Canara Bank PPF Account

What is a Canara Bank PPF Account?

The Canara Bank PPF Account is a safe and long-term investment option backed by the government. It offers tax benefits under Section 80C, and the interest earned is completely tax-free. The account has a tenure of 15 years, with the option for partial withdrawals from the 7th year. The government revises the interest rate every quarter. You can start investing with a minimum deposit of ₹500 and contribute up to ₹1.5 lakh per year. The account can be managed both online and offline, making it a convenient choice for secure and steady wealth growth.

Features of PPF in Canara Bank

Canara Bank PPF Interest Rate

The interest rate on the PPF is set by the Government of India, with the current rate being 7.1% per annum. The PPF interest is compounded annually.

Canara Bank PPF Calculator

The Canara Bank PPF Calculator is a useful tool that helps individuals estimate the maturity amount of their PPF account. By entering details such as the monthly or yearly investment amount, interest rate, and investment tenure, users can calculate their expected returns. This PPF calculator allows investors to plan their savings efficiently and understand how much they will receive at the end of the 15-year lock-in period.

Eligibility Criteria to Open Canara PPF Account

• Residents aged 18+ can open an account.

• Guardians can open one account for a minor or person with an unsound mind.

• Only one account per minor/person with an unsound mind.

• No joint accounts allowed 

• Exemption: NRIs & HUFs cannot open an account.

How to Open a PPF Account in Canara Bank Online?

• Visit the Canara Bank Website: Go to the official Canara Bank online portal.

• Select Account Opening: Click on the 'Account Opening' option for PPF registration.

• Fill in Your Details: Enter your personal information, including your name, date of birth, email ID, and mobile number (for OTP verification).

• Verify with OTP: Input the OTP sent to your mobile to proceed with the application.

• Complete the Application: Fill out the PPF account opening form and upload necessary documents like Aadhaar and PAN cards, along with a passport-sized photograph.

• Submit Your Application: After reviewing your details, submit the application. You can print a copy for your records if needed.

• Receive Confirmation: Once approved, you will receive a PPF passbook containing your account details, which you should keep updated by visiting a Canara Bank branch periodically.

Canara Bank PPF Withdrawal Rules

The fund withdrawal rules in Canara PPF account are listed below:

• Withdrawal Eligibility: Withdrawals allowed after completing 7 years.

• Withdrawal Limits: Maximum withdrawal is the lower of:

  • 50% of the balance at the end of the 4th year before withdrawal, or

  • 50% of the balance at the end of the previous year.

• Frequency: Only one withdrawal per financial year is permitted.

• Premature Closure: Allowed after 5 years under specific conditions:

  • Medical emergencies

  • Higher education expenses

  • Change in residency status to NRI

• Loan Facility: Available after the 3rd year, with a maximum loan of 25% of the balance at the end of the 2nd year.

Documents Required for Canara PPF Account

• Duly filled application form.

• Two passport-size photographs.

• Identity and address proof as per KYC norms:

  • Passport

  • Driving License

  • PAN Card

  • Voter ID (Election Commission of India)

  • NREGA Job Card (Signed by State Govt. officer)

  • Aadhaar Letter (Issued by UIDAI)

Canara Bank PPF Account Benefits

Following are the key benefits of opening a PPF Account in Canara Bank:

• Tax Rebate: Contributions are eligible for tax rebates under Section 80C of the Income Tax Act, 1961, up to a limit of ₹1.5 lakh (under the old tax regime).

• Withdrawal Facility: Partial withdrawals are allowed after the 6th year of investment.

• Loan Facility: Loans can be availed against the PPF balance starting from the 3rd year.

• Account Extension: The PPF account can be extended beyond the 15-year term with or without contributions.

• EEE Benefits: The PPF offers EEE (Exempt, Exempt, Exempt) tax benefits, meaning the contributions, interest earned, and maturity amount are all tax-free.

• Security: The PPF is a government-backed scheme, making it a risk-free investment.

• Easy Access: Canara Bank offers online account management, making it easy to monitor and transfer funds.

To Sum Up

Canara Bank’s PPF account is a safe and effective way to save long term. With attractive interest rates and tax benefits under Section 80C, it helps you grow your wealth steadily. The account offers a 15-year tenure, which can be extended, providing flexibility. Being government-backed, it ensures a secure investment option for those looking for consistent returns.