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?

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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In this scheme, you get partial withdrawal, nomination benefits and many other facilities. But if an account holder dies before the maturity of the account, then what will happen to his account? Let us know what are the rules of EPFO ​​(Employee’s Provident Fund Organization) in such a situation.

What will happen in case of death of PF account holder? 

Whenever a PF account holder dies, his PF account remains operational until his nominee or legal heir withdraws the entire money from his account. This account cannot be continued. This will continue only as long as there is money in it. If more amount is deposited after the death of the subscriber, interest will not be earned on it. After the death of the account holder, the nominee does not need to wait for the completion of 15 years of the account, he can withdraw the money by filling the death claim form and necessary documents along with it.

How can the nominee withdraw money?

The nominee of the PF account holder can withdraw the entire money from the account by submitting the necessary documents. He has to give Form G and death certificate of the subscriber for this. In some cases, it also happens that the PF subscriber has not made any nominee. In such a situation, his legal heir can file a death claim.

But along with the death certificate, he will also have to provide a succession certificate or an attested copy of the Probate of Will from the court. Yes, there is also a rule that the legal heir can claim up to 1 lakh without a succession certificate. Also, even if the account holder has made someone else a nominee, the valid legal heir can claim the money in the PF account by putting in the succession certificate.

The nominee or the legal heir filing the death claim should know one thing that if there is any credit or loan outstanding on the account of the subscriber, then the claim will be deducted from the process and then the claimant will get the rest of the money.

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The interest rates on such savings schemes are reviewed by the government every quarter of the financial year. During the review in the last June quarter, no change was made by the government. This was worrying crores of investors.

You can start with a small amount Here you can start with less money and deposit up to 1.5 lakh rupees in a year. Here your money is completely safe. The government has kept the interest rate on PPF at 7.10 percent recently. Its rules have been changed in the last few years.

Money will be deposited only once every month

It is necessary to invest in PPF account in multiples of Rs 50. This amount should be at least Rs 500 or more annually. But in PPF account you can deposit up to 1.5 lakhs in the whole financial year. Only on this you get the benefit of tax exemption. Apart from this, you can deposit money in PPF account only once in a month.

Interest rate was cut

You can also take a loan against the balance in the PPF account. Recently, this interest rate has been reduced from 2 percent to 1 percent. After paying the principal amount of the loan, you will have to pay the interest in more than two installments. Interest is calculated on the 1st of every month.

Account will remain active even after 15 years

Even after investing for 15 years, if you are not interested in investing, then you can continue your PPF account without investment. It is not necessary to deposit money in this account after the completion of 15 years. You can withdraw money only once in a financial year by opting to extend the PPF account post maturity.

This form has to be filled to open an account

To open a PPF account, Form-1 has to be submitted instead of Form A. For extension of PPF account after 15 years (with deposit) one year before maturity, application has to be made in Form-4 instead of Form H.

How to get loan against PPF?

Loan is also available against PPF account. Its rule is that you can get a loan only 25 percent of the balance in your account before two years from the date of application. Understand in simple language, you applied for the loan on 31st March 2022. Two years before this (March 31, 2020), if there was 1 lakh rupees in the PPF account, then 25 percent i.e. 25 thousand loan can be got.

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