A Provident Fund Account is a non-operating natured account that can only be opened by employer on behalf of their employee for special saving purpose.
Features
| Nature | Non-operating account |
| Minimum Balance | Zero |
| Interest rate | As per published interest rate of Bank |
Interest Calculation | Interest Calculation on daily and payable quarterly |
| Eligibility | Individuals except minors can open this account |
Points to be noted:
- Provident fund account must come by the employer containing lists of employees and other required documents for account opening.
- Unlike other saving accounts, specimen signature and photo of the Employee may not be present.
- Payment can only be made by an official letter of instruction by the employer instructing about the payment of Provident fund regardless of the employee work contract status.
- Up on request, Statements shall be issued to the employer, or if possible, at the time of closing the account statement can be given to the beneficiary.
- An accountholder can maintain another saving account in the same bank by using same client code.
- Additionally, we can approach the organization to maintain payroll account/salary saving account also if not maintained already.
