April 26, 2023

PNB PPF Account - Interest Rate & How to Open

If you are looking for a reliable investment avenue for long-term savings, opening a Public Provident Fund (PPF) account with Punjab National Bank (PNB) can be a good decision. PPF is a government-backed savings scheme that offers a tax-free return and is considered one of the safest investment options for individuals. This article will guide you through a PNB PPF account and its various features and benefits.

What is a PPF Account?

PPF (Public Provident Fund) is a long-term savings scheme introduced by the Government of India in 1968. It is designed to encourage individuals to save for retirement and other long-term financial goals. A PNB PPF account can be opened by an individual, either alone or jointly with other individuals, with a minimum contribution of Rs. 500 per year and a maximum contribution of Rs. 1.5 lakh per year. The account has a tenure of 15 years and can be extended for an additional five years.

Benefits of a PNB PPF Account

One of the main benefits of a PPF account is that it offers a tax-free return. The interest earned on the account is exempted from tax. The contributions made towards the account are eligible for a tax deduction under Section 80C of the Income Tax Act.
Another advantage of a PNB PPF account is that it is a government-backed scheme, which makes it among the safest investment options for individuals.

How to open a PNB PPF Account

Opening a PPF account with Punjab National Bank is a straightforward process. Here are the steps you need to know on how to open a PPF account in PNB.
  • Step 1: Visit the nearest PNB branch and collect the PPF account opening form.
  • Step 2: Fill in the required details in the form, including your personal information, nominee details and signature.
  • Step 3: Attach the required documents, including identity proof, address proof and a passport-size photograph.
  • Step 4: Submit the form and documents to the PNB branch.
  • Step 5: You will receive the PPF account passbook once the documents are verified.
To open a PNB PPF account online, follow these steps.
  • Visit the PNB (Punjab National Bank) website and click on the ‘Net Banking’ option.
  • If you are an existing customer, log in with your user ID and password.
  • If you are a new user, click ‘New User Registration’.
  • After logging in, select ‘PPF Account’ under the ‘Accounts’ tab.
  • Fill out the online application form with the required details, including personal information, nominee details and KYC documents.
  • Once you submit the form, you will receive a reference number, which you should note down for future reference.
  • You will need to make an initial deposit to activate your PPF account. After which you can transfer the amount from your PNB savings account or any other bank account.
  • After the deposit, your PPF account will be activated.
  • You will receive a confirmation email.
Note: Before opening a PPF account online, read the rules and regulations governing PPF accounts and understand the tax benefits and other details related to the account. You can also check your PNB PPF account balance online.
PNB PPF Account: features and benefits
Here are some of the key features and benefits of a PNB PPF account.
Interest rate: The interest rate on PNB PPF accounts is decided by the government and is subject to change every quarter. Currently, the interest rate for the quarter ending March 2021 is 7.1%.
Minimum and maximum deposit: The minimum deposit amount for a PNB PPF account is Rs. 500 per year, and the maximum deposit amount is Rs. 1.5 lakh per year.
Tenure: The PNB PPF account has a tenure of 15 years. It can be extended for an additional five years.
Tax benefits: The contributions made towards a PNB PPF account are eligible for a tax deduction under Section 80C of the Income Tax Act. Moreover, the interest earned on the account is tax-free.
Loan facility: PNB PPF account holders can avail of a loan against their account from the third to the sixth financial year.
Withdrawal: Partial withdrawal is allowed from the seventh financial year, after the account opening date.
Nomination: PNB PPF account holders can nominate one or more individuals to receive the account's proceeds in the event of their death.
Joint Account: A PNB PPF account can be opened jointly with another individual.

PNB PPF Account vs PNB Sukanya Samriddhi Yojana (SSYPNB)

PNB also offers another popular savings scheme called the Sukanya Samriddhi Yojana (SSY), which is designed for the welfare of the girl child. However, both PPF and SSY are savings schemes. There are some critical differences between the two:
Eligibility: Any individual can open a PPF account. An SSY account can only be opened for a girl child below the age of 10.
Investment limit: The maximum investment limit for a PPF account is Rs. 1.5 lakh per year. For an SSY account the maximum investment limit is Rs. 1.5 lakh per year is only applicable till the girl child attains the age of 18.
Tenure: The tenure of a PPF account is 15 years, which can be extended for an additional five years. The tenure of an SSY account is 21 years. The account can be closed after the girl child attains the age of 21.
Interest rate: The interest rate on both PPF and SSY accounts is decided by the government and is subject to change every quarter. The interest rate for the quarter ending March 2021 is 7.1% for PPF and 7.6% for SSY.

