Ways to transfer money from a bank account to PPF account online
While you are getting ready to file income tax returns for the previous year, you must be even planning to do tax saving for the current year by investing in various tax saving options like PPF. However, you must be worrying to go to the bank to transfer the amount to a PPF account every month. How to transfer money from your bank account to PPF Account online. What are the various ways where you can transfer the amount to a PPF account by sitting at your desktop/laptop?
3 Ways to transfer amounts from bank account to PPF account online
While Post office is not yet become online, PPF account can be opened with ICICI Bank, HDFC Bank and SBI. There are basically 3 ways where you can transfer money from your Savings bank account to PPF account online.
1) Transfer money through Internet banking account
- Login to your internet banking with your login and password
- Go to Payment section
- Click on Add third party payee
- Give your PPF Account number, IFSC Code of your bank account and submit
- You would get Payee confirmation message and code is sent to your mobile like any other third party payee addition.
- Confirm your payee
- Transfer amount from your bank account to your PPF account online
- The amount is transferred and the process is completed
- Note that if you have PPF and bank accounts with the same branch of the bank, this process is a little simpler.
- If your PPF account is with different branch, you may need to call customer support first and link your PPF account with your account before proceeding with the above steps.
- Some bank accounts would also give an error that it is your own account, hence you cannot add a third party payee. In such case, directly make online payment to your linked account instead of following the above steps.
2) Standard instructions to transfer money from a bank account to PPF Account
The second method is you can give standing instructions through your net banking section (upon request / new request mode) and ask to transfer the amount to your PPF account. This needs to be done for each and every transaction whenever you want to transfer money to your PPF account. This way is advantageous when you want to transfer a lump sum, especially when an employee gets yearly variable pay or bonus or performance bonus.
3) ECS Mandate to transfer money from a bank account to PPF account
This is a one time activity where you need to visit your bank and give an ECS mandate to transfer a fixed amount every month from your bank account to your PPF account. This is very simple to do and we do not even worry to transfer money every month. The amount would be deducted on a specific date every month from your bank account and deposited in your PPF account automatically. You just need to ensure sufficient funds are available in your bank account
Some FAQ’s about transferring money to your PPF Account online
- You can make/transfer maximum of 12 transactions in a financial year. Further transactions would get rejected. Hence plan it accordingly.
- You can transfer a maximum of Rs 1.5 Lakhs per PPF account. Any excess transferred beyond this would be returned back to your SB account.
- You can transfer the amount to your PPF account before 5th of every month to get interest for that month on such deposit
- You and your spouse can open 2 accounts, invest Rs 1.5 Lakhs per annum each for 15 years and can create wealth Rs 94 Lakhs (with interest rates of 8.7%). You can even get tax exemption u/s 80C. This is one of the Best Investment Plans for getting higher interest rates after Sukanya Samriddhi Account.
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Ways to transfer amounts from bank account to PPF account online