Winning Bizness Desk

Mumbai. Public Provident Fund (PPF) is such a government scheme that everyone is eager to open and everyone also recommends it. Some of its provisions are such that you can secure the future of your child as well. In this connection, if you are planning to start investing in the name of the child, then you can invest in the Public Provident Fund (PPF) scheme. You can easily create a fund of lakhs by opening a PPF account in the name of your child. But it has some special rules. We are telling you about those rules. A person can open only one PPF account in his name. However, a person can open another PPF account in the name of a minor child in addition to his PPF account. But the point to note here is that a guardian can open a PPF account in the name of only one child. According to the rules, if someone has two children, then the PPF account of one minor child can be opened by the mother and the father of the other. Both parents cannot open a minor PPF account in the name of the same child. A PPF account can be opened in any post office or bank in his own name and by any other person on behalf of the minor. However, as per the rules, a PPF account cannot be opened in the name of a Hindu Undivided Family (HUF).

Maximum deposit limit Rs 1.5 lakh per annum

Currently 7.1% annual interest is being given in this scheme. The minimum deposit limit of Rs 500 and maximum Rs 1.5 lakh in a financial year is applicable for the PPF account of a minor as well. But if the parents also have their own PPF account, then the maximum deposit limit will remain the same at Rs 1.5 lakh per annum, including both their own account and the PPF account of the minor. After the minor child turns 18, an application has to be given to change the status of the account from minor to major. After this, the child who has become an adult can handle his account on his own. In special cases, the account can be closed after completion of 5 years. For example, when money is needed for the higher education of the child or for the treatment of any disease etc.

PPF comes under the category of EEE

PPF account matures in 15 years. If you want, you can withdraw the entire money after maturity. However, if you do not need money then it can be extended for 5-5 years. PPF comes under the category of EEE. That is, you get the benefit of tax exemption on the entire investment made in the scheme. Along with this, no tax has to be paid on the interest received from the investment and also on the entire amount of investment in this scheme. The rate of interest available on PPF investment varies every three months. PPF accounts cannot be attached by any court or order at the time of debt or other liability. If you invest 1 thousand rupees every month through this scheme, then after 15 years you will get 3 lakh 18 thousand rupees. On the other hand, if you invest 2 thousand rupees a month, then after 15 years you will get 6 lakh 37 thousand rupees. Know here how much you will benefit by investing in it.