Is it possible for a minor child to have multiple PPF accounts?

Can father and mother open separate PPF accounts of their PAN number of one minor child. - Anonymous

According to the PPF rules, an individual can have only one PPF account in their name.

Since there are no age restrictions, a PPF account can be opened in the name of a minor child. The account can be opened either by the father, mother, or guardian. But, one child can have only one PPF account.

What is PPF or Public Provident Fund?
The Public Provident Fund (PPF) is a long-term savings instrument established by the central government. It offers tax benefits on contributions as well as withdrawals after the lock-in period. PPF has been a go-to investment avenue for many Indians because of its assured returns and tax benefits. Learn more about PPF.

Investment limit in PPF
If you're investing in the child's account, the minimum investment is Rs 500 and the maximum is Rs 1.50 lakh. Do note that the total amount you can invest in your name and in the name of your minor child combined cannot exceed Rs 1.50 lakh in a financial year. That means the contribution to your PPF account and your child's PPF account cannot go beyond Rs 1.5 lakh. So, plan your investment accordingly. You also can use these investments to reduce your tax liability under Section 80C of The Income Tax Act.

Suppose you have two minor children, you can open an account in each child's name. Do note that the overall investment limit still remains the same, i.e., Rs 1.50 lakh. So, if you wish to invest more than Rs 1.50 lakh in PPF, your spouse can open a PPF account in his/her name and invest in the second child.

Is PPF the right instrument to invest in for a child?
Since the child is still young, is PPF the right option? Although you can make partial withdrawals, you can do it only after five years excluding the year of account opening. Moreover, you can't invest more than Rs 1.50 lakh. These can be limiting, so, we recommend looking at other options such as equity mutual funds that provide better returns in the long run.

If there's a girl child and you're looking for a safer avenue that is backed by the government, you can go for the Sukanya Samriddhi Yojana scheme, which is a tax-free small savings scheme.

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