The Public Provident Fund or PPF is a very popular investment for conservative investors. PPF enjoys a sovereign guarantee on both the principal and interest earned. PPF currently offers an interest of 7.9% for the October to December quarter.
PPF has a 15-year lock-in and enjoys Section 80C tax benefits up to Rs 1.5 Lakhs a year. PPF also enjoys the EEE tax benefit. Your investment enjoys the Section 80C benefit, while the interest earned and the amount withdrawn at maturity are tax-free.
What if you have more than one PPF account in your name? Problems could arise with more than 1 PPF account as you are allowed to have just a single PPF account. Some people have multiple PPF accounts in their names. They could have one PPF account in the bank and one at the post office. So, what should you do if you have two PPF accounts?
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You must make a declaration when opening a PPF account saying you don’t have any other PPF account. However, you can open a PPF account in the name of your minor child. If you have two children, one of the parents can open a PPF account in one child’s name while the other parent can open a PPF account in the second child’s name.
See Also: How To Open PPF Account Online?
If you have more than one PPF account in your name, you must get rid of the others. Otherwise, the second account becomes an irregular account. You will not get any interest on the balance lying in the second account. You have to regularize the PPF account. Do note that you cannot close the second PPF account until maturity of 15 years. You must keep the PPF account active by making a deposit of just Rs 500 a year, which is the minimum amount.
If you have two PPF accounts you must amalgamate both of them. This is a must to avoid loss of interest on the irregular account.
See Also: PPF Account Rules
If you are relocating to another place, transfer the PPF account from one bank branch to another.
See Also: Why PPF is a Great Investment?
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