How to transfer the PPF Account from Post office to Bank account?

How to transfer the PPF Account from Post office to Bank account?

PPF is one of the best retirement saving schemes which provides highest tax free interest rates for 15 years. This scheme was introduced in 1968 by the ministry of finance.  It is primarily an account that can be opened in any authorized bank or post office. However, many of you would have regretted if you opened a PPF account in Post office as they still maintain accounts manually with passbook and not line. If you are thinking to transfer a PPF account from the Post office to the Bank Account, this article is for you. 

Features of the PPF account

If you are already familiar with PPF account, you can skip this section.

Some of the key features of Public Provident Fund (PPF) are given below.

Also Read: A to Z of Public Provident Fund, its features, pros and cons

• The interest rates are governed by the central government and declared on the annual basis generally. The interest is credited annually in the account. Currently the interest rates are 8.1% per annum. 
• The initial investment with which the account can be started is Rs. 100.
• The account is opened for tenure of 15 years.
• The amount deposited in the account can range between Rs. 500 to 1,50,000 per annum. The amount can be revised as per the government rules.
• It is compulsory to invest a minimum of amount in the account in order to keep it active. Failure may result in the inactivation of the account.
• The complete withdrawal of funds can be made only at maturity. However, partial premature withdrawals can be made subject to certain conditions.
• Only one PPF account can be maintained by an individual except for an account opened on behalf of a minor.
• As we know the PPF account can be opened in post offices and authorized banks too. But, these days, people prefer banks over post offices. The main reason behind it is that they want to access their account online through net banking. The balance of the PPF account can be checked and depositions can be made too in just a few clicks. And the best part is that although transferred, the account will be considered as the continuing account and the rules of operating would remain the same.
• If you can plan it well, you can get maximum interest on Public Provident Fund.

How to transfer the PPF Account from Post office to Bank account?

• The individual needs to approach the concerned post office where his/her  account is held. He/she is required to submit a form SB 10(b) to head post master. The documents that you need to take along with you are the photocopies of the existing PPF Account Passbook.
• You can download the form SB 10(b) at this link.
• The post office will process your application and send your original documents which include a nomination form, specimen signature, certified copy of the PPF account, and other relevant documents to the bank address in which you wish to transfer the account. The documents are also accompanied by a DD or cheque for the outstanding balance of the PPF account.
• When all the documents have been received by the bank branch, the customer needs to fill a fresh Form A- PPF account opening form, form E (nomination form) together with the original passbook from the post office. If he wishes to change the nominee, Form F is also to be filled. He is also required to submit a fresh document of KYC (Know Your Client) to the bank branch.
• Once the application is processed, the branch brings this point to the notice of the customer and he can collect his new passbook thereafter. This new PPF passbook will contain only new entries and all the old entries would be wiped off. Once the new account is in activation in the bank, you can access your account through net banking.

Also Read: How to transfer money from Bank account to PPF account online?

Conclusion: With the online net banking come in place, the individuals now want to avail the facility of making the payments online and checking the balances within minutes. It is quite trouble-free and time saving arrangement.

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Suresh

How to transfer PPF Account from Post office to Bank account

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Suresh KP

Founder at Myinvestmentideas.com

Suresh KP is the Founder of Myinvestmentideas. He is NISM Certified - Investment Adviser and NISM Certified - Research Analyst. He has been analyzing financial markets in the last 20 years.He can be reached at suresh@myinvestmentideas.com

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