Public Provident Fund (PPF) is one of the most popular and trusted savings schemes in India. The scheme offers safe returns as well as tax benefits, making it a great option for long-term goals like retirement or children’s future.
Although lakhs of people invest in it, a question that often comes up is whether a person can have more than one PPF account in his name?
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What do the government rules say? Know important information and new updates related to PPF account in this news—
Can a person have two PPF accounts?
According to the government rules, any person can open only one PPF account in his name . Even if you try to open the account in different banks or post offices, this rule applies everywhere.
If someone opens another account in his name by mistake, it will be considered invalid. In such a case, the amount deposited in that account will be returned to you, but no interest will be given on it.
Can I open a PPF account in the name of children?
Yes, you can open a PPF account in the name of a minor child. This account is operated by the guardian (parent or legal guardian). However, there is a necessary limit with this facility.
A maximum of ₹1.5 lakh can be deposited in a financial year in both parent and child accounts combined.
For example:
If you have deposited ₹1 lakh in your account, then in the same year you can deposit only ₹50,000 in your child’s PPF account.
You will not get a joint account, if you open two accounts then you will not get any interest
Investors need to be cautious about the new rules regarding Public Provident Fund (PPF). This scheme is completely individual, that is, you cannot open a joint account with anyone in it – neither with your spouse nor with your child.
As per the government guidelines, a PPF account can be opened only in the name of one person.
This rule is so strict that even a joint account between husband-wife or parent-child is not valid.
If a PPF account is opened in the name of a minor child, only the child’s name is registered as the account holder. The guardian only operates the account—but the account will be considered in the name of the child only.
Opened a second PPF account by mistake? Don’t panic, do this important work immediately
If you have accidentally opened two PPF accounts, there is no need to panic-but it is very important to take the right steps at the right time.
According to government rules, only one PPF account is valid in the name of a person. If for some reason you have opened another account—be it in another bank or post office—it will be considered a violation of the rules.
What to do if a mistake has been made?
- First of all, go to the bank or post office where the second account is opened and inform them immediately.
- If necessary, you can also contact the Finance Ministry.
- Usually in such a situation the other account is closed and the money deposited in it is returned to you.
- But keep in mind—you won’t earn any interest on the money deposited in the second account.
Why is PPF so popular?
- This is a government scheme, which gives guaranteed returns.
- Investments can be made from ₹500 to ₹1.5 lakh annually.
- The interest rate is currently 7.10% per annum (for FY 2024-25).
- The entire amount of investment, interest and maturity is tax free (EEE status).
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