Complete Guide to PPF Account for Minors in India (2026)

A savings plan allows an investor to build corpus funds to meet their child’s future financial requirements, along with insurance coverage. Most of them offer dual benefits of insurance & investment, where the child will get the amount deposited in the corpus in case of the policyholder’s sudden demise in a lump sum. Additionally, it also builds a corpus fund to meet the different milestones of your child. 

A Public Provident Fund is a type of a Saving Schemes that is backed by the Government of India, which offers attractive interest rates along with returns. The amount to be deposited in the fund ranges from INR 500 to INR 1,50,000 each financial year, either in EMIs or a lump sum. The amount deposited, maturity amount & interest amount are totally exempt from taxes.

Let us suppose a PPF account is opened by you for your child with INR 10,000 of monthly contribution, the corpus generated would be around 30 to 32 lakh at the end of 15 years.

Here, the interest amount on PPF is calculated on the minimum balance in the account between the 5^th & the last day of every month. Hence, if monthly contributions are to be made, ensure your PPF account has a credit with an investment amount on or before the 5^th of every month to gain an advantage. At the time of maturity, there are three options, namely:

• Extend your PPF account for a further block of 5 years & make further contributions by filling out Form 4 within 1 year from the maturity date. 
• Or withdraw the maturity amount & then get the count closed by filling out “Form-3” & deposit the passbook along with it.
• Or extend your PPF account for a further block of 5 years without making any further contributions, earning interest on the accumulated balance.

Objective of the PPF Account for Minors 

Some of the objectives of the PPF account for minors are as follows:

Long-term Wealt Creation:

It helps in building a huge corpus over a longer duration.

Financial Security of the Child:

It helps parents to contribute a regular deposit for their child’s future, letting them build a huge corpus. Hence, this offers financial security, enabling parents to fulfil their child’s future needs, such as higher studies, marriage, etc.

Tax Benefits:

A PPF allows a deduction of tax on the amount of premium paid, a maximum of up to INR 1.5 lakhs u/s 80C of the Income Tax Act, 1961.

Things to be considered before opening a PPF account for a Minor

The following is the list of things that should be kept in mind before opening a PPF account for a minor child:

• Start by depositing a minimum amount of INR 100, & no limit for the maximum amount to be deposited. 
• But, during a financial year, the minimum amount has to be INR 500, & the maximum amount can be INR 1.5 lakhs.
• A PPF account can only be opened in the name of a single child, i.e. it does not allow joint accounts to be opened.
• If parents or guardians are investing funds in a PPF for their minor child from their income, they should include the same in their income tax return under section 80C of the Income Tax Act, 1961 & can avail tax deductions.
• Once the minor attains majority, parents must submit an application to transfer the ownership of the account to the minor child. 
• Parents can get the PPF account closed prematurely in case the amount has been used in case of any medical emergency or higher education of the minor.
• This account allows withdrawals from the account once a period of 7 years has passed after the opening of the account. 

Hence, the ideal way is to open a PPF account for your minor child if you are looking for a Savings Plan for your child’s future to meet their education, career, or marriage requirements.

Steps to Open a PF Account for Minors

To open a PPF account for minors, parents are required to hold a savings account with the relevant bank. There are two ways to open a PPF account for minors, namely online & offline. Let us understand them in detail:

Online Mode

• Step 1: Log in to the PPF account online through the bank’s official website.
• Step 2: Select the option “Open a PPF account”.
• Step 3: Fill out the application form with all the relevant details & verify them.
• Step 4: Mention the amount to be deposited annually towards the PPF account. You can also opt for an auto debit facility from your savings account towards the PPF account.
• Step 5: After reviewing, submit the application.
• Step 6: An OTP will be received on your registered mobile number to authorise the transaction. 
• Step 7: Once the OTP is entered, an SMS will be received along with an email for successful account creation.

Offline Mode

• Step 1: It is compulsory to hold a savings account with the relevant bank to open a PPF account. 
• Step 2: Gather all the relevant documents to get a PPF account opened.
• Step 3: Visit the nearest bank branch to open a PPF account.
• Step 4: Fill out the account opening form & submit it along with the relevant documents required.

Conclusion

PPF for minors is a great initiative started by the Government of India to invest funds for the financial future of your children. This plan is less risky as it is backed by the government, & allows either parent or a guardian to open the account on behalf of the minor. It helps mobilise your small savings by investing to get prompt returns along with tax benefits. It lets children learn the importance of savings at an early age, which will lead to building a strong financial future for themselves.