Can I continue my daughters PPF account for 30 yrs ?

POSTED BY sandeepdck ON January 5, 2014 9:18 am COMMENTS (3)

I am 30 years old and my daughter age is 2 years. I had already opened a PPF account in my name, four years back. Now, I want to open a PPF account in my daughter`s name. I want to know that how long can I continue my daughter`s PPF account? 15 years or more? I wish to continue the PPF account of her, up to next 30 years, till I am in service.

Further, if she (my daughter) wants to continue her PPF account, can it be extended for more years. Did rules allow me to do that?

3 replies on this article “Can I continue my daughters PPF account for 30 yrs ?”

  1. ashalanshu says:

    Dear Sandeep, after completion of initial 15Y period, your D’ter is still minor and thus on her behalf, you ‘ll apply for extension of first 5Y block. Now @ 20Y time, she ‘ll be 22 and under her signature, now the PPF account can be continued till she wishes so for blocks of 5Ys each as she is Major now. There is no ambiguity in rules.



  2. sandeepdck says:

    Sumit ji, thanx for this useful information. This is a common rule for any PPF account. I want some more clarifications about the rules for PPF account of a minor child.

    Suppose I opened an account in the name of my minor daughter under my guardianship. Now I will take care of that account for next 15 years. No problem.

    But problem arises after completion of 15 years, as my daughter will be 17 years, then:

    Is there any provision in PPF rules and regulation Act that my guardianship ends at this stage or one year later (at the age of 18 years) and my daughter who herself will now be able to make signatures, can continue the same account in her own responsibilities and in her own name?

    My planning is to continue her account up to next 25-30 years until she get some source of income and thereafter gift the said account to my daughter, so that she can continue the same for more years as she needs. Is this possible?

    Bank officials whom I contacted, were not very co operative and are discouraging me to not open account in the name of minor daughter. I think they are misinterpreting the rules.

    Actually, I am not investing in PPF account of my daughter for tax saving purpose. It is an investment to make her future secure by contributing small amount from the beginning. My plan will give excellent results in long term and if, after 15 years bank officials refuses to extend the PPF account of minor child then whole planning will be in vain.

    so guide me.

  3. Sumit says:

    Hi sandeepdck, yes you can.

    On completion of 15 years, the account can be further extended in blocks of 5 years each for any number of blocks and the extension can be with or without contribution as per account owner’s wish.

    In case the account is extended without contribution, any amount can be withdrawn without restrictions. However, only one withdrawal is allowed per year.
    If you continue the account after 15 years, with continued deposit, withdrawal up to 60 per cent of the balance at the beginning of each extended period (block of five years) is permitted.


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