Public Provident Fund (PPF) is one of the most trusted small savings schemes in the country. Lakhs of people invest in it because of government guarantee, tax exemption and attractive interest. But many times, due to changing banks, shifting to another city or forgetting the details of the old account, two PPF accounts are opened in the name of people. In such a situation, the biggest question is whether both the deposited money and interest will be lost?
Only one PPF account allowed in the name of one person
According to PPF rules, any person can keep only one PPF account in his name. This rule applies to both banks and post offices. That is, even if one account is in the bank and the other in the post office, it will not be considered valid. However, a person can open a separate PPF account for his minor child or mentally disabled person as a guardian.
Will money be lost if there is a duplicate account?
If you have two PPF accounts in your name then there is no need to panic. In August 2024, the Finance Ministry has issued new rules to regularize such cases. First of all the investor has to decide which account he wants to keep as primary. After this, after completing the prescribed process, the second account can be merged into the main account.
Whether interest will be received or not will depend on
The decision on getting interest on having two PPF accounts will depend on the total investment made in both the accounts in a financial year. If the total investment is within the annual limit of Rs 1.5 lakh, interest will continue to be earned on the eligible amount. But if the investment exceeds this limit, the excess amount will be returned and no interest will be earned on that portion.
Strict rules for having three or more accounts
If a person has three or more PPF accounts in his name, the regularization process will be applicable only to two accounts. The third and all subsequent accounts will be closed. The principal amount deposited in these accounts can be returned, but no interest will be paid on it.
If you have two PPF accounts then do this work immediately
Experts advise that if you have more than one PPF account in your name then do not ignore it. First of all, collect information about all the accounts and stop new investments for now. After this, contact the concerned bank or post office and start the process of regularization. Also keep the records of investments made in every financial year safe. By taking right steps in time, your eligible interest will be safe and there will be no problem in future at the time of maturity or withdrawal of money.
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