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Children's Day 2021: Want to open a PPF account for your child? Know these details
PPF Account for Minors: The Public Provident Fund (PPF) Scheme offers an investment avenue with decent returns coupled with income tax benefits. Now, with Children's Day approaching on November 14, many parents may think of opening a PPF account for their child to ensure their security in future
PPF Account for Minors: The Public Provident Fund (PPF) Scheme offers an investment avenue with decent returns coupled with income tax benefits. Now, with Children's Day approaching on November 14, many parents may think of opening a PPF account for their child to ensure their security in future.
Can a PPF account be opened for a minor?
It must be noted that any residential individual can open account for himself/herself and on behalf of a minor or a person of unsound mind as a guardian. One must remember that no a minor cannot open a PPF account. However, a PPF account on behalf of a minor can be opened by either father or mother. However, both the parents cannot open a separate account for the same minor. An individual may open one PPF account on behalf of each minor of whom he is the guardian.
In case, neither parent is alive or where the only living parent is incapable of acting, a person entitled under the law for the time being in force to have care of the property of minor can open a PPF account on behalf of the such a minor.
Minimum and maximum investment
Now, one must be aware of the limit of investment for PPF. One must note that a minimum Investment Rs.500 and maximum investment is Rs.150000 in a financial year are the minimum and maximum limits of investment in PPF.
Can a minor be a nominee?
The investors must note know that nomination is available under PPF. Furthermore, nomination can be made in favour of one or more persons. However, nomination cannot be made in PPF accounts opened in the name of the minor.
It must also be remembered that nomination can be made in favour of a minor. In case, any nominee is a minor, the subscriber may appoint any person to receive the amount due under the account in the event of the death of the subscriber during the minority of the nominee.
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