How to open a PPF account for a minor

There is no age limit for opening a PPF account. In the case of a minor, the account is operated by a guardian until the account holder turns 18.

A minor’s legal guardian or natural guardian (mother or father) who is a resident individual can open a PPF account on behalf of the minor. Only one of the guardians can open the account. It cannot be the case that both mother and father open the account separately on behalf of the same minor.

It can be opened with a post office or a designated bank branch authorised to open PPF accounts.

The guardian should provide his details along with the minor's in the PPF account opening form. The form should have the following documents:
Account opening KYC documents of the guardian with photograph
Age proof of the minor child (Aadhaar card or birth certificate)
Cheque for initial contribution to the PPF account of Rs 500 and above.

The minimum contribution in a financial year is Rs 500 whereas the maximum contribution is Rs 1.5 lakh.

Interest accrued along with the maturity amount are both tax free in the hands of the account holder. Contributions made to PPF account enjoy deduction of up to Rs 1.5 lakh each financial year under Section 80C. An individual with a PPF account of his own and as a guardian of his child can avail a maximum deduction of Rs 1.5 lakh taking both the accounts together. Each PPF account does not get a separate deduction limit of Rs 1.5 lakh.

1. PPF account can't be opened by grandparents for the minor child unless they are legal guardians after the death of the parents.
2. It is better to register a nominee while opening the PPF account.

(The content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.)