Link investor

How to transfer your PPF account and link it to a savings account

The Public Provident Fund (PPF) is an investment program offered by the government. It is very popular with investors because it falls under the EEA (exempt-exempt-exempt) tax category. This means that all deposits made, income generated from deposits and the corpus when withdrawn are all tax exempt. If you haven’t done your tax investments however, investing in the PPF might be an idea you can think about.
A person cannot have more than one account at the public provident fund. The PPF has a lock-up period of 15 years. After this time, you can extend your PPF in 5-year increments. This government program also allows parents to open a PPF account on behalf of their minor children and benefit from a tax exemption on deposits.
Steps for transfer PPF account to the savings account?
The simple process for transferring your public provident fund account to a savings account is shown below, although it may take a few weeks. Here’s what you need to do;
Not:
  1. Step 1

    Go to your existing bank branch with your PPF passbook and request the transfer. The request must contain the full address of the bank branch where you want to transfer the account.
  2. 2nd step

    Submit your old passbook to the existing bank.
  3. Step 3

    The bank will close your PPF account in their system and send some documents to the new bank branch. These include:
    • Certified true copy of account
    • Original account application form
    • Sample of your signatures
    • A check or DD of the outstanding balance
    • Nomination form
    • Existing PPF booklet
    • Customer’s PPF transfer request and acknowledgment of receipt from the bank
  4. Step 4

    The new bank branch will inform you after receiving the documents mentioned above. Next, you will need to submit a new account opening form with all KYC documents. The new bank will then issue you a new passbook.

Steps for link PPF account to the savings account
To allow you to invest regularly in your PPF account, you can also link it to your savings account. Here’s how to do it;
Step 1: The process is the same as adding a third party beneficiary
2nd step: Open your net banking and add your PPF account number and your IFSC code.
Step 3: You can choose digital funds transfer once you have added the account
Step 4: You can even choose an ECS (Electronic Clearing Mandate) to make monthly deposits to your PPF account.
Step 5: The account balance between the 5th and the end of each month is taken into account when calculating interest on the PPF account. Therefore, to get maximum returns, you should make these deposits before the fifth of every month.