Parents can open a PPF account in their children’s name, which they manage until the child turns 18. Annual investments range from ₹100 to ₹1.5 lakh. This safe government scheme is considered a good investment option for children’s education, health, and future expenses.
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Financial planning is crucial for your child’s future. As they age, their needs and expenses increase, and many major life goals require a significant amount of money to achieve.
Therefore, it’s crucial for parents to create financial security for their children’s future. Proper investments can help prepare for future expenses like higher education, health expenses, skill development courses, or marriage.
Parents often consider several investment options, such as the Public Provident Fund (PPF), Sukanya Samriddhi Yojana (for daughters), mutual funds, fixed deposits (FDs), or child insurance plans. PPF is a popular choice because it offers safe and guaranteed returns from the government.
But the question arises: can parents open a PPF account in their children’s name? The answer is yes. In India, parents or legal guardians can open a PPF account in their children’s name. However, the account is managed by the parent or guardian until the child reaches the age of majority.
What is PPF account?
PPF is considered one of the safest long-term investment options. According to the rules, only one PPF account can be opened in the name of a minor child. The parent or guardian manages the account until the child turns 18.
A minimum of Rs 100 to Rs 500 is required to be deposited annually in a PPF account, while a maximum of Rs 1.5 lakh can be deposited in a financial year.
It is important to note that the total investment amount in the parent’s own PPF account and the child’s PPF account cannot exceed Rs 1.5 lakh annually.
The lock-in period for a PPF account is 15 years. However, partial withdrawals are also available under certain terms and conditions.
How to open a PPF account for children?
Parents or legal guardians can open a PPF account in the name of the child through an authorized bank or post office in India.
Know the eligibility
The child must be below 18 years of age.
Only one PPF account can be opened in the name of a child.
The account will be operated by the parent or legal guardian until the child attains majority.
What important documents will be required
These documents are usually required:
Child’s birth certificate
Aadhaar card and PAN card of the parent or guardian
Address proof
Passport size photo of the guardian
PPF Account Opening Form
Some banks may also ask for additional KYC documents.
Minor PPF Account Opening Process
Go to any bank or post office where PPF facility is available.
Fill the PPF account opening form for children.
Submit the required documents.
Deposit the minimum amount.
The account will be activated after verification of the documents.
Nowadays, many banks also provide the facility of opening a PPF account online through net banking, provided the parents already have an account in the same bank.
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