PPF for children: Start with ₹500, follow key rules and build a substantial fund over 15 years

27 August, 2026
PPF for children: Start with ₹500, follow key rules and build a substantial fund over 15 years

Winning Bizness Desk

PPF for children: Start with ₹500, follow key rules and build a substantial fund over 15 years

If you are planning to start saving for your child’s future, the Public Provident Fund (PPF) can be a useful long-term option. The scheme currently offers 7.1% annual interest and allows parents or legal guardians to open an account in a minor child’s name. With disciplined contributions, it can help build a sizeable corpus over time.

Key points parents should know before opening

  • A minor’s PPF account can be opened and operated only by a parent or legal guardian.
  • An individual can have one PPF account in their own name and one additional account for a minor child.
  • A parent can open a PPF account for only one child.

There are specific rules when parents have more than one child. If a family has two minor children, the mother can open a PPF account for one child while the father can open an account for the other. This arrangement is subject to the applicable PPF rules.

Annual deposit limits remain the same for minors

A minimum of ₹500 and a maximum of ₹1.5 lakh can be deposited into a minor’s PPF account in a financial year. However, if the parent also has a PPF account, the combined deposits in the parent’s account and the minor’s account cannot exceed ₹1.5 lakh in a year.

For example, if a parent deposits ₹1 lakh into their own PPF account and ₹80,000 into the child’s account, the combined deposit becomes ₹1.8 lakh. Only ₹1.5 lakh will qualify under the PPF limit. The excess ₹30,000 will neither earn PPF interest nor qualify for tax benefits.

The child can take control after turning 18

Once the minor turns 18, an application has to be submitted to change the account’s status from minor to major. After the formal process is completed, the account holder can operate the PPF account independently.

PPF matures after 15 years, with extension available

A PPF account has a maturity period of 15 years. At maturity, the entire amount can be withdrawn. If the money is not immediately required, the account can also be extended in blocks of five years.

Tax benefits make PPF attractive for long-term savings

PPF falls under the EEE, or Exempt-Exempt-Exempt, tax category. Contributions qualify for tax benefits under Section 80C under the old income-tax regime, subject to the applicable overall limit. The interest earned and the maturity amount are also tax-free. Taxpayers opting for the new regime cannot claim the Section 80C benefit.

A modest monthly contribution can still create a sizeable corpus

  • ₹1,000 a month can grow to around ₹3.18 lakh in 15 years.
  • ₹2,000 a month can grow to around ₹6.37 lakh over 15 years.
  • PPF accounts can be opened at post offices or banks.
  • A minor’s account can be opened and managed on the child’s behalf by an eligible parent or legal guardian.