If I transfer my PPF account from the Post Office to a Bank, or vice versa, during the financial year, will I lose the interest ?
If I transfer my PPF account from the Post Office to a Bank, or vice versa, during the financial year, will I lose the interest ? Answer No, the interest is not lost merely because the PPF account is transferred during the financial year. As per the POSB Manual , the PPF account so transferred is treated as a continuous account with the benefits available under the PPF Scheme. The transferring bank or Post Office adds interest up to the preceding 31 March before the account is transferred. The interest from 1 April onwards is added by the transferee office after the close of the year . The Manual further clarifies that interest is to be added at the end of the year and not in the middle of the year . If interest were added at the time of transfer, it would result in compound interest being calculated on the interest already added for that year . Therefore, transferring a PPF account from Post Office to Bank, or vice versa, during the financial year does not result in loss of i...
