If you have children, be sure to use PPF, a fund of lakhs will be available for the children.

New Delhi. Public Provident Fund ie PPF is a very popular savings plan in the country. This is a safe way to invest your savings with guaranteed returns. This also gives you a tax exemption. But in these a person can only invest Rs 1.5 lakh during the whole financial year. However, married people can open an account in PPF in the name of their spouse or children. This way you can get more benefits from PPF.

Let us tell you that PPF is currently compounded at an annual rate of 7.1 percent. Which is considered very good in terms of investment security. If you want to benefit more from PDF, you can also open an account on behalf of your children. With its help, you can create a good foundation for the future of children.

Also read – If you miss paying the monthly SIP rate, what is the impact on the fund?

Both husband and wife can open an account for one child each.
According to Employees Provident Fund Organization (EPFO) rules, an individual can only open one PPF account in their name. However, you can also open an account on behalf of your children, but it is important to note that a parent can only open a PPF account on behalf of a child. If someone has two children, one minor child’s PPF account can be opened by the other’s mother and father. This way, by depositing your savings, you can take advantage of many of the benefits that PPF gives you.

This is the investment limit
If you open a PPF account on behalf of your children, you can deposit a minimum of 500 rupees and a maximum of 1.5 lakh in a financial year. But if the parents also have their own PPF account, the maximum investment limit in both their own account and the child’s PPF account remains the same at Rs 1.5 lakh per year. Please advise that the PPF account is due in 15 years. After 15 years, you can withdraw all money from it. At the same time, you also get the option to extend it for 5-5 years.

This is how a child PPF account can be opened
You need some documents to open a PPF account on behalf of a child. This includes the child’s photo, child’s proof of age (Aadhaar or Birth Certificate), guardian’s KYC documents and a bank check for the initial contribution, etc. Once the child has reached the age of 18, a change of account status must be requested. After that, he can manage his account himself.

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