According to reports from Business Standard, a PPF account can be opened in the name of a minor child under specific regulations. Under PPF rules, a parent or legal guardian can open a PPF account on behalf of a child below 18 years of age. However, only one PPF account is allowed per child, and either the mother or the father can operate the account as guardian, not both simultaneously. A grandparent cannot usually open a PPF account for a grandchild unless they are the legal guardian of the child.
As reported by Business Standard, the combined contribution in a parent's own PPF account and the minor child's PPF account cannot exceed ₹1.5 lakh in a financial year. For example, if a parent contributes ₹1 lakh to their own PPF account, they can invest only up to ₹50,000 in the child's account during that financial year. The minimum contribution requirement remains low, generally starting from ₹500 annually to keep the account active. Investors should note that excess deposits beyond the permitted limit do not earn interest and may create complications during account management.
According to Business Standard, the account remains under the guardian's control until the minor becomes an adult. Once the child turns 18, they must submit fresh account operation details and KYC documents to continue operating the account independently. The account opening process involves visiting a bank branch or post office offering PPF services, filling out the minor PPF account opening form, submitting KYC documents including the child's birth certificate, Aadhaar card of parent or guardian, PAN card of guardian, address proof, and passport-size photographs. Several banks also allow online opening of PPF accounts for minors through internet banking.
As reported by Business Standard, PPF offers tax benefits under Section 80C and provides tax-free maturity proceeds. The scheme currently offers annual interest compounded yearly, with rates revised by the government every quarter. Since the lock-in period is 15 years, parents opening an account early in a child's life may build a sizeable corpus over time through disciplined contributions and compounding. The account comes with a 15-year lock-in period, making it a long-term savings product, but partial withdrawals are permitted subject to specific rules after completion of a prescribed period.
According to Business Standard, financial planners suggest the decision to open a separate PPF account for children depends on investment goals and overall tax planning. For risk-averse families seeking stable, tax-efficient long-term savings, a minor PPF account can be useful. However, investors should consider factors such as inflation and long-term return expectations. Since PPF has a long lock-in and fixed-income nature, some parents combine it with market-linked products such as mutual funds to balance safety and growth potential. The key advantage of starting early is the power of compounding over a long investment horizon, especially valuable when planning for large future expenses linked to children.
