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Provident Fund

PPF Account for Minors: Eligibility, Documents Required, Rules

If you're planning to open a PPF account for minors on their behalf then this article is for you. Read on to know why it can be beneficial for the minor.

PPF Overview:

PPF is one of the most popular investment options in India. It is mainly because of the minimum deposit requirements and the tax exemptions that a person gets. One of the biggest benefits of investing in a PPF account is that the interest earned is tax-free. This means that the returns are higher than other investment options. In this article, you will read about the features of a PPF account for minors and important points to keep in mind if you are opening a PPF account for a child on their behalf.

Under PPF scheme, there wont be any restrictions on both parents contributing to child’s PPF account. As per this scheme any person can contribute more than 1.5 lakhs to their account and their child’s minor account taken together in a same year.

Did You Know – If you plan to make the deposit in the PPF account in installments you must know that the number of installments cannot exceed more than 12.

What is PPF?

Public Provident Fund (PPF) is a savings-cum-tax-saving instrument in India, introduced by the National Savings Institute of the Ministry of Finance in 1968. It is a long-term investment option with a maturity period of 15 years. It is backed by the Government of India and offers a safe and secure way to accumulate savings for future needs.

PPF Account for Minors – PPF is open to all Indian residents and Hindu Undivided Families (HUFs). The minimum amount that can be invested in a year is ₹500 and the maximum is ₹1.5 lakh. The interest rate on PPF is set by the government and is reset each year. It offers attractive tax benefits under Section 80C of the Income Tax Act 1961. The interest earned and the maturity amount are both tax-free.

PPF is a good option for those who want a safe and secure investment with a reasonable return. It is a long-term investment, so it is suitable for those with long-term financial goals. It is also a good option for those looking for tax savings.

Calculate Your PPF Maturity Amount

Features Of PPF Account for Minors

There is no age limit for investing in a Public Provident Fund (PPF). It can be opened by anyone who is above the age of 18 years.

  • Every individual is allowed only one PPF account.
  • Multiple PPF accounts are not allowed for anyone including minors.
  • When a PPF account is being opened for a minor their Guardian or parent can operate on their behalf.
  • The facility of joint accounts is not available for PPF accounts.
  • Only one Guardian is allowed to open a PPF account for minors.
  • The people starting a PPF account can deposit the amount in it in lump sums or installments.
  • The minimum amount required to start a PPF account is ₹500 whereas the maximum fund that can be deposited is ₹150000.
  • The person who is operating the public provident fund of a minor must be their natural or legal Guardian and have proof of it.
  • A minor’s grandparents are not allowed to operate their PPF account unless they are their legal guardians.
  • The legal guardian is allowed to nominate a person when opening a PPF account for minors.
  • At the end of the financial year, the interest on the funds of the PPF account is credited to the account.

Eligibility criteria on PPF Account for Minors 

The following Eligibility criteria should be met to open a PPF account for a minor-

  • Residents of India can open a Public Provident Fund account and receive returns that are tax-free.
  • Just one of the guardians may open the account.
  • A natural or legal guardian must be the person managing the PPF Account for Minors.
  • Grandparents of a minor child cannot manage a PPF account unless they are appointed legal guardians after the parents’ passing.
  • In order to open a PPF account, a nominee must be registered.
  • A person can make a minimum contribution of Rs. 500 and a maximum contribution of Rs. 1.5 lakh to the minor’s PPF account during a financial year (Note that the maximum cumulative contribution a person can make during a financial year is Rs. 1.50 lakh in both his and the minor’s account).

Documents Required to Open PPF Account for Minors

Documents Required for PPF fund for Minors are:

  • Documents that can be used as age proof for the minor. For example, Aadhar card.
  • The legal guardian of the minor must present that KYC document and it must include that identity proof passport size and address proof. Aadhar card, PAN card, driver’s license, or other such documents can be used as identity proof.
  • A PPF form with all the information about the minor and the Guardian must be submitted.
  • An initial contribution has to be deposited into the PPF account and a check is required for that.

Rules: Important Points to Remember 

If you’re planning to open a PPF account for minors and you are the legal Guardian, parent, or natural guardian of that child, it is important that you know some important things about public provident funds.

 We have mentioned some points that will help you in the future.

  • ₹100 is the minimum initial deposit that a person has to make to open a PPF account for minors.
  • Once you open the account you have to submit at least ₹500 in the PPF account to maintain it.
  • The maximum amount that a person can deposit is ₹150000.
  • If the amount that is deposited into the PPF account for minors is deducted from the guardian’s income, that amount is exempted from tax under section 80C of the Income Tax Act of India.
  • When the minor turns 18 years old it is compulsory to transfer the account from Guardian to the minor.
  • An application has to be submitted where the account was opened with the required documents.
  • Parents are allowed to withdraw funds from PPF accounts after 7 years. But they have to provide documents that prove that the withdrawn amount will be used for the minors’ benefit.
  • In certain situations, the guardian can close the minor’s PPF account. This can be done if the child requires medical treatment or for education purposes. This is to be noted that the PPF of an account can only be closed after at least five years of opening it.
  • The Guardian can take the loan against the amount in the public provident fund of the minor. But this amount must be used only for minors’ benefit and the guardian has to provide documents proving that.


PPF accounts are one of the safest investments available in India as they are backed by the government. This makes them a great option for children since their capital is at minimal risk.

Opening a PPF account for minors is very beneficial for them as it can be used for multiple purposes in the future such as their higher education marriage or other backup funds. There is no age restriction for opening a public provident fund account so no matter what the age of the minor is it can be done anytime. This is a great tool to secure the child’s future financially.

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