Public Provident Fund (PPF) is an excellent investment option for general investors. It is currently offering interest at the rate of 7.9% in the October to December 2019 quarter, which is much higher than the fixed deposits. Investment in PPF is very safe and it also guarantees returns. Along with this, you also get tax benefits by investing in PPF. If you invest in PPF, you can avail tax benefits of up to Rs 1.5 lakh per year under Section 80C of the Income Tax Act.
Apart from this, the interest received in PPF and the amount received on maturity is tax free. Also, very few people know that you can also take a loan on PPF. In loans taken on PPF, only 2% more is charged than the rate of interest received in PPF investment. You can avail this facility of PPF from the third year of investment to the sixth year. The interest rates of loans taken on PPF are lower than the rates of personal loans and credit cards. Because personal loan rates range from 14–22% in a year, credit card rates can be around 24–36% in a year. But loan rates on PPF are up to 10%.
Along with this, there are many benefits of investing in PPF, but people face problems when they have to shift from one city to another due to job or any other reason and they want to transfer their PPF account due to convenience. . So through this article, we are going to give you information about how to transfer PPF account.
Keep in mind while transferring PPF account
People often change their city for employment opportunities and better lifestyles. In such a situation, if you have invested in PPF, then your account will have to be shifted to your city of residence, otherwise you will face problems in investing money in it. In such a situation you need not worry, as PPF account can be transferred to bank branches and post offices anywhere in India, so that it can be operated at the convenience of the customer. You can transfer your PPF account keeping in mind the following points –
Prefer to transfer post office PPF account to bank
If you have a PPF account at the post office, then you will have to go to the post office to deposit it and complete the further process after standing in queue with the people who have your number, but if your PPF account is in a public or private sector bank If it is in, then you can deposit amount online through NEFT. If you want to invest in PPF, then you have to make ECS mandate with your bank and you can debit money from your account on a specific date. You can open PPF account in HDFC Bank, Axis Bank, ICICI Bank, BoB or any other public and private sector bank through online. If you are transferring your PPF account to another city, it would make sense to transfer the PPF account of your post office to the bank. Because you will get more facilities in the bank than in the post office.
How to transfer a PPF account?
You can transfer PPF account through following steps –
- If you want to shift your post office PPF account to a bank, you will need to submit a transfer application to request it.
- For transferring the account, a request has to be made through the application at the bank or post office along with the original PPF passbook.
- Today, in the application, write the full address of the branch where you want to transfer your PPF account.
- Keep a photocopy of the PPF passbook as a record of the previous transaction.
- After applying, take PPF transfer receipt from post office or bank.
- Your transfer application form, existing PPF passbook, nomination details and bank dues, check or demand draft etc. will be deposited by your existing bank branch or post office in the new branch, which you have mentioned in your application.
- You will have to open a new PPF account at the new bank branch.
- Complete the KYC process by submitting a copy of PAN card number, voter card, electricity bill, driving license or passport.
- The PPF transfer process takes about a month. If you want to transfer your PPF account to a new branch of the same bank which already has your account, then the whole process takes seven days.
