IDBI Bank PPF Account

An IDBI Bank PPF account is a Public Provident Fund (PPF) account opened with IDBI Bank. A PPF account is a long-term savings scheme offered by the Indian government. It's popular for its safety, guaranteed returns, and tax benefits. Common to all PPF Accounts, the IDBI PPF account also has a maturity period of 15 years and allows deposits, withdrawals, and loans under specified conditions. The interest earned in an IDBI Public Provident Fund (PPF) account is exempted from income tax liabilities.

IDBI Bank PPF Interest Rate

Investing in the IDBI Bank PPF is a wise and secure choice, offering an attractive annual interest rate of 7.1%, compounded annually, and government-backed. The important aspects of the IDBI PPF account are summarised in the table below:

IDBI PPF Interest Rate 7.10% p.a.
Tenure 15 years
Minimum Deposit ₹500
Maximum Deposit ₹1,50,000 (in a financial year)
Loan facility Available from 3rd to 6th year

IDBI Bank PPF Account Eligibility

Opening a PPF account comes with specific eligibility criteria. Here's a breakdown:

  • Must be an Indian resident.
  • A PAN card is mandatory for all account holders.
  • Parents, grandparents, or legal guardians can open accounts for minors or individuals unable to manage their finances.
  • Only one PPF account is allowed per minor
  • Investment limits for the minor are combined with the parent's/guardian's limit for individual contributions.

Important Restrictions:

  • PPF accounts do not allow joint holdings.
  • Hindu Undivided Families (HUFs) and Non-Resident Indians (NRIs) are not eligible to open PPF accounts.

Documents Required to Open IDBI PPF Account

To open a PPF account with IDBI Bank, you'll need the following documents:

  • A duly-filled and signed IDBI Bank PPF application Form A
  • Self-attested copies of address proof, such as Passport, Aadhaar Card, or an Electricity Bill, in line with KYC norms.
  • Self-attested copies of identity proof, including Aadhaar Card, PAN Card, Driving License, Voter ID, etc.
  • A filled Nomination Form E.
  • Recent passport-size photographs.

Key Features of IDBI Public Provident Fund Account

Here are some of the key features of the IDBI Bank PPF account:

  • Account Duration: The general duration of the IDBI PPF account is 15 years. The extension is allowed for in blocks of 5 years at the investor's discretion.
  • Tax benefits: Deposits made to your PPF account qualify for deduction under Section 80C of the Income Tax Act, up to a limit of ₹1,50,000. Additionally, the interest earned on your PPF account is completely tax-free.
  • Contributions: The minimum annual contribution is ₹500 and the maximum annual contribution ₹1,50,000. Contributions beyond Rs. 1,50,000 in a year do not qualify for interest or tax benefits.
  • Interest Rate: IDBI Bank PPF accounts offer an annual interest rate of 7.1% effective from April 1, 2021. Interest is calculated on the minimum balance between the 5th and the last day of the month. Interest is paid on March 31 each year.
  • Nomination: Investors can nominate one or more persons (maximum 4) by submitting Form E. The shares for each nominee can also be defined.
  • Loans and Withdrawals: Investors can avail loans and withdrawals based on the account's age and available balance.
  • Account Transfer: PPF accounts can be transferred between branches of the same bank, different banks, or post offices across the country. Submit a written request for the transfer.
  • Post-Maturity Holding: Investors may hold the IDBI PPF account post-maturity without any contribution. These accounts remain active, earning interest at prevailing rates.

IDBI PPF Calculator

Effortlessly assess the returns on your PPF investment with our user-friendly PPF calculator. Input essential details such as your quarterly, monthly, or yearly investments, and see the calculated maturity amount within seconds.

It's a quick and efficient way to estimate the potential returns on your PPF investment.

How to Withdraw IDBI PPF Amount

Withdrawing funds from your IDBI Bank PPF account depends on whether you want to make a partial withdrawal or a maturity withdrawal:

Partial Withdrawal:

  • Visit your IDBI Bank branch and submit a completed Form 2 along with the required documents.
  • Online (if available): If IDBI Bank offers online PPF withdrawal through their net banking or mobile banking platform, you can use that option. However, this feature might not be available yet.

