Public Provident Fund: PPF account holder? Doing this would put you in big loss! Find the way out
Public Provident Fund (PPF) is a very good option for investing for long-term goals but if you are having trouble managing your PPF account due to transfer or any other reason, can you open a new PPF account? This is a question often asked by investors. The answer to this question is that the second PPF account can be opened, but it will be considered illegal and no interest will be available on the amount invested in the second account.
There can be only one PPF account in the name of one person. Instead of opening a new PPF account, you have the option of transferring your PPF account to another city or to another bank. Therefore, it is wise to transfer your account instead of opening a new one.Read more ↓
How to transfer PPF account
The lock-in period of PPF account is 15 years. Therefore, the account cannot be closed before 15 years, although it can be transferred. In order to transfer the account from one branch to another branch, you will have to fill an application in the bank’s branch where you have an account. You can ask for the application form at the bank. Along with this, please update your PPF Passbook and it should have final deposit and details of interest printed.
Do KYC again
Your application will be checked in the branch where your account is to be transferred. After scrutinizing the documents, your account will be opened in the new branch. Here you will have to give KYC documents once again. After the account opens, a new passbook will be issued, which will start from the previous closing balance. However, you should also keep your old passbook in hand.
If you open a new PPF account instead of transferring the old one then it will be considered as the second PPF account. Since the second account is invalid, you will not get any interest on your deposits.
The way ahead
Since the PPF account can not be closed before 15 years, you can not close the second account. So you will have to keep depositing the minimum amount required to maintain the account. Apart from this, you will have another option. You can request for a merger of both accounts by requesting the undersecretary of NS Secretariat of the Department of Economic Affairs, Ministry of Finance.