PPF Minor Account: Invest in this scheme to get future benefits for your children | All you need to know
New Delhi | Jagran Business Desk: Amid the coronavirus crisis, the economy of the country has dropped at an unprecedented rate. Also, during this time of inflation, the cost of living has increased considerably. It has become difficult for the middle class and poor families to offer high-class education to their children. In this situation, it has become very important for the parents to plan how they will provide better education to their children. Although there are many options available in the market to secure the future for children. But, most of them do not provide tax benefits on guaranteed returns and contributions. However, PPF can grant you all these benefits
What is PPF?
Public Provident Fund (PPF) is a scheme that comes with many benefits along with EEE tax benefits and guaranteed returns. The PPF Minor account can be opened on the name of a minor and the guardians can access the account anytime. The scheme has a lock-in period of 15 years. Minor PPF account can be opened from the post office or bank branch authorized to open a PPF account. Local guardians and legal guardian (apart from mother and father) can also open a minor account for a child.
The user will have to submit a check of Rs 500 for the initial contribution to a minor's account along with an Aadhar card and birth certificate (for age proof). Also, KYC is done along with photo proof. Candidate must have to register the nominee's name while opening a minor PPF account. The guardian will also have to submit his or her documents for proof.
Minor PPF account requires a minimum contribution of Rs 500 in a financial year, while the maximum contribution amount is Rs 1.5 lakh. Currently, the interest rate on PPF is 7.1 percent per annum.
Posted By: Srishti Goel