PPF is an excellent mode of small saving in India. A lot of people invest in PPF to save on taxes. But every one have the question how to transfer PPF Account Post Office Or Bank. However, there are times when the PPF account holders have to transfer their account from one branch to the other, from one bank to the other and from a bank to post office or vice versa. PPF account is absolutely transferrable and the process is quick and simple.
Transfer PPF Account Post Office Or Bank
There are lots of concerns among account holders relating to transferability of PPF accounts. Some of the common questions are:
- Is PPF account transferrable?
- Does transferring PPF account mean that you have to close the previous account and open a fresh account in the new bank/branch/post office?
- How To Transfer PPF Account Post Office Or Bank?
- What is the duration of process in transferring PPF account?
- Will you lose some interest if you transfer your account from one place to another?
We would throw light on each of such questions in this article.
Why would you require Transfer PPF Account Post Office Or Bank
There could be a number of reasons due to which you may like to Transfer PPF Account Post Office Or Bank . Some of them could be:
- Change of City
There are instances when your PPF account was opened by your parents and now you are moving to a different location due to higher studies or job. In that case, you would like to transfer your PPF account to the new location.
Even after marriages, girls need to change their location and in that case too, PPF account has to be transferred. Just because we change our locations does not mean that we would close the previous accounts and open a new one. The solution to all this location change is simply to transfer the account. This happens in case of PPF account as well.
- From Post Office Branch to Banks
When you plan to start an investment, the best practice at that time is to consult friends and relatives as to how they did it and get started. It is only when we run through the operations of that investment that we know what are the finer aspects and what are the best practices we follow.
Likewise, if you had come to know that post offices open PPF account with just Rs 500, you would walk up to any post office and get the account opened. It is only after you start operating the account is when you come to know that had you opened the account in any good bank, you would have go better services.
This most of the times is one of the reasons why people want to transfer their account from post offices to banks.
The process of Transfer PPF Account Post Office Or Bank
PPF account can be transferred from one bank to another, from post office to bank and vice versa. The process for Transfer PPF Account Post Office Or Bank is simple and uniform for any bank or post office. For convenience, the previous account is closed and a new one is opened at the new branch, however, the new account is a continuation of the previous one and account holder does not loose on any interest. Here is what you need to do in order to transfer your PPF Account:
- Before you visit your new branch, ensure that you have updated your current passbook and it shows the latest deposits and interest accrued.
- For transfer of your account, you need to make an application at your current branch and request that your account be transferred to the new branch, whatever you wish.
- If you have a PPF account in post office, you would require Form SB10(b) and if you have your account in any bank, just an application letter would do. You need to specify your account details including name and address appropriately on the application form.
- The authorities would verify your details and signature and then process the transfer of account. Your existing account details and documents would be sent to the branch where you wish to get your new account.
- A cheque or DD of your outstanding balance in your PPF account would also be sent to the desired new branch.
- Once the new branch receives the documents and outstanding payment from your previous branch, it would start with the account opening process.
- The new branch would ask for your fresh documents and you would be advised to open a fresh account and thus fill a fresh form. It is just that the outstanding payment from your previous account would act as an opening balance at the new branch.
- Fresh set of KYC documents would be required from you and the new branch would issue a fresh passbook to you that would include the previous balance as the credit balance in your account.
- Henceforth, you can continue with your PPF account the way you have been doing so far, earlier.
- This is the time, when you can make fresh nominations as well as change your nominations. For more information you can read the article Nominations In Public Provident Fund
It is always advisable to take a photocopy of the passbook of your previous account before submitting it. This would be required by you for filling your taxes for the current year and for other transactions and record purposes.
Duration of Transfer PPF Account Post Office Or Bank
In practical terms, the entire transfer process takes around 2 to 3 weeks, if everything else is in place. You should ideally follow up with your old and new branch to make sure that things are not blocked up at any end.
Is interest lost during the PPF Account Transfer?
The answer to this doubt is quite simple and a straight NO. You don’t lose any interest if you Transfer PPF Account Post Office Or Bank. However, there have been cases where people have complained of losing their interest during the process of account transfer.
Actually, this does not happen due to the policy but due to negligence. Hence, make sure that you update your passbook with all the interest accrued till date. For more information you can read the article Interest Rate in Public Provident Fund Account
Last but not the least, there are ways through which you can complaint to the authorities if the interest is not paid to your account or interest is lost during the transfer process. You can email, write or call to the bank/post office authorities or resort to supreme authorities like Banking Ombudsman or file a Right to Information.
In our article Transfer PPF Account Post Office Or Bank we have to discuss about PPf account transfer. If you have any question yu can read our article Public Provident Fund PPF FAQ or send us comment.