PPF accounts for minors follow strict contribution limits that differ from regular accounts. According to Mint, both parents cannot invest ₹1.5 lakh each in their child's PPF account, with total annual contributions capped at ₹3 lakh - not permitted under the scheme rules. An individual can contribute only up to ₹1.5 lakh per financial year across their own PPF account and accounts of their minor child. Importantly, both parents cannot claim tax deductions for the same child's PPF account - the deduction is strictly limited to the parent officially registered as the legal guardian on the account, counting against their own Section 80C limit under the old tax regime.
Investing in a Public Provident Fund (PPF) can yield better long-term returns by timing contributions strategically. According to reports from Mint, depositing before the 5th of each month ensures interest accrual for that month, maximizing compounding benefits over the 15-year tenure at a current interest rate of 7.1%. This simple timing hack helps investors maximize their returns by ensuring deposits are considered for interest calculation in the respective month.
The timing of deposits significantly affects overall returns due to PPF's monthly interest calculation method. As reported by Mint, if you invest ₹1.5 lakh and miss the April 5 deadline, you will earn interest for only 11 months instead of the full year. This results in a difference of ₹887.50 in interest earnings - ₹9,762.50 versus ₹10,650 for the same investment period. The government sets PPF interest rates annually, with the current rate of 7.1% remaining unchanged from the previous quarter.
Parents can open a PPF account for minors at post offices or authorized banks offering scheme facilities. According to Mint, the account must be opened and operated by the child's parent or legal guardian until the minor attains adulthood at 18 years of age. To open a PPF account, you need to fill and submit the application with KYC documents including Aadhaar Card copy, proof of residence, and passport-size photo. A minimum contribution of ₹500 is required at account opening, with deposits allowed as lump sum or up to 12 installments in multiples of ₹100.
The government has maintained PPF interest rates at 7.1% for the first quarter of FY 2026-27, covering the period from April 1, 2026 to June 30, 2026. According to the finance ministry notification reported by Mint, these rates remain unchanged from the fourth quarter of FY 2025-26. The government last revised interest rates on small savings schemes, including PPF, in the fourth quarter of 2023-24, highlighting the stability in current rates. The scheme offers EEE (Exempt-Exempt-Exempt) tax status with tax benefits on contributions, interest earned, and maturity proceeds.
The Public Provident Fund is a government-supported savings scheme known for its safety, steady returns, and tax advantages. As reported by Mint, the account has a 15-year tenure which can be extended in blocks of five years. The scheme offers monthly interest calculation with interest credited on March 31 each year, making the timing of deposits crucial for maximizing overall returns throughout the investment period. During extensions, you can choose to not add any more contributions, with each extension requiring a separate request to the bank or post office.
