Public Provident Fund (PPF) is a good and safe option for investment in Small Savings Schemes. There is no risk involved in investing in PPF as the scheme is protected by the government. Along with this, great interest is available on this scheme. At present, interest is being given on it at the rate of 7.1 percent. However, the interest rate on PPF account is revised every quarter.
It should be kept in mind that a person can have only one PPF account. However, many times people accidentally open more than one PPF account. If this has happened then you can merge both the accounts.
Postal department circular
Let us tell you, in a circular by the Department of Posts, it has been said that, if the depositor opens more than one PPF account, then the second and subsequent accounts are considered irregular. In such cases, considering the requests of the PPF subscribers, the Department of Economic Affairs regulates such irregular accounts/deposit by merging more than one PPF account into one account, relaxing the rules. On receipt of the Finance Ministry’s consent for merging more than one PPF account, the post offices will follow the Standard Operating Procedure (SOP) for merging the accounts.
Apply for merging accounts
The merger of PPF accounts requires negotiation between different operating agencies (banks or post offices). For merger, the depositor has to take the photocopy of the passbook / account details to the office (post office or bank) where he wants to maintain the account. After this, this office contacts the office where the account is to be merged and requests to verify / send the details of the annual subscription for the financial years.
The maturity and other things will be decided from the date of opening the account in which you will merge the other account. The date of actual transfer / balance in the account, loan / withdrawal etc. will also be considered as the main date. If there is any outstanding loan in any PPF account to be merged, then the entire outstanding loan amount along with interest will have to be paid.