PNB PPF Account: Interest Rate, How to Open, Eligibility & Withdrawal

PPF or Public Provident Fund is a low risk, Government of India backed, tax saver investment that is suitable for various investor groups including conservative investors who prefer guaranteed returns.

PPF comes under the EEE (Exempt-Exempt-Exempt) category of tax payment which implies that PPF account deposits, interest and returns, all are exempt from taxes. At present, Indian residents can open and operate PPF account with various public sector banks in India including Punjab National Bank (PNB) as well as top private sector banks and post offices.

PPF Interest Rates FY 2025-26

PNB PPF account interest rate may change from one quarter to another as per decisions made by the Finance Ministry. The interest rate available on PPF account of PNB for Q2 (July-September) FY2025-26 has been set at 7.1%.

The following are historical interest rates of PPF accounts held with Punjab National Bank* :

Period	Interest Rates
April to June 2025	7.1%
January to March 2025	7.1%
October to December 2024	7.1%
July to September 2024	7.1%
April to June 2024	7.1%
January to March 2024	7.1%
October to December 2023	7.1%
July to September 2023	7.1%
April to June 2023	7.1%
January to March 2023	7.1%
October to December 2022	7.1%
July to September 2022	7.1%
April to June 2022	7.1%
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%

*Punjab National Bank PPF account balance is compounded annually.

PPF Calculator – PPF Interest Rate, Loan, Maturity & withdrawal Calculator

PNB PPF Account Opening Procedure

At present, PNB does not provide the option of opening a PPF account online and the available option is the offline route. The paper-based process of opening a PPF account includes the following steps:

• Fill out Form A and submit the completely filled out form at any branch of Punjab National Bank
• Attach key documents required as part of the PNB PPF Account opening process such as Government issued ID proof – Aadhaar, PAN, etc. and/or address proof documents such as recent utility/phone bill
• You will also have to fill out a deposit slip to make the initial deposit for PNB PPF account opening
• Do remember to carry the original documents for verification and the submitted documents need to be self-attested

Subsequently, when the account is open, the bank will print a PPF passbook which will contain details such as PPF account number, nominee, credit/debit if PPF funds, balance, branch code, etc. You can get this passbook updated whenever necessary from a nearby PNB Bank branch.  

Eligibility Criteria

The eligibility criteria for opening a PNB Bank PPF Account are as follows:

• Resident Indians 18 years of age or more can open a PNB PPF Account
• Parents/guardians can open a PPF account on behalf of a minor child
• Only one PPF account allowed per person in any bank/post office also joint holdings not allowed
• Non-resident Indians (NRIs) cannot open a PNB PPF account. In case an individual who is already operating a PNB PPF account becomes an NRI before account maturity, he/she can continue with the account until maturity date on a non-repatriation basis

Features of PNB PPF Account

• A maturity period of 15 years from account opening date is applicable to PNB PPF Account
• After completion of the 15 year period, extension in blocks of 5 years is allowed if a request is made within 1 year from the maturity date
• The minimum investment required to keep a PNB Bank PPF Account active is Rs. 500/annum, maximum investment allowed in the account in a year is Rs. 1.5 lakhs/annum
• Subscribers can set up online standing instruction through net banking for monthly contribution (max. 12 annually)

PNB PPF Account Loan/ Withdrawal Rules

PNB PPF subscribers can opt for a loan against PPF account balance subject to following terms and conditions :

• Maximum loan amount equal to 25% of PNB PPF account balance at the end of the first year is allowed after completion of 3 years from account opening date
• PNB PPF loan repayment tenure is 36 months with an interest rate equal to 2% + applicable PPF account interest rate
• Repayment of PPF loan can be made using either lump sum or instalment payments
• Withdrawal from PNB PPF account is allowed from the 7th year since account opening
• The amount of such withdrawal equals lower among – 50% of PPF account balance at the end of the preceding year or 50% of PPF account balance at the end of the 4th year immediately preceding the year in which amount is being withdrawn
• In case the PPF account has already matured and been extended, maximum withdrawal allowed equals 60% of the account balance at the start of the extension period