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PPF Account for Minors - Invest in your child's future

  • Writer: YashJ
    YashJ
  • Jul 24, 2021
  • 2 min read

Introduced in 1968, the sole aim of this scheme was to offer investors a way to save money and grow their wealth in time with high returns. Another benefit of the PPF is related to income tax returns. Any balance in PPF is not subjected to wealth and income tax!



PPF for MINOR's - Eligibility

  • An eligible Indian citizen can only have One PPF account.

  • Natural or Legal Guardian can open a PPF account for the minor child.

  • Only one of the guardians can open the account.

  • Grandparents of the minor child cannot operate the account unless they are legal guardians after the death of the parents

  • Registration of nominee is must while opening of the account

  • Contribution is minimum of Rs. 500 and a maximum of Rs. 1.5 lakh to the PPF account of the minor, in a financial year (this should be the total contribution made by a family unit in a financial year)


How to Open PPF Account For Minors

  • It can be opened with a post office or a designated bank authorized to open the PPF accounts.


Documents Required

  • PPF account opening form.

  • Account opening KYC documents of the guardian.

  • Age proof of the minor.

  • A cheque for initial contribution to the PPF account.


Investment Details

  • The minimum amount that has to be invested is Rs. 500 in a financial year. The upper limit of investment per year is Rs. 1.5 lakhs.

  • Lock in Period is for term of 15 years.

  • Later, minor can choose whether he/she wants to continue the PPF account after the 15-year maturity period.


Other Points to remember

  • As soon as the minor reaches 18 years of age, it is mandatory to submit an application for the transfer of account from the guardian to the minor.

  • If the minor’s PPF account is having amount invested from the income of the parent/guardian, then that amount can be included under Section 80C of the Income Tax Act and will be eligible for tax benefits.

  • Under certain specific conditions, minor's account can be closed by a parent or guardian prematurely.

  • Partial Withdrawals can be done from the 7th year of opening of account.

  • Request to close the account can only be made after lapse of 5 years from date of account opening.


PPF vs NPS: Which will accumulate Rs 1 crore faster ?



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