PPF For A Child: How To Open Kids’ PPF Account?

Last Updated: 3 Oct 2025

A Public Provident Fund, or PPF in short, is a long-term savings scheme devised by the government to help Indian citizens invest and build a corpus for the long term. The key advantage of a PPF is that the interest earned and the fund after maturity is completely tax-free.

PPF for Child

According to the set rules, every eligible Indian citizen can open only one PPF account. However, a parent can open a PPF account for their minor child as their legal guardian, serving as an excellent source for the child’s higher education or marriage.

Here is how you can open a PPF account for your child, along with some key things that you should know about a child’s PPF account:

Who Is Eligible To Open A PPF Account For The Minor?

Any parent or legal guardian can open a Public Provident Fund account on behalf of a minor, provided that they are resident citizens of India. However, only one parent can open a PPF account in the name of the minor children.

Objective Of The PPF Account for Minors

The PPF account for minors is designed to encourage long-term savings and financial security for children. Some of the key objectives of the PPF Account for kids are as follows:

• Long-term Wealth Creation: It assists in building up a large corpus over a long term of investment.
• Financial Security of the Child: It assists parents or guardians to put in a regular deposit on behalf of the child, which will aid in establishing a strong financial base for future requirements like education or marriage.
• Tax Benefits: The investments made to the extent of ₹1.5 lakh annually are entitled to tax deduction under Section 80C of the Income Tax Act.

Where Can One Apply For A PPF Account For Minors?

A parent or guardian can open a PPF account at any designated bank or any post office authorised to receive applications for PPF.

Documents Required:

• Duly filled PPF form, including details of both the parent or guardian as well as the minor.
• KYC documents of the legal guardian or parent, including ID proof and address proof like passport, PAN card, Aadhar card etc.
• Photograph of guardian or parent.
• Age proof of the minor
• An initial investment of a minimum of Rs. 100/- via cheque.

Things To Be Considered Before Opening The PPF Account Of A Minor

Opening a PPF for minor is a prudent financial decision. However, before proceeding, parents or guardians should understand the rules, limitations and implications associated with such accounts. In this regard, some of the key factors to consider are as follows:

• Eligibility: A minor can open PPF account, but it has to be opened and operated by parents or guardians on their behalf.
• Deposit Limit: The combined deposit limit in the PPF accounts of the guardian and the minor is capped at ₹1.5 lakh per annum.
• Nomination Facility: Nomination is not allowed for a minor’s PPF account. Once the minor becomes an adult, they can nominate someone for their account.
• Tenure and Maturity: The PPF account consists of a 15-year lock-in period. This account matures after 15 years from the end of the financial year in which it was opened.
• Withdrawals: Partial withdrawals can be availed, but these are subject to specific conditions that are allowed only after a specific period.

PPF Account For Children: Is It A Good Option?

If you want to invest in a financial instrument with low risk, the government-backed Public Provident Fund is the way to go. If you’re a family looking to set up funds for the welfare of your children, then opening a PPF account on behalf of your children is one of the best ways to gather funds for their future expenses. Whether it is their higher education, marriage, or simply a way to create a backup fund, a PPF is the easiest and most convenient investment.

Conclusion

Opening a PPF account for your child is a smart and long-term financial decision. It not only ensures disciplined savings but also offers tax benefits and financial security for future needs. With its low-risk investment nature and government backing, a child’s PPF account can serve as a reliable investment option. But you have to follow certain rules and consider its limitations before proceeding to make the most of this opportunity.

Frequently Asked Questions

1. What is the interest rate for minor PPF accounts?

The rate of interest charged on opening a PPF account for a minor is the same as that of a standard PPF account. It is currently giving an approximate interest per annum of 7.1% (as of FY 2025-26), which is compounded on an annual basis and set by the Government of India after every quarter.

2. Which documents are required for a PPF account for minors?

Documents required for PPF account for minor include age proof, birth certificate, and the KYC papers, such as photocopies of the Aadhaar card. Moreover, you might also require passport-size photos and KYC documents of the guardians and an opening deposit according to your application.

3. What happens to the PPF account when the child turns 18?

Once your child turns 18, the PPF account ownership is transferred to their name. As adults, they have the option of continuing or closing the account upon maturity.

4. What is the minimum and maximum deposit limit for a minor’s PPF account?

Minimum annual deposit to open a PPF is ₹500 and maximum is ₹1.5 lakh, including guardian’s own PPF account contributions. Any deposit beyond this amount is unlikely to receive any interest.