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 interest.

Reference: POSB Manual – Transfer of PPF Account, Note 1 & Note 2.


Comments

Post a Comment

Financial Calculator




I would like to request you to join our following services.
It is the smartest way to stay on top of latest Mutual fund, Bonds & IPO News .

 Product Updates on whatsapp


 Product Updates on Email 

                                                   
 Product Updates on Telegram



You will get daily news updates for FREE. 
I also request you to spread the world by referring us to the smartest people you know.  

To share it with your friends, 
just Copy below message it & paste in your group

Subscribe to Our WhatsApp, Email & Telegram Update Service ! https://bit.ly/3ryhxBM
     

Popular Posts

General Guidelines for ITC Shareholders - How to Split the Purchase Cost Between ITC and ITC Hotels Shares After Demerger

-
Image
            ITC Ltd. Demerges Its Hotels Business: What It Means for Shareholders ITC Ltd. has officially separated its hotels division, creating a new company called ITC Hotels Ltd. (ITCHL). This means ITC shareholders will receive shares of ITCHL as per the demerger ratio. How Will Shareholders Benefit? If you held ITC shares as of the record date (January 6, 2025), you will get shares of ITC Hotels Ltd. in the ratio of 1:10 . This means for every 10 shares of ITC Ltd. , you will receive 1 share of ITCHL . Tax Implications for ITC Shareholders Taxes will apply only when you sell either your ITC shares or ITCHL shares. The tax treatment depends on how long you have held the shares: Short-term capital gains (STCG) – If sold within one year of purchase (for listed shares). Long-term capital gains (LTCG) – If held for more than one year . The holding period for ITC Hotels shares will be counted from the date when you originally bought ITC Ltd. shares. Cos...
Read more

NPS After Death: Withdrawal Rules, Tax Benefits & Annuity Options for Nominees

-
Image
NPS Annuity After Death – What Happens to the Corpus? Question: “If an NPS subscriber dies, what happens to the accumulated amount? Will the nominee/legal heir get the full 100% corpus or is it compulsory to buy annuity? Also, is the amount received tax-free?” Answer: As per PFRDA (Exits & Withdrawals under NPS) Regulations, 2015 & amendments , the rules differ slightly depending on the type of NPS account. Let’s break it down: ✅ For Subscribers from Government Sector : If the accumulated corpus is up to ₹5 lakhs , the entire amount is paid as a lump sum to the nominee/legal heir. If the accumulated corpus is more than ₹5 lakhs , then: 80% of the corpus must be used to purchase a default annuity from an Annuity Service Provider (ASP). 20% of the corpus can be withdrawn as a lump sum . ✅ For Subscribers from All Citizen & Corporate Sector : In case of death, 100% of the accumulated corpus is payable to the nominee/legal heir as a lump sum . T...
Read more

The Secret Behind Faster Wealth Creation: The 8-4-3 Rule of Compounding

-
Image
The 8-4-3 Rule of Compounding: Why the Biggest Wealth Creation Happens Later Many investors begin their Systematic Investment Plan (SIP) journey expecting quick results. However, wealth creation through SIPs is rarely dramatic in the early years. The real magic lies in the power of compounding, which rewards patience far more than timing. Example: A monthly SIP of ₹30,000 earning around 12% annualized returns can demonstrate the power of compounding through the popular 8-4-3 Rule. Milestone Journey of a ₹30,000 SIP Corpus Milestone Approximate Time Taken Cumulative Wealth Created First ₹50 Lakhs 8 Years ₹50 Lakhs Next ₹50 Lakhs 4 Years ₹1 Crore Third ₹50 Lakhs 3 Years ₹1.5 Crore Visual Understanding of the 8-4-3 Rule Notice how the time required to create each additional ₹50 lakh corpus keeps reducing as compounding gains momentum. First ₹50 Lakhs 8 Years Second ₹50 Lakhs 4 Years Third ₹50 Lakhs 3 Years Why Does This ...
Read more