How to open an PPF account for minors?
- PPF account for minors can be opened at any designated banks or post offices.
- Fill out the PPF account opening form with details of the minor and the guardian.
- Submit necessarily Know Your Customer (KYC) documents of both the minor and the guardian.
- Deposit the initial amount. Minimum deposit starts from Rs. 500 in a financial year and maximum deposit is Rs. 1.5 lakh in a FY.
Also read: TDS Rate Chart for FY 2024-25
Documents required to open a minor’s PPF account
The parents/guardian of the minor child should provide the following documents:
- Details of the guardian and minor in the account opening form
- KYC documents (Passport, Voter ID, Aadhar card, Driving license) of the guardian for opening account.
- Guardians photograph.
- Age proof (Aadhaar Card or birth certificate) of the minor child.
- A cheque for initial contribution of Rs. 500 or more in the PPF account.
Also read: NPS vs PPF
Eligibility criteria for opening a PPF account for minors
- The minor must be an Indian resident to be eligible for a PPF account.
- Only one parent or legal guardian is allowed to open and manage the minor’s PPF account.
- A nominee must be added at the time of opening the account.
Rules for a minor’s PPF account
- A PPF account for a minor can only be opened and handled by a parent or legal guardian.
- Joint PPF accounts between a minor and an adult are not permitted.
- Grandparents can open the account only if they become legal guardians after the parents’ demise.
- Deposits can be made in one lump sum or through multiple instalments.
- The total yearly deposit allowed in the minor’s account is ₹1.5 lakh.
- A nominee may be added when the account is created.
Things to be considered before opening the PPF account of a minor
- A PPF account for a minor can be opened with a minimum deposit of Rs. 100. The yearly contribution should not be less than Rs. 500, and the maximum permissible limit is ₹1.5 lakh.
- If the contributions to the minor’s PPF account are made from the parent’s or guardian’s income, they are eligible for tax benefits under Section 80C of the Income Tax Act.
- Once the minor turns 18, the account must be transferred to their name. This requires submitting an application along with the necessary documents and the signature of the now-adult account holder. The guardian who initially opened the account must also attest to the application.
- In specific cases, the PPF account of a minor may be closed after five years, but only if the funds are to be used for the account holder’s medical treatment. Premature closure is also allowed if the funds are required for the minor’s higher education.
- Additionally, a loan can be availed against the minor’s PPF account, provided the guardian clearly states that the funds will be used solely for the benefit of the minor
Conclusion
Opening a PPF Account for Minors gives parents or guardians a reliable way to build long-term savings for their child’s future — whether for higher education, a wedding, or other major expenses. Under the scheme, a parent or an authorised legal guardian can open the account on behalf of the child and operate it until the child turns 18. The annual investment can range from as little as ₹500 up to a maximum of Rs. 1.5 lakh, and deposits can be made in lump sum or installments throughout the year.
Since PPF is backed by the government, the funds are secure and grow with a guaranteed return. A nominee is required when the account is opened, adding a layer of protection. Once the minor becomes an adult, the account can be transferred to their name. With its long-term maturity period of 15 years (extendable further), this plan helps instil disciplined savings while offering tax-efficient growth.
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