Things to Remember in Case of Partial Withdrawal

  • You can make one partial withdrawal per financial year after completing 5 years from opening the account.
  • You can withdraw a maximum of:
  • 50% of the balance at the beginning of the previous financial year (excluding the current year's contribution) OR
  • 40% of the contribution made in the last 5 years, whichever is lower.
  • Premature closure before maturity is allowed in specific cases (e.g., medical emergencies), but you will earn lower interest rates.

Maturity Withdrawal:

  • Eligibility: You can withdraw the entire PPF account balance after completing 15 years from opening the account.
  • Similar to partial withdrawal, you can either visit your branch and submit the withdrawal form or use the online option (if available)

How to Extend Tenure of IDBI Bank PPF

You can extend your IDBI Bank PPF account after it reaches the initial maturity of 15 years. You can choose to extend it in 5-year blocks.

To extend the tenure, you need to submit the extension request offline at a branch using "Form 4". Make sure to submit the request before or within a year after maturity. You need to be a resident Indian citizen at the time of extension, and you can deposit money within the annual limit. The good news is that the interest you earn during the extension period remains tax-free, making it easy to continue investing.

How to Open a PPF Account in IDBI Bank

IDBI Bank PPF account opening follows a simple procedure. To initiate the process, you can easily follow these steps:

  • Log in to your IDBI Internet banking account using your credentials.
  • Complete the IDBI Bank PPF Account opening form online.
  • Print the filled application form and present it at your chosen IDBI Branch.
  • After submitting the payment and the hard copy of your online application, the bank will conduct a verification process to activate your PPF account.

How to Deposit Money in IDBI PPF Account

Investors must deposit annually to the PPF account to keep it active. Failing to invest for even one year results in the account becoming dormant or inactive. Depositors can contribute money in various ways: directly from their IDBI Bank account, through online transfers from another bank, or by paying in cash, cheque, or demand draft. They can make one-time payments or pay in installments. However, there are limits to installment payments: no more than 2 in any month or 12 in a year.

How to Transfer IDBI Bank PPF Account

Investors can transfer their PPF account to a different branch of IDBI Bank or a different bank altogether. To facilitate the seamless transfer of your IDBI Bank PPF (Public Provident Fund) account, follow the step-by-step instructions given below:

Within IDBI Bank:

  • Transfer to another IDBI Bank branch in the same or different city.
  • Download and complete the "PPF Transfer Application" form, attach your passbook or statement, and submit it to your current branch.
  • The branch will process the transfer and inform you upon completion.

To Another Bank:

  • Transfer your PPF account to another bank or post office.
  • Download and fill out the "PPF Transfer Application" form, attach your passbook or statement, and submit it to your current IDBI Bank branch.
  • The new bank will initiate the transfer process, which usually takes several weeks and involves communication between both banks.

Ways to Download IDBI PPF Account Statement

Investors can easily access the IDBI Bank PPF account statement by logging into your Net Banking account. The option to download your PPF account statement is readily available. This gives the investors a convenient way to review their financial activities and check the IDBI Bank PPF account balance whenever needed.

Check PPF Accounts from other banks here:

Axis Bank PPF Account Bank of India PPF Account
Indian Bank PPF Account IDFC PPF Account
Union Bank PPF Account UCO Bank PPF Account
IOB PPF Account Bank of Maharashtra PPF Account

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Frequently Asked Questions

An IDBI PPF account is a Public Provident Fund account offered by IDBI Bank. It is a long-term savings instrument with tax benefits.

Any Indian citizen can open a PPF account with IDBI, either individually or on behalf of a minor, but not on a joint basis.

No, IDBI does not allow joint PPF accounts; only individual and minor accounts are permitted.

The minimum amount required to open a PPF account with IDBI is Rs. 500.

The maximum limit for depositing money in an IDBI PPF account is Rs. 1.5 lakhs per financial year.

Withdrawals from an IDBI PPF account are permitted from the 7th financial year, with partial withdrawals allowed subject to specific conditions.

Yes, the interest earned on an IDBI PPF account is tax-free.

Yes, you can transfer your existing PPF account from another bank to IDBI, following the proper procedure and documentation.

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