PPF account will make your child a Lakhpati:Open account in your child’s name, know the rules regarding it

If you are planning to start investing in your child’s name, you can invest in the Public Provident Fund (PPF) scheme. Currently, this scheme is offering 7.1% annual interest. You can easily create a fund of lakhs for your child by opening a PPF account in their name. However, there are some rules for this. We are telling you about those rules. One person can open a PPF account in only one child’s name One person can open only one PPF account in their own name. However, a person can open another PPF account in the name of a minor child in addition to their own PPF account. But the important thing to note here is that one guardian can open a PPF account in only one child’s name. According to the rules, if someone has two children, then the mother can open a PPF account for one minor child and the father for the other. How much money can you deposit? For a minor’s PPF account as well, a deposit limit of minimum 500 and maximum 1.5 lakh rupees per financial year is applicable. However, if the parents have their own PPF account, then the maximum deposit limit combining both their own account and the minor’s PPF account will remain 1.5 lakh rupees annually. Child can handle their account upon turning 18 years old After the minor child turns 18 years old, an application needs to be submitted to change the account status from minor to major. After this, the child who has become an adult can handle their account themselves. Maturity period is 15 years PPF account matures in 15 years. If you wish, you can withdraw the entire amount after maturity. However, if you don’t need the money, it can be extended for 5-5 years. Tax Exemption Benefit Available on This PPF comes under the EEE category of Income Tax. This means you get the benefit of tax exemption on the entire investment made in the scheme. Additionally, no tax has to be paid on the interest earned from investment in this scheme and the entire investment amount. Large Fund Will Be Built Easily Through this scheme, if you invest 1 thousand rupees every month, you will get 3 lakh 18 thousand rupees after 15 years. Similarly, if you invest 2 thousand rupees per month, you will get 6 lakh 37 thousand rupees after 15 years. Know here how much benefit you will get by investing in this. Who can open a PPF account? Any person can open this account in their name at any post office or bank. Apart from this, an account can also be opened by another person on behalf of a minor.