Due to the risk-free and good returns, most people consider investing in Public Provident Fund (PPF) beneficial. You can financially strengthen your future by opening a PPF account for your child. Parents can also open PPF account in the name of the child but there are certain conditions applicable to it. But it has some special rules. We are telling you about those rules.
One can open only one account in the name of a person. One person can open
only one PPF account in his name. However, in addition to their PPF account, the person can open another PPF account in the name of the minor child. But the thing to note here is that a parent can open a PPF account in the name of a single child.
According to the rules, if someone has two children, then the PPF account of a minor child can be opened by the mother and the father of the other. Both parents cannot open a minor PPF account in the name of the same child.
How much money can I deposit?
Minor PPF account also has a deposit limit of at least 500 and maximum of Rs 1.5 lakh in a financial year. But if the parents also have their own PPF account, then the maximum deposit limit for both their own account and the minor’s PPF account will be Rs 1.5 lakh per annum.
Loan facility is available on this also?
Other benefits such as loans and partial withdrawals are applicable to a minor’s PPF account as well as an adult’s PPF account. To make a loan or partial withdrawal from a minor’s account, the guardian will have to declare that the money being withdrawn is being withdrawn only for the minor.
After the child is 18 years old, the child can handle his account.
After the minor child turns 18, an application will have to be given to the account status from the minor to major. After this, a grown child can handle his account by himself. In special cases, the account can be closed after completion of 5 years. For example, when there is a need for money for higher education of the child or for the treatment of any disease, etc.
Account can be opened in a post office or bank.
A PPF account can be opened in a post office or bank by someone else in his own name and on behalf of a minor. However, as per the rules, a PPF account cannot be opened in the name of a Hindu Undivided Family (HUF).
You will get Rs 1.02 crore every month for investing 12,500 rupees.
If you want to create a fund of 1 crore rupees through this scheme, then you will have to invest 12,500 rupees every month for 25 years. On the other hand, if you invest 10 thousand rupees a month, then after 25 years you will get about 81.76 lakh rupees. Know here how much you will gain by investing in it.
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