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Nomination in PPF

PPF allows you to nominate more than one person. You can nominate one or more nominees to your PPF account if you so wish. The PPF account holder has to mention the percentage of share in case the nominee is more than one person. But do remember nomination is not allowed to an account opened on behalf of minors. You can change or cancel the nomination at any point of time during the PPF account period, but do note that you cannot nominate a trust to your PPF account. But being the nominee does not mean you will be allowed to continue the account. All the nominee gets is the right of ownership in terms of an authority to collect the money on the death of the subscriber and retain the money as a trustee for the benefit of the persons who are entitled to it under the law.

How to change the nominee name in PPF?

Modern life is full of uncertainties be it in our daily life or in our financial matters. It is always sensible to be prepared for unforeseen situations. One such step is Nominee Change in PPF Account. There are multiple reasons why you may need to change the nomination in your PPF account, some of which are listed below:

  • Due to death of present nominee
  • Due to divorce
  • Change from Wife to Son or Daughter
  • Change from Husband to Son or Daughter
  • Change from Father or Mother or vice versa
  • Change from Mother to Wife
  • Change from Father to Husband
  • Change from Son to Grandson or Granddaughter

Benefits of Opening a PPF Account

  • PPF is a Government-backed scheme and the principal and interest amounts in your PPF account are guaranteed and safe
  • Contributions to the account of up to Rs. 1,50,000 per annum and interest earned on the savings are both tax-free
  • The interest rate for the PPF account is declared by the Government every quarter. It must be noted that PPF returns are higher than FD rates of many banks in that period
  • The PPF account is immune from attachment from any order or decree of any court under the Government Savings Banks Act, 1873

Eligibility to Open a PPF Account

Mentioned below are the eligibility criteria for opening a PPF account:

  • Only Indian residents are allowed to open a PPF account.
  • In case a Non-Resident Indian (NRI) has opened an account while he/she was an Indian resident, the account can be continued for 15 years. However, NRIs do not have the option of extending the account.
  • Hindu Undivided Families (HUFs) cannot open a PPF account.
  • An individual is allowed to have only one account under his/her name.
  • Individuals can open a PPF account on behalf of a minor as well.

FAQs: How to change Nominee Name in PPF

1. Can a person have 2 PPF accounts?

No, one person cannot have 2 PPF accounts. However, a family is eligible to have multiple PPF accounts, a parent or guardian of the family can have individual accounts of their own and one of them can also open a PPF for a minor child (if they have any).

2. How can I get the maximum benefit from PPF investment?

In order to obtain maximum PPF benefits, one should always make investments before the 5th of every month. Higher returns can be earned when a lump-sum investment is made at the start of financial year i.e, before 5th April every year.

3. Can a senior citizen open a PPF account?

There is no fixed upper age limit for opening a PPF account. Any Indian resident can open a PPF account and start investing.

4. Can I withdraw my PPF before maturity?

The amount in PPF account can be withdrawn only at the time of maturity. However, earlier the PPF amount was locked for 15 years. But, now the balance of PPF account can be withdrawn on completion of 5-years.

5. What is the PPF lock-in period?

Investments made to a PPF account have a lock-in period of 15 years. However, individuals can make a partial withdrawal from the PPF account after 5 years from the date of opening the account.

End Note

While opening a PPF account, you will not find the provision for nomination in the application form. The nomination has to be filed in a separate form (Form-E) to avoid any legal hassles for the nominee later on. If one wants to change the nominee name in PPF, it can be done by following some simple steps.

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