Customer PF Acc

Customer PF Acc

Provident fund saving is an investment scheme among investors courtesy its multiple investor-friendly features and associated benefits. It is a long-term investment scheme popular among individuals who want to earn high but are also looking for stable returns

Customer PF Acc
6.03 %
Total Interest Rate

Last Updated Date: May 17, 2022

Bank of Kathmandu Ltd

Bank of Kathmandu is a commercial bank in Nepal that merged with Lumbini Bank. Bank of Kathmandu is currently trading in Nepal Stock Exchange with symbol BOKL. BOK has provided a dividend return of 25 percent in fiscal year 2074/75. Bank of Kathmandu Limited has appointed Nabil Investment Banking Limited as it’s share registrar. Bank of Kathmandu Limited has become a notable name in the Nepalese banking scenario today with a high ranking performance.Bank of Kathmandu Limited today has created a milestone in the Nepalese banking sector by being among the few commercial banks which is entirely managed by Nepalese professionals and owned by the general public and by becoming one of the largest private sector commercial banks in the country in terms of capital base, number of branch locations, ATM networks and customer base.

Customer PF Acc

REQUIRED DOCUMENTS

  • Citizenship
  • PP sized photo
  • PAN Number of the Proprietor/Partner/Director.
  • Proof of address such as the Electricity Bill or Water Bill or Telephone Bill of the Registered Office (not older than 2 months).
  • Digital Signature of the Proprietor/Partner/Director.
  • Bank Statement of Entity.

What Is a Provident Fund Saving ?

A provident fund is a compulsory, government-managed retirement savings scheme used in Singapore, India, and other developing countries. In some ways, these funds resemble a hybrid and Social Security used in the Nepal. They also share some traits with employer-provided pension funds. Workers give a portion of their salaries to the provident fund and employers must contribute on behalf of their employees. The money in the fund is then held and managed by the government, and eventually withdrawn by retirees or, in certain countries, their surviving families. In some cases, the fund also pays out to the disabled who cannot work. Public provident fund is a popular investment scheme among investors courtesy its multiple investor-friendly features and associated benefits. It is a long-term investment scheme popular among individuals who want to earn high but are also looking for stable returns. Safety of the principal amount is the prime target of individuals opening a PPF account.

Why open a PPF account?

Public provident fund scheme is ideal for individuals with a low risk appetite. Since this plan is mandated by the government, it is backed up with guaranteed returns to protect the financial needs of the masses in India. Further, invested funds in the PPF account are not market-linked. Investors can also undertake the public provident fund regime to diversify their financial and investment portfolio. At times of downswing of the business cycle, PPF accounts can help with preserving your capital.

Features Of a PPF Account

The key characteristics of a public provident fund scheme can be listed as follows –

Investment tenure

A PPF account has a lock-in period of 15 years on investment, before which funds cannot be withdrawn completely. An investor can choose to extend this tenure by 5 years after lock-in period is over if required.

Principal amount

A minimum of Rs. 500 and a maximum of Rs. 1.5 Lakh can be invested in a provident fund scheme annually. This investment can be undertaken in a lumpsum or installment basis. However, an individual is eligible for only 12 instalments into a PPF account in one financial year. Investment in a PPF account has to be made every year to ensure that the account remains active.

Loan against investment

Public provident funds provide the benefit of availing loans against the investment amount. However, the loan will only be granted if it is taken at any time from the beginning of 3rd year till the end of the 6th year from the date of activation of the account. Only 25% or less of the total amount available in the account can be claimed for this purpose. You will have to repay the loan in 36 months.

 

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