Bank of Maharashtra PPF Account

What is a PPF Account in the Bank of Maharashtra?

A Public Provident Fund (PPF) account is a tax-saving tool designed to help individuals build wealth by systematically saving a portion of their earnings. Opening a PPF Bank of Maharashtra account is a valuable way to build a retirement corpus or save for emergencies while earning guaranteed returns.

Who Can Open a PPF Account in the Bank of Maharashtra?

Any resident Indian over the age of 18 can open a PPF account Bank of Maharashtra at any branch. A parent or guardian can also open a PPF account on behalf of a minor. However, Non-Resident Indians (NRIs) are not eligible to open this account. Additionally, PPF accounts cannot be transferred from the holder to another person, and joint accounts are not allowed. Both parents cannot open separate PPF accounts for the same child.

How to Open a Bank of Maharashtra PPF Account

To open a Bank of Maharashtra PPF account, follow these steps:

• Download the PPF application form from the Bank of Maharashtra’s official website.

• Fill out the form with the necessary details.

• Submit the completed form along with the required documents to the nearest branch of the bank.

Generally, you need to submit the following documents:

• Form A (Application form)

• Form E (Nomination form)

• PAN card

• Aadhaar Card

• Identity and address proof

• Bank statement

• Recent passport-sized photographs

Note that eligibility and documentation requirements may vary. It's always best to check with the bank directly for the most up-to-date information.

Features and Benefits of PPF Account in Bank of Maharashtra

Here are the key features and benefits of opening a Bank of Maharashtra PPF account online or offline:

• Investment Amount and Frequency: The minimum deposit in a financial year is Rs. 500, and the maximum is Rs. 1.5 lakh, with a maximum of 12 installments per year. Account holders can deposit a lump sum or in installments. Failure to maintain the minimum balance will result in the account being discontinued, with a penalty of Rs. 50 required for revival.

• Maturity Tenure: The PPF account has a tenure of 15 years and cannot be extended, unlike PPF accounts offered by some other financial institutions.

• Tax Treatment: Interest earned on the Bank of Maharashtra PPF account is exempt from taxation under the Income Tax Act, and the deposit amount is also exempt from wealth tax.

• Withdrawal Facility: Account holders can make withdrawals after the account has been active for 6 years. Only one withdrawal is allowed, equivalent to 50% of the balance at the end of the 4th year or the preceding year, whichever is lower.

  • Example: If Ms. Seema wants to withdraw money in September 2019, and her corpus at the end of the 4th year was Rs. 2,20,000 (50% = Rs. 1,10,000) and at the end of the preceding year was Rs. 5,45,000 (50% = Rs. 2,72,500), she can withdraw Rs. 1.1 lakh.

• Loan Facility: Account holders can avail a loan of at least 25% of the available balance after the account has been active for 3 years.

• Nomination Facility: Account holders can nominate one or more persons to receive the PPF account balance in the event of their death and can change or cancel the nomination as needed.

Interest Computation on PPF Account

The interest rate on the PPF account of Bank of Maharashtra is determined quarterly by the Ministry of Finance. Interest is calculated on the minimum amount between the 5th and the last day of the month and is credited on March 31st each year. A PPF calculator can help determine the maturity value of deposits.

Conclusion

The Bank of Maharashtra PPF account is a reliable and tax-efficient way to save for the future. With its fixed tenure, guaranteed returns, and tax benefit in section 80c, it is an excellent choice for individuals looking to build a substantial corpus for retirement or other long-term goals.