A Bank of Baroda PPF Account is a secure and long-term investment option backed by the government. It offers tax-free returns and tax benefits under Section 80C. The account provides a 15-year lock-in period and an attractive interest rate. It is ideal for retirement planning and wealth creation. You can also avail of partial withdrawals and loans after a few years. With online access and nationwide availability, a PPF with Bank of Baroda is a convenient way to grow your savings.
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Investment Plans
Generate wealthEarn 1 Cr# in maturity with Zero LTCG tax¶
Double tax savings^On premiums (under 80C) and on maturity (under
10(10D))
A Bank of Baroda PPF Account is a secure and government-backed savings option that helps individuals build long-term wealth while enjoying tax benefits. It offers an attractive interest rate, which is compounded annually, ensuring tax-free returns. Individuals can invest between ₹500 and ₹1.5 lakh per year with flexible deposit options.
The BoB PPF Account has a tenure of 15 years, which can be extended in blocks of five years. Partial withdrawals are allowed from the seventh year, and loans can be availed from the third year. Deposits made in this account qualify for tax deductions under Section 80C of the Income Tax Act.
Features of Bank of Baroda PPF Account
Features
Details
Minimum Deposit
- ₹500/- per year (mandatory to keep the account active).
Maximum Deposit
- ₹1,50,000/- per year (in multiples of ₹50/-).
Deposit Mode
- Can be made in a lump sum or multiple installments.
Maturity Period
- 15 years, extendable in 5-year blocks any number of times.
Account Transfer
- Can be transferred between banks, post offices, or branches. - Cannot be transferred between individuals. - If the account holder passes away, the nominee cannot continue the account.
Loan Facility
- Available after 1 year but before 5 years from the end of the year of opening. - Maximum loan amount: 25% of the balance at the end of the second preceding year. - Minimum ₹500/- must be deposited yearly to keep the account active.
Joint Account
- Not allowed under this scheme.
Discontinued Accounts
- If no deposit is made, the account becomes discontinued. - Cannot be closed before maturity. - Can be reactivated by depositing ₹500/- plus ₹50/- for each year of default.
Tax Benefits
- Investments qualify for Section 80C deduction (up to ₹1.5 lakh per year). - Interest earned and maturity amount are tax-free.
Tax on Extended Accounts
- If the account is not officially extended after 15 years, deposits made beyond this period will not earn tax-free interest.
Minor Account Tax Rule
- Deposits in a minor’s PPF account are clubbed with the guardian’s account for the ₹1.5 lakh annual limit.
Account Closure on Death
- The nominee/legal heir cannot continue the account; it must be closed.
Excess Deposits
- Deposits exceeding ₹1.5 lakh per year are refunded without interest and do not qualify for tax benefits.
PPF Interest Rate Bank of Baroda
The Bank of Baroda PPF Account interest rate is decided by the government every quarter and is currently 7.1% per annum.
The interest is compounded annually, helping the investment grow over time.
It is calculated on the lowest balance between the 5th and the last day of each month.
For cheque deposits, interest is considered from the date of realisation.
Bank of Baroda PPF Account Calculator
The Bank of Baroda PPF Calculator is a simple tool to estimate returns on your Public Provident Fund (PPF) investment. By entering the deposit amount, tenure, and interest rate, you can calculate the maturity value and tax-free returns. This calculator helps in better financial planning by providing accurate results for your savings growth.
Eligibility Criteria to Open a PPF Account in Bank of Baroda
The key conditions to become eligible for opening a BOB PPF account are listed below:
Any adult can open a PPF account in their name.
A guardian can open an account for a minor or a person with an unsound mind.
Irregular Accounts: Minor PPF accounts opened by grandparents or without a legal guardian are considered ‘Irregular’ and earn Post Office Savings Account (PoSA) interest.
How to Open a PPF Account in Bank of Baroda Online?
You can follow these steps to open a Bank of Baroda PPF account online:
New Customers of Bank of Baroda:
New customers who want to open a PPF account at the Bank of Baroda can visit their nearest BOB branch with the necessary KYC documents.
Existing Customers of Bank of Baroda:
Log in to Bob World: Access the Bank of Baroda website or app and log into your account on BoB World.
Select 'Open PPF Account': Navigate to the 'Open PPF Account' section within the app.
Fill in Details: Enter required details such as personal information and nominee details.
Submit Documents: Upload necessary KYC documents like proof of identity and address.
Set Standing Instructions: Initiate standing instructions for automatic deposits, according to your convenience.
Confirm and Open Account: Review and confirm the information, then submit to open your PPF account.
Bank of Baroda PPF Withdrawal Rules
The account holder can withdraw funds after five years from the end of the year in which the account was opened.
