Earlier, there was no option but to open Public Provident Fund (PPF) account only in post office but now many banks are offering this service.
- Here is a list of banks which offer PPF account.
- ICICI Bank
- HDFC Bank
- SBI Subsidiaries
- Bank of Baroda
- Bank of India
- Central Bank of India
- Indian Overseas Bank
- Union Bank of India
- IDBI Bank
- Vijaya Bank
- UCO Bank
- Punjab National Bank
- Oriental Bank of Commerce
- Bank of Maharashtra
- Allahabad Bank
- Canara Bank
- Corporation Bank
- Dena Bank
- Indian Bank
- Axis Bank
- United Bank of India
- Syndicate Bank
Not all the branches of the bank are authorised to open PPF account. So, please check with the bank before opening or transferring account.
Why Opening PPF Account in bank is better than post office?
Opening a PPF acccount at the bank has many advantages. One is that transfer is very easy, through a mandate or debiting your account say every month. This online ability to make payment is one of the best features of opening a PPF account at a bank. Also, if you open a PPF account at a bank like State Bank of India, you have access to the solid branch network that is available all through the place.
In the case of the post office, if it far away you need to visit the post office.
How to transfer the balance of PPF from post office to bank?
To begin the process of transfer one needs to first submit the form to the post office for the transfer. The post office would then proceed to send all the relevant documents to the concerned bank of the branch, to which the PPF account is to be transferred.
These include account opening form, nomination form, signature and all other information. The post office will also arrange to transfer the balance standing in the PPF account at the post office to the branch.
Why open a PPF account?
There are a number of reasons to open a PPF account. The first is that interest rate on the PPF is 7.6 percent per annum, which is the higher than most banks.
Secondly, you get tax benefits under Sec 80C of the Income Tax Act. Apart from this the interest is also exempted from Income tax in India.
Recently, the government issued a guideline, according to which interest rates on the PPPF would be revised every quarter. So, be prepared for a revision, though we believe that interest rates would be much better than banks.