Another government-backed saving scheme like the Post Office Saving scheme, the National Saving scheme, the Senior Citizen Saving scheme and so on, is the Public Provident Fund (PPF). Rather than hoard your money at home or park it in a savings account for a lower interest rate, choosing to invest your savings in PPF is a wise option. This low-risk savings scheme is beneficial as a subscriber can invest between Rs.500 to Rs.1,50,000 annually at a healthy interest rate of 8.70% per annum. A PPF account can be opened in either a post office or a bank – as per your convenience.
Due to certain situations – either you’re shifting your house, change of location (city or area) because of a job change or so on, you would need to shift your PPF account from one post office or bank to another, or bank to a post office or vice versa. The shift will require you to open a new account in the post office or bank, but that doesn’t mean that you will lose your previous savings. In fact, a new account with your outstanding balance will be opened. And no, you will not lose any interest in the process, neither will there be a processing fee for the transfer. Let’s get into the process of transferring a PPF account from one post office to another:
- The first step for the PPF account holder is to fill in the Form SB 10(b) – an application form for the transfer of the PPF account from one post office to another. The form is either available at the post office or you can download a copy from the India Post website.
- The application form consists of the account holder’s account number, his/her PF balance and the new address of the post office that he/she is shifting the account to. The form will require three specimen signatures.
- The account holder has to then submit his/her passbook along with the Form SB 10(b) to his/her current post office. One must make sure that the PPF passbook is updated before submission. To be on the safe side, take a photocopy of your updated PPF passbook.
- After submission, the postmaster will cross check the passbook balance, verify that the form is in order and sign it to confirm the closure of the account.
- The postmaster will then hand back the original PPF passbook and an application with a demand draft or cheque of the outstanding amount, which will be sent to the new post office.
- As soon as the new post office receives the application and the demand draft, a new account will be opened in its books. A new passbook stating the outstanding amount will be issued to the account holder.
The entire process should take 2-3 weeks. On opening the new account, make sure the balance stated in the issued passbook is correct. Else, contact the post office immediately to rectify the mistake. Also, as mentioned before, the interest rate does not change when he/she transfers their account to another post office. There have been cases of this happening and it is just a product of negligence. If you find yourself in this situation, make sure this too is rectified at the post office immediately.