How To Transfer A PPF Account Across Banks Or Post Offices?
The Public Provident Fund (PPF) is one of the most preferred investment avenues among the risk-averse investors. Under section 80C of the income tax act, PPF counts for a deduction and the maturity benefits completely free from tax. It therefore retains the tax status of Exempt-Exempt-Exempt (EEE). Holdings in certain public sector and selective private banks, as well as post offices, can be made. And furthermore, in search of better employment, many citizens move across different cities. This endless versatility implies you're still going to need to transfer your savings to your new residence city. By following below covered procedure you can conveniently transfer your ppf account without losing the accrued interest.
Managing your PPF account
You have to visit the post office to deposit an amount in the PPF account and linger in a lengthy waiting line, which can be an inconvenience for you. That being said, if you have a PPF account with a bank, you can make a deposit electronically via the National Electronic Funds Transfer (NEFT). Depositors can also maintain an ECS (electronic clearing system) with which the bank is allowed to debit the account on a particular date in order to contribute to the PPF account. Depositors who have a PPF account with a post office do not have access to these services. Certain banks, like the State Bank of India, HDFC Bank, Axis Bank, ICICI Bank and Baroda Bank, make online PPF deposits. Therefore, transferring your PPF account from the post office to a bank and using the improved facilities on request might be a wise choice. If you migrate to another city considering your employment, and if not happy with the service facilities of the bank, switch to a bigger house in another place so that you do not access the branch, and so on., then it is a reasonable idea to transfer your account to another branch or bank or post office.
Transfer your PPF account
If you want to transfer your PPF account from a post office to a bank or across bank to bank along with your current PPF passbook, you need to submit a transfer application form at your current post office/bank branch. Specify the address of the bank branch to which you want to transfer your PPF account in the application form. If you want to transfer your PPF account from a post office to a bank or from one bank to the other, along with your current PPF passbook, you need to submit a transfer application form at your current post office/bank branch. Specify the address of the bank branch to which you want to transfer your PPF account in the application form. Keep a photocopy of it for a proof of past transactions when submitting your PPF passbook to your current post office or bank branch. Also, request the receipt from the post office/bank of the transfer order.
After which, your transfer application form, existing PPF passbook, a verified copy of the account, a copy of your signatures, nomination info, a cheque or demand draft with remaining balance will be forwarded to the bank by the current post office/branch that is defined in the application form. You will be notified after the new bank branch approves your transfer request for the PPF account with the documents. In case if there is any change to be made you need to submit a new PPF account opening form and nomination specifics at the bank branch at which you are going to transfer. The know-your-customer (KYC) process must also be done by you. Submit your PAN copy, proof of address, proof of identity, to complete the KYC-authentication successfully. To transfer your PPF account from the preferred bank or post office it may take up to a month. That being said, the procedure takes just up to seven working days if you wish to stay investing in PPF in the same bank and only prefer to switch the branch to a different location to which you are relocating. All you need to do is submit an application form to the current branch appealing for a branch change.
Points to note
- The child on whose behalf the account is opened does not need to contact the bank/post office only if the account is managed by himself or herself.
- Although the current PPF account opening form has been submitted by you to the bank, the account transfer is deemed to be an ongoing account.
- Also, after transferring the account, you will be liable for withdrawal and loan facilities according to PPF guidelines.
- A new PPF passbook is issued by the new branch owing to the transfer process. Check if your fresh PPF passbook is indicating the appropriate outstanding balance in that instance.