New Delhi: Inflation is increasing so is the cost of education, parents will have to start planning for their child’s future education expenses . There are multiple saving options, among which one is Public Provident Fund (PPF) account for minors.
With the current PPF rules, you can open a PPF account in the name of a minor. However, the annual contribution to PPF account of you and the minor child should not exceed Rs 1.50 lakh.
Everything you want to know about PPF account
• PPF account can be opened / operated in the absence of parents or guardians. Only one parent can open an account. Both mother and father cannot open an account on behalf of the same minor.
• Minor PPF account can be opened with an authorized post office or any designated bank branch to open PPF account.
• Required documents- The guardian will have to give his details along with the minor in the PPF account opening form. You can open an account with the KYC documents of the parent, photograph, age proof of the minor child (Aadhar card or birth certificate) along with the filled form.
• The minimum contribution in a financial year is Rs 500 while the maximum contribution is Rs 1.5 lakh. The annual contribution to PPF account of you and the minor child should not exceed Rs 1.50 lakh in a financial year.
• The interest earned in the Minor PPF account along with the maturity amount is tax-free for the account holder.