The Public Provident Fund Scheme was launched in 1968 by the National Savings Organization to cash in individual savings. The scheme aimed to enable individuals to get attractive returns along with income tax benefits.
Here’s what you need to know about opening a PPF account if you have an account in UCO Bank.
=> An account holder can open a PPF account either in his or her own name or in the name of a minor. However, a Hindu Undivided Family is not allowed to open a PPF account.
=> The facility is not extended to NRI’s as well.
=> One can open a PPF account with a minimum limit of Rs 500, however, one has to deposit at least Rs 500 during the year. The maximum amount one can deposit in a PPF account is Rs 1,50,000 per annum, any amount above that will not yield any interest to the subscriber.
=> While a PPF account is opened for a maximum duration of 15 years but the duration can be extended by one year after maturity or in blocks of five years consecutively.
=> The interest earned on a PPF account is at the rate of 7.8%, as fixed by the Union Finance Ministry.
=> One can even seek loans against a PPF account , however the loan amount would depend on how old the account is and the balance at a specified point of time.
To open an account one would have to visit the nearest branch of UCO Bank and pay the subscription amount either in cash or via cheque at the bank.