The maximum amount that can be withdrawn is 50% of the balance at the end of the fourth year before the withdrawal request or the previous year, whichever is lower.
Any outstanding loan and interest must be cleared before making a withdrawal.
Withdrawals can be made only once a year.
A guardian can withdraw funds for the benefit of a minor or a person of unsound mind.
If the account is extended beyond 15 years, withdrawals during the five-year block period cannot exceed 60% of the balance at the start of the block period.
Premature Closure Rules of Bank of Baroda PPF Account
Premature closure of the account is allowed only after five years from the end of the year in which the account was opened.
It is permitted under specific conditions:
If the account holder, spouse, or dependent family member is suffering from a life-threatening illness (supporting medical documents required).
If the account holder or their dependent children need funds for higher education (admission proof required).
If the account holder’s residency status changes (passport, visa, or income tax return required).
On premature closure, the interest rate applicable will be 1% lower than the rate credited to the account over the years.
Loan Facility under BOB PPF Account
The account holder can apply for a loan after one year from the end of the year in which the first deposit was made but before the completion of five years.
The maximum loan amount allowed is 25% of the balance available at the end of the second year preceding the year of loan application.
A guardian can apply for a loan on behalf of a minor or a person of unsound mind.
A new loan cannot be taken until the previous loan, along with interest, is fully repaid.
The loan must be repaid within 36 months, either in one lump sum or in installments.
If the loan is repaid on time, the interest rate is 1% per annum. If not, the interest increases to 6% per annum.
Any unpaid interest will be debited to the account at the end of each year.
In case of the account holder’s death, the nominee or legal heir must repay the outstanding loan and interest before closing the account.
Documents Required for Bank of Baroda PPF Account
Accepted Documents for Identity & Address Proof:
Passport
Driving License
Voter ID
PAN Card
NREGA Job Card (Signed by State Govt. Officer)
National Population Register Letter (With Name & Address)
For Minors:
Proof of Date of Birth
Guardian’s Details (Natural/Legal) with KYC Documents
Bank of Baroda PPF Account Benefits
The key benefits offered by the BOB PPF account are as follows:
Tax-Free Interest: Interest earned on the PPF account is completely exempt from income tax.
Nomination Facility: Account holders can nominate a beneficiary for easy fund transfer.
Account Extension: The PPF account can be extended beyond 15 years in blocks of 5 years.
Tax Rebate: Contributions qualify for tax deductions under Section 80C of the Income Tax Act, up to ₹1.5 lakh per year.
Conclusion
The Bank of Baroda PPF account is a good tax-saving investment option for long-term savings. It offers a good interest rate, tax benefits under Section 80C, and the security of government backing. With a low minimum investment and flexible deposit options, it is easy to open and maintain. This account helps you grow your savings steadily while enjoying tax-free returns, making it a smart choice for building a secure financial future.
FAQS
What is a Bank of Baroda PPF Account?
A Bank of Baroda PPF Account is a long-term savings scheme offering tax benefits under Section 80C. It helps you save for retirement with guaranteed returns and interest.
What is the minimum deposit for a Bank of Baroda PPF Account?
The minimum deposit for a Bank of Baroda PPF Account is ₹500 per year. You can deposit in multiples of ₹50.
What is the maximum deposit allowed in a Bank of Baroda PPF Account?
The maximum deposit allowed in a Bank of Baroda PPF Account is ₹1.5 lakh per financial year. This can be deposited in one or more instalments.
What is the interest rate on a Bank of Baroda PPF Account?
The interest rate on a Bank of Baroda PPF Account is 7.1% per annum, compounded annually, as of 2025.
What is the maturity period of a Bank of Baroda PPF Account?
The maturity period of a Bank of Baroda PPF Account is 15 years. It can be extended in blocks of 5 years after maturity.
˜Top plans are based on annualized premium, for bookings made through https://www.policybazaar.com in FY 25. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
Disclaimer: #The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: ₹1,05,02,174 @ CAGR 8%; ₹50,45,591 @ CAGR 4%. *Tax benefits and savings are subject to changes in tax laws. All plans listed here are of insurance companies’ funds.
Past 10 Years' annualised returns as on 01-09-2025
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
*All savings are provided by the insurer as per the IRDAI approved insurance plan.
Tax benefit is subject to changes in tax laws. Standard T&C Apply
++Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.
**Returns are based on past 10 years’ fund performance data (Fund Data Source: Value Research).
Generate wealth Earn 1 Cr# in maturity with Zero LTCG tax¶
Double tax savings^ On premiums (under 80C) and on maturity (under 10(10D))
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