The Public Provident Fund (PPF) stands as a favored long-term savings option in India, backed by the government. Investors frequently ask if multiple accounts can boost tax-saving investments. Regulations strictly limit individuals to one PPF account in their own name.
Strict One-Account Policy
Authorities prohibit opening additional PPF accounts at various banks or post offices. Authorities identify duplicate accounts as irregular, often requiring closure. Such extra accounts typically forfeit interest payments.
Exceptions for Minors
Parents or guardians may open a distinct PPF account for minor children. Combined contributions to the individual’s account and the minor’s cannot surpass Rs 1.5 lakh annually, aligning with Section 80C limits.
Key Features and Benefits
PPF accounts mature after 15 years, delivering tax-free interest and guaranteed returns. Deposits range from a minimum of Rs 500 to a maximum of Rs 1.5 lakh per year. This scheme supports retirement planning and tax optimization effectively.
In essence, individuals hold one personal PPF account, with options for family minors under prescribed limits.
