Can I open PPF account for my minor kids ?

POSTED BY surinderkgupta ON October 17, 2013 2:58 pm COMMENTS (2)

I have a PPF account. Can I open PPF account in my Two minor kid’s name and deposit Rs 1 lac in each account.  Total Rs 3 lac per annum. Shall I get interest on all the three accounts. I understand that I shall get tax exemption on Rs 1 lac only.

2 replies on this article “Can I open PPF account for my minor kids ?”

  1. ashalanshu says:

    Dear Surinder, as per PPF rulebook, you can not invest 3L Rs. in the said 3 accounts. The combined limit is 1L Rs. for your own account + 2 guardianship accounts. Is there any solution? Yes.

    Open one account under your G’ship and other in your wife’s G’ship. You invest 500 Rs. in your account and 99500 Rs. in your G’ship account. Wife invest 500 Rs. in her own account and 99500 Rs. in her G’ship account. Now you may invest another 99500 Rs. in your wife’s account and she may invest in your own account. this way total 399000 Rs. ‘ll be invested in 4 accounts.

    I personally want to know, whay are you thinking for PPF alone for all your investments?



  2. Sumit says:


    There is a confusion regarding this – I have read articles that says that the total deposit limit to be 1 lac (including minor account), But I have seen several occasions where people deposited 3 lacs for himself and 2 kids. And then interest got credited in all the account at the end of the financial year. I have not read the the actual rule regarding this but haven’t seen any occasion where the bank came back to the account holder and he lost the interest though, otherways many people are getting interests for all PPF accounts (including minors) for sure.


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