Open PPF account for the safe future of children, know what are the terms and conditions

PPF Account for Children: Public Provident Fund (PPF) is the most popular investment option. Apart from being risk free, it also gives good returns. You can make your child’s future secure by opening a PPF account in his name. We will tell you what are the terms and conditions applicable for opening a PPF account for a child.

• An individual can open a PPF account in his own name.
• Apart from his PPF account, a person can open another PPF account in the name of his minor child.
• If the parents have two children, then the PPF account of one minor child can be opened by the mother and the PPF account of the other child by the father.
• Both the parents cannot open a minor PPF account in the name of the same child.

How much money can you deposit?

• A minimum deposit limit of Rs 500 and a maximum of Rs 5 lakh is applicable in a financial year for a minor’s PPF account as well.

Loan and partial withdrawal

• Minor PPF account also offers benefits like loan and partial withdrawal.
• However, for making a loan or partial withdrawal against a minor account, the guardian has to declare that the money is being withdrawn for the minor only.

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• When the child turns 18, an application will have to be made for his account status from minor to major.
• An adult child can handle his/her own account.

How to apply for PPF,

• First of all go to your nearest bank or post office.
• There you will have to take a form to open a PPF account.
• Carefully read and fill the information asked in the application form.
• Some documents will also be asked in the application form.
• Attach those documents with the application form and give it to the employee of the institute.
• Then check the employee application. After verifying the information properly, the account will be opened.

These documents will be required

• Parent’s KYC mandatory, child’s photo, child’s age proof, including Aadhar card and birth certificate

A PPF account can be opened in a post office or bank in one’s own name and on behalf of the minor through any other person. However, as per the rules, a PPF account cannot be opened in the name of a Hindu Undivided Family (HUF).

(Here ABP News is not giving any investment advice in any scheme. The information given here is for informational purpose only. Consult experts before depositing money in any scheme)

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