PPF Account for Minors: A Secure Way to Save for Your Child’s Future
Starting to save money for your child’s future right after their birth can give you peace of mind. One well-known way to do this is by opening a Public Provident Fund (PPF) account in your child’s name. This is a safe investment option with guaranteed returns. You can open and deposit money into a PPF account for your minor child and secure their future funds.
PPF accounts are risk-free and offer good interest rates, making them one of the best choices for long-term savings. Anyone can open a PPF account, including for children. In this article, you will find all about opening a PPF account for minors, its benefits, eligibility, and how to apply.
PPF Account for Minors in 2025
PPF is still one of the most popular and safest long-term savings options. A person can open only one PPF account in their name. But you can also open an account for a minor child. Until the child turns 18, the account is managed by the parent or legal guardian. After that, the account ownership moves to the child, and they can manage it themselves.
You can open a PPF account for minors by putting in a minimum amount of Rs. 500. The maximum yearly deposit allowed is Rs. 1.5 lakh. The account lasts for 15 years, during which you can add money whenever you want to build a fund for your child’s future.
Why Choose PPF Account for Your Child?
- Minimum deposit of Rs. 500 needed to open the account, and you can add up to Rs. 1.5 lakh each year.
- You can open a PPF account for children of any age, from birth up to 18 years.
- The current interest rate on PPF accounts is 7.1% per year.
- Only the parent or legal guardian can open the account for the minor.
- The account matures in 15 years, but early closure is allowed in special cases like the child’s higher education needs.
- Partial withdrawal is allowed after 7 years from the account opening.
Benefits for Parents or Guardians
- Deposits in a PPF account qualify for tax deduction under Section 80C of the Income Tax Act.
- Interest earned is tax-free.
- Partial withdrawal or closing before 5 years may attract taxes.
- If a parent or guardian deposits money in the child’s PPF account, they can claim tax benefits.
Eligibility to Open PPF Account for Minors
- There is no minimum age to open a PPF account for a child; it can be done anytime from birth.
- Parents or guardians operate the account until the child turns 18.
- A family can open PPF accounts for up to two children only.
Documents Needed to Open a Child’s PPF Account
- Parent’s Aadhaar Card
- Child’s Aadhaar Card
- Birth Certificate of the child
- Age proof
- Passport size photographs
- e-KYC documents
- Mobile number
Steps to Open PPF Account for Your Child
You can follow these simple steps to open a PPF account for your minor child:
- Visit the nearest post office or bank that offers PPF services.
- Request and collect the PPF account opening form.
- Fill the form carefully with all the needed details.
- Attach all necessary documents as listed above.
- Submit the filled form along with documents to the bank or post office.
- The officials will check your submission.
- Once verified, the PPF account will be opened for your child.
- You can then start depositing money as you wish.
PPF Account for Minors: Frequently Asked Questions
What is the minimum age to open a PPF account for a child? There is no minimum age. You can open it from the child’s birth. Until the child turns 18, the parent or guardian manages the account.
How much can be deposited in a PPF account? Minimum Rs. 500 and maximum Rs. 1.5 lakh per year can be deposited.
Can a minor close their PPF account? It can only be closed before maturity if the funds are needed for the child’s higher education.
How many children’s PPF accounts can one family open? Up to two children can have PPF accounts opened in the family.
Opening a PPF account for your minor child today is a smart step towards securing their financial future with safety and good returns that will help meet their needs in the years to come.