New Delhi: The Public Provident Fund (PPF) is one of the most popular savings schemes favoured by Indians. PPF is backed by the government, offers tax benefits and encourages disciplined long-term saving which makes it a favourable choice for people. You can open a PPF account on your own. But what if you wish to open a PPF account for your children? Will it be considered as having two accounts? Continue reading to know all about PPF accounts for children.
How Many PPF Accounts Can You Have?
PPF accounts can be opened online or offline at post offices or banks. According to government regulations, you are only permitted to open one PPF account in your own name. Having multiple PPF accounts in your own name is not allowed. If you have one, the extra accounts will be considered invalid. Any money you have deposited in the second account will be refunded but you won’t receive any interest on it.
Can You Open Separate PPF Account For Children?
You can open a PPF account for yourself and another one on behalf of your child. However, you cannot open two accounts in your own name. You can open a PPF account for your minor child as the guardian of the account. However, it is important to remember that the combined yearly deposit in both your account and your child’s account cannot exceed Rs 1.5 lakh. The total investment in your personal account and your child’s account combined should be under Rs 1.5 lakh annually.
Can You Open Joint PPF Account With Your Child?
PPF accounts are strictly individual and therefore, you cannot open a joint PPF account with your child. All PPF accounts are linked to your PAN and duplication is detectable. However, you can open a separate individual account in your child’s name as a parent or legal guardian and manage it until they turn 18.
What Happens If You Open Second Account?
If you have opened two PPF accounts by mistake then the second account will be considered invalid. You should immediately inform the bank or post office about it. You can also close the second account as it is considered invalid. The money you have deposited in the second account will be returned but you will not receive any interest on it.
How To Open PPF Account For Child?
To open a PPF account for your child, you can apply online or offline at a bank or post office as a legal guardian. You have to submit your child’s birth certificate, your KYC documents and a minimum deposit of Rs 500. Keep in mind that the total annual investment for your and your child’s accounts combined cannot exceed Rs 1.5 lakh.
