What are the nomination rules for ppf?

Savings are an integral part of every person’s life. When people can spend money to meet their daily needs, they must also learn to save for the future. The future is unpredictable, and emergencies are unplanned. Hence, it is essential to remain financially prepared beforehand for any obstacle that may arise in the future. Money and funds help people face even the worst of circumstances, provided they start saving from an early age.

A Public Provident Fund or PPF is a savings scheme offered by the Government of India that includes no taxes. They pay the interest rate for the account every quarter of the year based on a monthly calculation. They consider the lowest balance between the close of the fifth day and the last day of the month for interest calculation. However, if the account receives a deposit of money on the sixth day, no interest is applicable on that amount in the respective month. The account should accept all the deposits between the 1st and the 5th of every month for increased returns.

The nomination rules

The PPF account has specific rules for nominees that every account holder must follow. The nomination is applicable for one or more persons. In case more than one person is chosen as a nominee, specify the percentage share received by each one of them.

The rules for nominees are as follows:

  • Accountholders who are minors cannot receive any nominations
  • Parent, spouse, relatives, children, friends, etc., are eligible to become nominees of the account holder
  • The applicant must submit Form E to add a nominee to the account
  • The account holder can apply for nomination at any time during the tenure of the account. Fill Form F to change, cancel, or alter a nominee
  • The nomination forms require the signatures of the account holder and two witnesses. Nominees need not sign them.
  • Submit the form at a bank or post office branch after reading all the details and filling the required information

The documents required for opening the account

Those who are interested in opening a provident fund account should submit some verification and identification documents to ease the account opening process.

The list of documents required for PPF account opening are as follows:

  • The form to open an account (Form A) that is available at banks and even online
  • Identity proof
  • Address proof
  • A photograph of the account holder
  • Nomination form

All those who own an account under PPF can have a secured and stress-free life after retirement without any financial burden.

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