PPF transfer: Step-by-step guide on how to shift your Public Provident Fund
Public Provident Fund, or PPF, is one of the guaranteed-return long-term instruments that has enjoyed generations of trust and fundamental changes in the character of the Indian investment scene. It is an appropriate choice for conservative investors who can be both young and old, employed and retirees.
Kolkata: Public Provident Fund, or PPF, is one of the guaranteed-return long-term instruments that has enjoyed generations of trust and fundamental changes in the character of the Indian investment scene. However, in this age of high job mobility, people have to travel from one city to another from one end of the country to another. If a PPF subscriber changes locations that are far apart, how can one transfer one's PPF account without losing any benefit?
PPF offers an annual rate of interest of 7.1% now. It also offers full income tax exemption on capital invested, interest accrued and total maturity amount. It can be extended for blocks of five years beyond the initial lock-in period of five years so that one can accumulate a really big corpus. PPF enjoys sovereign guarantee which makes it the most secure of all investment instruments.
How to transfer a PPF account
There are provisions in the rules to transfer a PPF account between the different branches of the same bank, different branches of different banks, from a post office to a bank and from a bank to a post office. In short, various permutations and combinations are possible.
ONE: One should go to the current bank branch or post office branch. One should take the PPF passbook with him/her.
TWO: One needs to submit an application stating the request to transfer the account.
THREE: The application should state the full address of the bank branch or post office where one wants to shift the account.
FOUR: The current branch will get the transfer process initiated. One must take a receipt of the application for shifting the account.
FIVE: The applicant will get a notification once the new bank or post office branch gets hold of the documents his/her old bank/post office send there.
SIX: There is a KYC process the applicant has to comply with. Such documents (PAN, identity proof) have to be submitted.
SEVEN: If there is a change inn address, the new bank/post office can request account holder/applicant to fill up a new account opening form.
One very important thing to remember is that a PPF account can be transferred as described above but not between two individuals. Even if an account holder expires. his/her legal heir cannot continue the account in his/her name. He/she can open a new one in his/her name.