PNB PPF Interest Rate
PNB PPF interest rate is a government-sponsored scheme available to all adults and adolescents in India through centralized commercial and public sector banks. PNB PPF interest rate is a 5-year lock-in investment scheme that helps establish a financial corpus even after retirement. The PNB PPF interest rate calculator assists in determining PPF interest returns and maturity value when the tenure has ended.
PPF account deposits, interest, and refunds are tax-free under the EEE (Exempt-Exempt-Exempt) tax payment category. PPF accounts can now be opened and operated by Indian residents with a variety of public sector banks in India, including Punjab National Bank (PNB) and leading private sector banks and post offices.
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PPF Account Interest Rate in PNB for FY 2023-24
The PNB PPF interest rate may vary from quarter to quarter depending on Finance Ministry policies. However, the accessible PPF account interest rate in PNB has been set at 7.1 percent for Q1 (April-June) FY2023-24.
The historical PPF account interest rate in PNBs is as follows:
| Period | PPF Account Interest Rate in PNB |
| January to March 2022 | 7.1% |
| October to December 2021 | 7.1% |
| July to September 2021 | 7.1% |
| April to June 2021 | 7.1% |
| January to March 2021 | 7.1% |
| October to December 2020 | 7.1% |
| July to September 2020 | 7.1% |
| April to June 2020 | 7.1% |
| January to March 2020 | 7.9% |
| October to December 2019 | 7.9% |
| July to September 2019 | 7.9% |
| April to June 2019 | 8% |
| January to March 2019 | 8% |
| October to December 2018 | 7.8% |
| July to September 2018 | 7.8% |
| April to June 2018 | 7.9% |
The PPF account interest rate in PNB has compounded annually.
How to Open a PNB PPF Account
PNB does not now offer the option of opening a PPF account online; instead, you must use the offline way. However, the steps to open a PPF account on paper are as follows:
- Form A must be filled out and submitted to any Punjab National Bank branch.
- Attach any required documents for the PNB PPF Account opening process, such as government-issued ID evidence (Aadhaar, PAN, etc.) and address proof documents (latest utility/phone bill).
- To make the initial deposit for the PNB PPF account, you need to fill out a deposit slip.
- Remember to bring the original documents with you for verification, and all documents must be self-attested.
When the account is opened, the bank will issue a PPF passbook with information such as the PPF account number, nominee, and credit/debit if PPF funds are available, balance, branch code, etc. This passbook can be updated by visiting a nearby PNB Bank office.
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PNB PPF Interest Rate Calculator
The PNB PPF interest rate calculator makes calculating the entire accrued amount at the end of the PPF account’s maturity term simple for interested subscribers or deposits.
The calculator considers the following variables:
- Deposits’ frequency (monthly or annual).
- The amount deposited (fixed or variable depending on deposit frequency) (A).
- Deposit term (limited by the following criteria) (N).
- A 15-year lock-in term is required.
- Accounts are renewed in 5-year increments.
- After N+1 year, you’ll be able to see your total interest and balance.
- Interest rates (managed by the Ministry of Finance) (R).
Since the PNB PPF interest rate calculator calculates monthly and adds years to the outstanding sum, it is subject to change depending on interest rates and quantities invested. However, the PNB PPF interest rate calculator can estimate how much money you’ll have in your PNB PPF interest rate account after the maturity term.
Criteria for Eligibility
To open a PNB Bank PPF account, you must meet the following requirements:
- PNB PPF accounts are available to Indian residents aged 18 and up.
- In addition, a minor child’s parents or guardians can open a PPF account on their behalf.
- However, joint holdings and only one PPF account per person are allowed in any bank/post office.
- NRIs are not allowed to open PNB PPF accounts. However, if a person with a PNB PPF account becomes an NRI before it matures, they can keep the account open on a non-repatriation basis until the fund grows.
PNB PPF Interest Rate Account Features
The following features are available to subscribers who open and maintain a PPF account with PNB.
- PNB PPF Accounts have a 15-year maturity time from the account opening date.
- If a request is made within one year before the maturity date, a 5-year extension in blocks is available after the 15-year period has ended.
- PNB Bank PPF Accounts require a minimum investment of Rs. 500 per year to be active, with a maximum investment of Rs. 1.5 lakhs each year.
- Subscribers can set up online standing instructions for monthly contributions using net banking (max. 12 annually).
Loan/Withdrawal Rules for PNB PPF Accounts
PNB PPF users can take out a loan against their PPF account balance if they meet the following criteria:
- After three years from the account opening date, you can borrow up to 25% of your PNB PPF account balance after the first year.
- The PNB PPF loan has a 36-month repayment period and an interest rate of 2% plus the appropriate PPF account rate.
- PPF loans can be repaid in whole or in installments.
- Withdrawals from a PNB PPF account are permitted when the account has been open for seven years.
- The withdrawal amount is between – 50% of the PPF account balance at the end of the previous year. 50% of the PPF account balance at the end of the fourth year preceding the year in which the money is withdrawn
- If your PPF account has already matured and been extended, you can take up to 60% of the account balance at the commencement of the extension period.
FAQs on PNB PPF Interest Rate
Q. What are the PPF account’s minimum and maximum investment limits?
An investor must contribute at least Rs. 500 per year to their PPF account, with Rs. 1, 50,000 per year.
Q. Are there any tax advantages to investing in a PPF?
Under Section 80C of the Income Tax Act, 1961, a PPF account permits the investor to claim tax advantages up to Rs. 1, 50,000 each year.
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