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A Public Provident Fund is a long-term savings scheme. Central Government offers this scheme to help Indian residents to invest and build a corpus. It is one of the ideal investment options for several investors for tax-saving purposes. The article explains about the ppf account for minors, its age limit, features, documents required etc.

PPF Age Limit

There is no age limit for the PPF Account. Both the adults & kids can open a PPF account. However, the minor cannot open an account on their own. The parent will operate the account as a legal guardian until the minor turns 18.

Features of PPF Account for Minors

The following are the key features of PPF account for minors – 

  • Every individual can have only one PPF account; multiple accounts are not allowed.
  • A guardian or parent can open a PPF account for a minor and operate on their behalf. 
  • PPF scheme does not allow joint accounts. Also, only one guardian can open the PPF account for a minor.
  • Subscribers can deposit in lump sums or instalments. The minimum amount to start a PPF account is Rs.500, and the maximum amount is Rs.1,50,000 in a financial year. Also, Rs.150,000 is the total maximum contribution the guardian can make cumulatively in this and the minor’s account in a financial year. 
  • The individual operating the minor account shall be a natural or legal guardian. 
  • Grandparents cannot operate PPF account for minors unless they are the legal guardians after the parents’ death. 
  • The guardian can nominate a person when opening the PPF account.
  • The interest earned on a PPF account is credited to the account at the end of the financial year. 

Use Scripbox’s PPF Calculator to estimate returns from PPF investment.

Documents Required to Open Minor’s PPF Account

The following are the documents for opening a PPF account for minors – 

  • A PPF form with all details of guardian and minor. 
  • KYC documents of a legal guardian or parent include ID proof, address proof and passport photograph. 
  • Age proof of minor (birth certificate or aadhaar card)
  • A cheque of initial contribution in the PPF account.

Things to Remember Before Opening a PPF Account for a Minor

  • The minimum initial deposit to open a account for minors is Rs.100. However, in a financial year, the minimum contribution should be Rs.500, and the maximum contribution can be Rs.150,000.
  • If the amount invested in the PPF account for a minor is from the parents/guardian’s income, this amount can be included in Section 80C of the Income Tax for tax benefits.
  • As soon as the minor attains 18 years of age, applying for account transfer from the guardian to the minor is mandatory. Also, the application must be submitted at the respective bank or post office where the account was opened along with the required documents and the signature of the minor who has turned major. Furthermore, the guardian must also attest to the application form. 
  • Parents can also withdraw from a PPF account for minors after seven years. However, they must submit proof that the parent will solely use the withdrawn money for the minor’s benefit. 
  • The guardian can seek to close the minor’s PPF account under specific conditions where the minor requires medical treatment for a severe ailment or funds for children’s higher education purposes. However, the account closure is allowed only after the completion of five years.
  • The guardian can also apply for a loan against the PPF account, where they will solely use the amount for the welfare of the minor. 

Opening a PPF account on behalf of children is the best way to gather funds for their higher education, marriage or any other backup funds. Also, this account can be opened anytime, and there is no age restriction. Therefore, the PPF account is a handy investment tool to create a substantial corpus for children’s future financial goals. 

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