PPF account for children: All parents want to secure the future of their child, work for them and save some of it, although there is no age restriction to open a PPF account, but now a 3-year-old child can also take advantage of opening this account.
Parents work hard to secure their children’s future. A portion of your earnings is correct, but you save it. If you also want your child to be fit for a good education, marriage, or when he turns 18, he can fend for himself. In such a situation, you can open a PPF account in your child’s name and invest in it. In this, by depositing Rs 10 thousand every month, you can get Rs 32 lakh when the child turns 18 years old. This amount has been calculated at 15 years based on the age of 3 years of the child.
If you are thinking of investing money for children, then the PPF account is a better option. Although there is no age restriction to open a PPF account, you can open a PPF (Public Provident Fund) account at any age of children. In this, by depositing a fixed amount every month or every year, the child can benefit.
This PPF account can only be managed by one parent. If there are two children, one will be in charge of the mother and the other of the father. After reaching the age of 18, the child can manage that account on their own.
How to open a PPF account
To open a PPF account, go to any authorized bank branch and complete Form-1. As an address, you will need to provide passport, driver’s license, voter ID, Aadhar card, ration card. Apart from this, you can deliver a photocopy of the Elector’s Credential, PAN Credential, Passport for identity card.
Along with this, you will need to provide the child’s birth certificate and a passport size photograph. You can open this account at 500 rupees. After this PPF, a booklet will be issued in your child’s name. In this, you can take advantage of this by depositing a fixed amount every month, quarter, semi-annually or yearly depending on your capacity.
You have to do this to get 32 lakh rupees
If your child is 3 years old and you have opened a PPF account in her name, you will need to deposit Rs 10 thousand every month to get Rs 32 lakh. Currently, the interest rate on the PPF account is 7.1 percent.
If you deposit 10 thousand rupees every month until the child is 18 years old, that is, until the age of 15, according to the compound interest of 7.1 percent, you will get 32 lakh 16 thousand 241 rupees. This amount will be available only after the child turns 18 years old. If you deposit less each month or yearly, you will get less money in the end.