Indian Bank PPF Account

What is an Indian Bank PPF Account?

The Indian Bank PPF Account is a secure and widely preferred investment option, offering tax benefits under Section 80C of the Income Tax Act. For 2025, the interest rate stands at 7.1% per annum, compounded annually. The account has a 15-year tenure, with a minimum contribution of ₹500 and a maximum of ₹1.5 lakh annually. The interest earned is tax-free, and the amount invested qualifies for deductions under Section 80C. After the 15-year period, you can extend the account to continue saving.

Features of Indian Bank PPF Account

Indian Bank PPF Interest Rate

The interest rate for the Public Provident Fund (PPF) is set at 7.1% per annum. This rate is applicable for the quarter ending March 31, 2025.  Interest is calculated on the lowest balance between the close of the 5th day and the last day of each month. Deposits made after the 5th will not earn interest for that month. 

Indian Bank PPF Account Calculator

The Indian Bank PPF Account Calculator allows you to estimate the maturity amount based on your monthly contributions and the applicable interest rate. It considers the current PPF interest rate and the investment tenure to provide a clear projection of your savings. The PPF calculator helps you plan effectively for long-term wealth accumulation and gives you an idea of your potential returns.

Eligibility Criteria to Open a PPF Account in Indian Bank

• Eligible: Only resident Indians are eligible; 

• Ineligible: NRIs and foreign nationals cannot open a PPF account.

• Age Requirement: Applicants must be at least 18 years old.

How to Open a PPF Account in Indian Bank Online?

Online Option:

Currently, Indian Bank does not offer online PPF account opening. You will need to follow the offline method.

Offline Process to Open a PPF Account:

Here is a simple guide to opening your PPF account:

• Visit the Nearest Branch: Go to your nearest Indian Bank branch.

• Request the Application Form: Ask for the PPF account form and complete it.

• Submit Required Documents: Provide self-attested copies of documents like Aadhaar card, PAN card, and photographs.

• Make Initial Deposit: Deposit the minimum required amount (₹500) to activate the account.

• Receive Your Passbook: Once your PPF account is activated, you’ll get a passbook with all your transaction details.

Indian Bank PPF Premature Withdrawal Rules

You can partially withdraw funds from your PPF account starting from the 5th financial year after opening the account.

Documents Required for Indian Bank PPF Account

The following list of documents must be prepared to open an Indian Bank PPF Account:

• Aadhaar card

• PAN card

• Voter ID

• Recent passport-size photographs

• Completed account opening form

Benefits of Indian Bank PPF Account 

The key benefits of the Indian Bank PPF account are as follows:

• Contributions up to ₹1.5 lakh are eligible for tax deduction under Section 80C.

• The account offers an attractive interest rate of 6.8% per annum (compounded annually), which is tax-free.

• It has a minimum tenure of 15 years, making it ideal for long-term savings.

• You can avail of a loan against the PPF balance after the 3rd year of the account.

• Partial withdrawals are allowed from the 6th year, offering better liquidity.

• The government backs the scheme, ensuring a safe and risk-free investment.

• The account allows you to nominate a beneficiary for smooth management in case of unforeseen events.

• Contributions are flexible and can be made monthly, quarterly, or annually as per your convenience.

Conclusion

The Indian Bank PPF Account is a secure and reliable long-term savings option that offers attractive interest rates and tax benefits under Section 80C in income tax, Use an income tax calculator to calculation tax benefits. With a minimum deposit of ₹500 and a maximum of ₹1.5 lakh annually, it allows individuals to grow their savings with tax-free returns. Opening and managing a PPF account with Indian Bank is easy and convenient, making it an ideal choice for those looking to secure their financial future.