BOB PPF Interest Rate 2022 – Bank of Baroda provides the facility of opening a Public Provident Fund (PPF) account to their customers. All the investors who want to invest their money should check the PPF Interest rate of BOB.
Bank of Baroda PPF interest rate 2022 is determined for every quarter by the Finance Ministry, Government of India. There are several cases in which there is a change in the BOB PPF Interest rate which are mentioned below.
What is BOB PPF Interest Rate 2022?
PPF Interest rate of Bank of Baroda means the certain percentage of the balance amount which is given the investor at the end of every financial year. The Bank of Baroda 2022 PPF Interest rate is a type of compound interest which means that the interest is calculated on principal amount and previously earned interest, instead of considering the principal amount only.
Previous year BOB PPF Account Interest Rate
From the past few years, the PPF rate of interest in Bank of Baroda has been fluctuating between 7 to 8%. This rate is subject to change every quarter of the financial year. For the previous few years, the Bank of Baroda PPF Interest rate was near 8%, but the previous year, it fell down to 7.1%.
| Period | Interest Rate |
| April 2020 to Present | 7.1% |
| July 2019 to March 2020 | 7.9% |
| January 2019 to June 2019 | 8.0% |
| July 2018 to December 2018 | 7.8% |
| April 2018 to June 2018 | 7.9% |
Calculate Returns using BOB PPF Interest rate
The investors who have opened their PPF account in Bank of Baroda can easily calculate the return which they will get at the end of the PPF maturity. There are many calculators online including one on the official website of Bank of Baroda. Check the Bank of Baroda PPF calculator by clicking here.
However, investors can calculate the maturity amount using simple formula as given below:
$latex A = P\left [ \frac{\left ( 1+r \right )^{n}+1}{r} \right ]$
Where,
- A = Final Amount after completion of PPF tenure
- P = Total principal amount invested every year in the PPF account
- r = Bank of Baroda PPF Interest rate
- n = Number of years investing (15 years is a minimum tenure)
BOB PPF Interest rate in case of Premature Withdrawal
From the 6th financial year, the investor is eligible to partially withdraw the amount from his/her PPF account. The rest amount keeps earning the current interest rate.
In premature closure, the investor will be charged 1% as a penalty, from the date of account opening. For example, the current PPF Interest rate in BOB is 7.1%, if the investor closes the account prematurely, then he/she will get only 6.1% interest on it rather than the normal interest rate i.e. 7.1%.
BOB 2022 PPF Interest rate for Maturity Extension
At the end of the 15 year lock-in period, if the investor wants to continue with his/her PPF account, then, they can extend the maturity period with either new contributions or without new contributions.
In case of new contribution, the investor will be investing the money annually in their account for the next 5 years and they will get the current BOB interest rate 2022.
But, in case of maturity extension without new contribution, the investor does not have to make any new investment, but only the amount at completion of 15 years will keep receiving BOB PPF Interest amount.
BOB PPF Interest rate for loans
Investors who want to take a loan against their BOB PPF account can apply for the loan after the first financial year till the end of fifth financial year. BOB Bank PPF interest rate for loans can be checked with the nearest Bank of Baroda branch.
The Interest rate for loans will be 1% and investors will not get any interest on the loan amount. So they will lost 7.1% interest earning on loan amount and will have to pay 1% interest on their loan amount. Thus, the actual interest rate will be 8.1%.