Conclusion

Opening a PNB PPF account can be a good investment decision for individuals looking to save for their long-term financial goals. With its tax-free returns, government backing, and flexible features, a PPF account offers a safe and secure investment option. However, it is essential to understand the eligibility criteria, investment limit and other elements of the account before making the decision to open one.
Note: To help plan your trading activities and investment strategies, find here the NSE Holidays 2023, BSE Holidays 2023, MCX Holidays 2023, and Muhurat Trading 2023. Also see here to know more about the stock market timings.

Disclaimer

The investment options and stocks mentioned here are not recommendations. Please go through your own due diligence and conduct thorough research before investing. Investment in the securities market is subject to market risks. Please read the Risk Disclosure documents carefully before investing. Past performance of instruments/securities does not indicate their future performance. Due to the price fluctuation risk and the market risk, there is no guarantee that your personal investment objectives will be achieved.

Never miss a trading opportunity with Margin Trading Facility

Enjoy 2X leverage on over 900+ stocks

Upstox Margin Trading Facility
Apple Logo
Downloadlogo
iOS App
Google Play Logo
Downloadlogo
Android App

RELATED ARTICLES

EPF Interest Rate 2023 & How to Calculate it Online

EPF (Employee Provident Fund) is a savings-retirement scheme devised for salaried employees under the Employees Provident Fund and Miscellaneous Act of 1952. The management of this provident fund is overseen by the Employees’ Provident Fund Organization or EPFO. In this policy, the employee and the employer contribute monthly. Every monthly installment is added to the EPF corpus till the retirement of an individual, and the interest is accrued at a stipulated rate on these deposits. Upon retirement, this EPF corpus encompasses the monthly contributions of the employee and the employer, including the interest generated over the years. The fund collected can also be withdrawn in certain situations as decreed by EPFO, like during unemployment. Thus, the scheme of EPF has been designed to act as a financial safety net for when an employee does not get a monthly paycheck.

Everything you Wanted to Know About Mahila Samman Savings Certificate

Mahila Samman Savings Certificate is a small savings scheme for women investors that aims to empower them financially. It offers a fixed interest rate of 7.5% and a two-year maturity period. Over the years, the Government of India has come up with several schemes for women empowerment, such as Beti Bachao Beti Padhao, Bhartiya Mahila Bank Business Loan, Dena Shakti Scheme, etc. Mahila Samman Savings Certificate is the latest in this list, which aims to empower women financially. This small savings scheme announced in [Union Budget 2023](https://upstox.com/market-talk/category/union-budget-2023/) has now been launched. Read on to learn about it in detail.

National Savings Certificate (NSC) Interest Rate 2023

We consider mutual funds, equity, and stocks, as the only investment channels. But are these financial instruments accessible to all? In India, banking services are still not available to many. Here comes the post office. Post Offices in India are widespread, and their roots have reached even the remotest areas in the nation. And they offer banking facilities like savings accounts and investment schemes to every Indian citizen, irrespective of their socio-economic strata. National Savings Certificate or NSC is an investment scheme offered by Indian post offices. Backed by the Indian government, this investment scheme is secure and low-risk. This perfect savings policy with decent returns is accessible to every Indian citizen except NRIs (Non-resident Indians) and HUFs (Hindu Undivided Families).

NPS Tier 1 Account - Tax Benefit, Scheme, & How to Withdraw Online

The National Pension Scheme is one of India's most popular retirement planning instruments. The National Pension System Trust (NPS Trust) manages the scheme. The NPS Trust is a division of the PFRDA, or Pension Fund Regulatory and Development Authority. The PFRDA comes under the Indian Ministry of Finance’s jurisdiction. The PFRDA formed the NPS Trust according to the Indian Trusts Act of 1992’s provisions. The NPS Trust monitors the activities of various NPS intermediaries, such as Pension Funds, Custodians, Central Recordkeeping agencies (CRA), Trustee Banks, Aggregators, Points of Presence, and Annuity Service Providers (ASPs). The Trust also coordinates with Pension Funds (PFs) to ensure that the subscribers’ interests are supreme. A quick scan of NPS subscription status proves that more and more investors are reposing their faith in this government-backed pension scheme for the masses. For instance, the total number of subscribers was 1,57,44,183 in FY 21-22, as against 1,43,90,544 in FY 20-21 and 1,34,12,640 in FY 19-20. Similarly, the total AUM (Asset Under Management) of NPS was 7,15,670 in FY 21-22, as against 5,62,338.33 in FY 20-21 and 4,06,952.62 in FY 19-20. Unlike EPF, or Employees Provident Fund, NPS is not mandatory; instead, it is voluntary. The fund aims to create a sizable corpus for investors after their retirement. NPS accounts are of two types - Tier-1 accounts and Tier-2 accounts. This article elaborates on the definition and scope of NPS Tier-1, withdrawal limits, tax benefits, and the like.