The Scheme offers an investment avenue with decent returns coupled with income tax benefits as below -

• Deposits upto Rs 1,50,000/- Lac qualify under Section-80C of I.T. Act
• Interest earned is completely free   from Income Tax.
• The interest rates are notified by Government of India from time to time.
• Easy liquidity by provisions of loan and withdrawal.
• PPF & SSA account opening/Deposit/Statement view is also available through PSB UniC.

The Salient features of the Scheme are as follows:

Eligibilty

Individuals in their own name as well as on behalf of a minor can open the account. The Non Residents Indians are not eligible to open account under PPF Scheme. The account can be opened in any branch of Punjab & Sind Bank. Those having General Provident Fund or Employee's Provident Fund can also open a Public Provident Fund.

Investment Limits

Any amount in multiple of Rs 100/- with a minimum Rs 500/- and maximum of Rs 1,50,000/-in a year in all the accounts taken together. A year for the purpose of Scheme means a financial Year. The subscriber should not deposit more than Rs.1,50,000 per annum as the excess amount will neither earn any interest nor will be eligible for rebate under Income Tax Act.

Duration of Scheme

Original duration is 15 years. Thereafter, on application by the subscriber, it can be extended for 1 or more blocks of 5 years each.

Rate of Interest

Interest will be paid on 31st March every year. Interest is calculated on the minimum balance between 5th day and end of the month. The interest rate arenotified by Government of India from time to time.

Loans and Withdrawals

Loans and withdrawals are permitted depending upon the age of the account and balances as on the specified dates.

Tax Benefits

Income Tax benefits are available under Sec 8OC of IT Act. Interest income is totally exempt from Income Tax.

Nomination

Nomination facility is available in the name of one or more persons. The shares of nominees may also be defined by the subscriber.

Transfer of Account

The account can be transferred to other branches/ other banks or Post Offices and vice versa upon request by the subscriber. The service is free of charges.