0 0
PPF Investment: Want to invest for your child's future, PPF is a better option – News in Headlines
Business

PPF Investment: Want to invest for your child’s future, PPF is a better option

Read Time:1 Minute, 44 Second

With the increasing cost of education and life, parents should ensure in advance that their children get quality education. There are many products available in the market that can help parents save money for their child’s future. Most of them are guaranteed returns. But, Public Provident Fund (PPF) is a scheme that offers EEE tax benefit. 

However, it has a very long lock-in period of 15 years. This does not mean that parents cannot choose PPF as the child’s investment choice. PPF account is very good for minors. Minor PPF account authorized to open PPF account can be opened with post office or designated bank branch. Only one parent can open an account. Both mother and father cannot open an account on behalf of the same minor. A PPF account cannot be opened by the grandparents for the minor child until he / she is not a legal guardian after the parent’s death.

Required documents

The guardian will have to give his details along with the minor in the PPF account opening form. KYC documents of parents, photograph, age proof of minor child (Aadhar card or birth certificate) along with the filled form, PPF account will have to be deposited at Rs 500. It is better to register a nominee while opening a PPF account.

Minimum and maximum investment

The minimum contribution in a financial year is Rs 500 while the maximum contribution is Rs 1.5 lakh. The annual contribution to PPF account of you and the minor child should not exceed Rs 1.50 lakh. The PPF interest rate is Enum at 7.1%.

Short lock-in period

If you open a PPF account for your child when you are young, the lock-in period will be greatly reduced by the time they are adults. For example, when the child is 10 years old. If you start investing in PPF in the name of your minor child, then this PPF account will complete the lock-in period of 15 years, till the child is 25-26 years old. Happens.

Happy
0 0 %
Sad
0 0 %
Excited
0 0 %
Sleepy
0 0 %
Angry
0 0 %
Surprise
0 0 %
Divya Sharma

Editor in Chief with Newsinheadlines, Author, Cover Story around Business and Entrepreneurship.

Recent Posts

Gwyneth Paltrow Biography | Age, Relationships, Career

Gwyneth Paltrow is an American actress and lifestyle entrepreneur, widely recognized for her portrayals of…

18 hours ago

Jake Paul and Mike Tyson officially banned from boxing after controversial fight

Jake Paul and Mike Tyson have both been handed 24-day suspensions by the Texas Department…

19 hours ago

Ross and Sacha’s Shocking Breakup After MAFS UK 2024: Sacha Opens Up About Their Relationship

One of the most shocking revelations from Married at First Sight UK 2024, aside from…

2 days ago

Bomb Cyclone Sweeps Through the Northwest US, Causing Widespread Damage

A powerful storm system struck the northwest US on Tuesday evening, bringing widespread power outages,…

3 days ago

Knox Jolie-Pitt’s striking Resemblance to Dad Brad Pitt Steals the Spotlight

Brad Pitt and Angelina Jolie's highly publicized and tumultuous relationship continues to make headlines, even…

5 days ago

Family Searches for Missing Hannah Kobayashi Last Seen at LAX and The Grove

The family of Hannah Kobayashi, a 30-year-old woman from Maui, Hawaii, is desperately seeking answers…

5 days ago