IOB Bank PPF account

The investment in PPF accounts has been a traditionally favored investment by all the age groups of the country especially risk averse class of individuals based on the numerous features benefits that the scheme and the bank offer. Some of such features are detailed hereunder,

  • Investment in PPF accounts has many tax benefits in the hands of the individual which include tax exemption of the entire PPF amount at the time of withdrawal up on maturity as well as no wealth tax.
  • Interest accrued every year is also exempt from tax.
  • The contribution to the PPF accounts up to Rs. 1,50,000 is eligible for a deduction under section 80C of the Income Tax Act, 1961.
  • Any contribution beyond the above limit does not attract any tax benefit or interest.
  • Investment in PPF accounts each year can be made via a lump sum payment or a maximum of 12 installments during a financial year.
  • Also, investment in any particular month cannot be more than 2.
  • The current rate of interest on the PPF accounts is at 7.1% per annum and is compounded annually.
  • Investment for a continuous period of 15 years is required to be made failing which the account becomes dormant or inoperative.
  • The investor also has the option to further extend the investment for blocks of 5 years each.
  • The bank permits the investor to secure loans against their PPF accounts from the completion of 3rd year but before the completion of 5th year. The amount and the duration of the loan will be dependent on the balance and the number of years that such PPF account is in existence.
  • The maximum amount that can be availed as loan is 25% of the balance in the PPF account at the end of the first financial year.
  • The interest charged on loans availed against PPF is 1% per annum.
  • The bank also allows single as well as multiple nominations of the PPF account up to a maximum of 4 nominations under the scheme.
  • The investor can stipulate the share of each nominee as well as change it or the number of nominees any time during the tenure of the PPF account.
  • The investor can withdraw from their PPF account before maturity but only after the completion of 5th year from the date of investment.
  • Such withdrawal is permitted only up to the extent of 50% of their balance in the PPF account at the end of 4th year immediately preceding the year in which the amount is withdrawn or at the end of the preceding year whichever is lower.
  • PPF accounts can be transferred from one branch of the bank to another or from one bank to another post office or another bank and vice versa.
  • The bank also provides the online facility for PPF accounts. Such online facility provided by the bank includes viewing the PPF statements. This benefit or feature is available to the existing customers of the bank only, i.e. customers/investors already having a savings or current account with the bank.
  • As per the revised PPF scheme 2019, a person is eligible to hold his/her investment in PPF account beyond the maturity period of 15 years and the account will also attract interest at the prevailing rates till the time it is kept open.

How to open an IOB PPF account?

IOB offers the facility to open a PPF account online as well as by physically visiting the bank. The details of each of the processes are mentioned here.

Physical mode of opening a PPF account – 

A person can open a PPF account with IOB by physically visiting any of the nearest authorized branches. The list of the authorized PPF collection centers is mentioned on the bank’s website. The customer has to submit the following forms which have to be duly filled and signed,

  • Application Form – Form A
  • Pay-in Slip - Form B 
  • Nomination form - Form E 

The applicant is required to submit the necessary KYC documents that are mentioned above along with these forms in order to complete the application process.

Contents of the Account opening Form

The general requirements of the application form for opening a PPF account are mentioned here.

  • Name of the applicant
  • Address of the applicant
  • PAN number of the applicant
  • Initial contribution via Pay-in slip – Form B
  • Account opening branch code
  • Debit Mandate
  • Debit account number
  • Standing instructions
  • Nomination Form E

Premature closure of the IOB PPF account

The bank allows a premature closure of the PPF account held by the investor in his/her own name or on behalf of a minor or a person of unsound mind only in certain cases. The account holder has to submit a Form-5 while applying for such premature closure.

Some of the circumstances under which the account holder is permitted to close the PPF account prematurely are highlighted below.

  • Expenses for treatment of life threatening disease in case of the account holder, his/her spouse or dependent children or parents. Supporting documents and medical reports confirming such disease from treating medical authority need to be submitted along with the application.
  • Expenses for higher education of the account holder, or dependent children. Supporting documents and admission fees confirming such admission in a recognized institute of higher education in India or abroad have to be submitted with the application Form-5.
  • As NRIs are not allowed to invest in PPF, the investor if an NRI, has to close the PPF account up on change in residency status of the account holder. He/she has to submit the copy of Passport and visa or Income tax return in this regard.

IOB Customer Care for PPF

The investors of the PPF account can contact the bank for any of the queries or concerns that they may have or register any complaint or give their feedback regarding any branch of the bank or any services offered by contacting the customer service of the bank. The customer service of the bank can be reached through various means given below.

    763 Anna Salai,

    Chennai – 600002

Phone - +91 044 2852 4212

About IOB PPF Account

Indian Overseas Bank is a public sector bank having its headquarters in Chennai and a huge network of 3400 branches across the country and 6 foreign branches and representative offices across India and abroad. The bank has a huge range of products and services for its national and international customers including investments, insurance, loans, deposits, credit/debit cards, savings schemes and many more such options that the customers can choose from in order to get the best banking solutions.

One of the most popular and favoured savings schemes of the government that is still popular even after decades of its introduction is the Public Provident Fund (PPF). This scheme was introduced with a view to enable the citizens to build a safety net for retirement benefits as well as financial assistance in case of medical emergencies or any other unplanned expenses.

FAQs: IOB PPF Account

1. What is the minimum duration required for premature withdrawals from the account?

A person can withdraw prematurely from the PPF account after the completion of 5 years from the date of opening the PPF account.

2. Where can a person open the PPF account with the bank?

A person can open the PPF account with the bank in any of the authorized collection centers (the list of the same is given on the bank’s website) or via online mode through the bank’s net banking portal.

3. Can a person open a joint PPF account with the bank?

The PPF scheme does not permit joint holding of PPF accounts.

4. Can a person continue holding the investment in the PPF account beyond its maturity?

According to the revised PPF scheme of 2019, a person can hold the PPF account beyond its maturity without any contributions and still earn interest at the prevailing rate.

5. Who is responsible for repayment of loans taken against the PPF account in the event of death of the investor?

The legal heir or the nominee of the investor is responsible for repayment of the loan taken against the PPF account by adjusting the same against the balance in the PPF account.

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