PPF Account for Children: Public Provident Fund (PPF) is the most popular investment option. Apart from being risk free, it also gives good returns. You can make their future secure by opening a PPF account in your child’s name. We will tell you what are the terms and conditions applicable for opening a PPF account for a child.
- A person can open a PPF account in his own name.
- Apart from his PPF account, a person can open another PPF account in the name of his minor child.
- If the parents have two children, then the PPF account of one minor child can be opened by the mother and the PPF account of the other child by the father.
- Both the parents cannot open a minor PPF account in the name of the same child.
how much money can deposit?
- A minimum deposit limit of Rs 500 and a maximum of Rs 1.5 lakh is applicable in a financial year for a minor’s PPF account as well.
Loan and partial withdrawal
- Minor PPF account also offers benefits like loan and partial withdrawal.
- However, for making a loan or partial withdrawal against a minor account, the guardian has to declare that the money is being withdrawn for the minor only.
when the child is 18 years old
- When the child turns 18, an application will have to be made for his account status from minor to major.
- An adult child can handle his/her own account.
How to apply for PPF:
- First of all go to your nearest bank or post office.
- There you will have to take a form to open a PPF account.
- Carefully read and fill the information asked in the application form.
- Some documents will also be asked in the application form.
- Attach those documents with the application form and give it to the employee of the institute.
- Then check the employee application. After verifying the information properly, the account will be opened.
These documents will be required
- Parent’s KYC mandatory, child’s photo, child’s age proof, including Aadhar card and birth certificate
A PPF account can be opened in a post office or bank in one’s own name and on behalf of the minor through any other person. However, as per the rules, a PPF account cannot be opened in the name of a Hindu Undivided Family (HUF).