Clarification regarding PPF individual minor account

PPF Accounts in the Name of Minors

According to PPF account rules, a minor's account can only be opened through a guardian. However, in some cases, minors above 10 years old have opened PPF accounts directly without a guardian. These accounts are often opened by guardians to save taxes, as they can invest up to ₹1.5 lakhs separately in their own account and the minor's account.

However, when a PPF account is opened through a guardian, the rules state that the ₹1.5 lakh investment limit applies to the combined accounts, including the minor's account. Therefore, PPF accounts opened directly by minors without a guardian are in deviation of the rules.

Consequences of Deviation

PPF accounts opened directly by minors will earn interest at the savings rate until the minor turns 18. After that, the account will be treated as a regular PPF account.