PPF Account for Minors - Rules, Eligibility & Documents Required

A Public Provident Fund (PPF) account for minors lets parents or legal guardians begin savings early on behalf of their child. The guardian opens and manages the account until the child turns 18, making it a reliable way to secure funds for future needs like education or other milestones.

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What is a PPF Account for Minors

• The scheme Public Provident Fund (PPF) allows a PPF account to be opened in the name of a minor (child under 18), with the account operated by a parent or legal guardian.
• This arrangement is meant to help parents build a long-term financial corpus for their child’s future for education, higher studies, or other long-term needs.

Who Can Open a PPF Account for a Minor (Eligibility)

• Only a natural parent (father or mother) or a legal guardian can open a PPF account for a minor.
• Both parents cannot open separate accounts for the same minor only one PPF account per minor is permissible, irrespective of bank or post office.
• The minor must be a resident Indian.
• There is no minimum age for a minor,  a PPF account can be opened even for a newborn.

Key Rules for PPF Account for Minors

• The account must be in the name of the minor, but operated by the guardian until the child turns 18.
• Joint accounts (child + parent) are not allowed.
• Only one PPF account per minor is allowed across all banks and post offices.
• The account can be opened at any authorized bank or post office.
• A nominee must be registered at the time of account opening.

Deposit, Contribution & Tax Rules

• The minimum deposit in a financial year is ₹ 500 and the maximum is ₹ 1.5 lakh.
• Deposits can be made in one lump sum or in installments throughout the financial year.
• The total deposit limit of ₹ 1.5 lakh per year applies to the combined deposits in the minor’s account and any PPF account held by the guardian.
• Contributions are eligible for deduction under Section 80C of the Income Tax Act (subject to limit).
• Interest earned and maturity proceeds are tax-free (PPF being an EEE — Exempt-Exempt-Exempt instrument).

Documents Required to Open a PPF Account for a Minor

To open the account, the guardian must submit:

• A duly filled PPF account-opening form containing details of both minor and guardian (name, date of birth, etc.)
• Identity proof and address proof of the guardian (such as Aadhaar, passport, voter ID, driving licence, etc.)
• Passport-sized photograph of guardian (and usually the minor)
  Age proof of the minor Birth certificate or Aadhaar card.
• Initial deposit cheque or payment (minimum ₹ 500 or as prescribed).

Depending on the bank or post office, you may be required to submit additional KYC or address-proof documents as specified.

What Happens After the Minor Turns 18

• Once the child turns 18, the account ownership can be transferred to them. The new adult account holder needs to submit an application along with proof of age and their signature. The guardian (who opened the account) may have to attest to this application.
• After transfer, the now-adult holder can operate the account make deposits, withdrawals (subject to PPF rules), or extend the account beyond the 15-year term.

Benefits of Opening a PPF Account for Minors

• Safe and government-backed savings instrument with low risk.
• Long-term corpus building for child’s education, higher studies, or future needs.
• Tax advantages,  contributions eligible for deduction under Section 80C and interest and maturity proceeds are tax-free.
• Discipline in savings with minimum annual deposit requirements and long lock-in period (15 years, extendable).

Things to Keep in Mind / Consider Before Opening

• Only one PPF account is allowed per minor avoid duplicates.
• The combined annual deposit limit (minor + guardian accounts) must not exceed ₹ 1.5 lakh to ensure full interest and tax benefits.
• The account must be managed by the guardian until the child turns 18 the child cannot manage it on their own as a minor.
• Keep required documents like age proof, guardian’s identity, and application form ready when opening the account.