PPF Account: If you invest under PPF, you get tax exemption under 80C on investment up to Rs 1.5 lakh. You can invest in it for 15 years.
PPF Account: Talking about small saving schemes, Public Provident Fund (PPF) is one of the most preferred savings schemes among Indians. By investing in it, you not only get safe returns but also get tax benefits. Therefore, it is a good option for investment keeping in mind retirement or children’s future. But can you open more than one PPF account? This is a question whose answer is known to very few people. Let’s know the answer-
One person one account
According to government rules, you can have only one PPF account in your name. Even if you want, you cannot open another PPF account in your name by going to different post offices or banks. If you open another account, that account will be considered invalid. You will get back the amount deposited in the second account, but you will not get any interest on it.
Can I open a PPF account for my children?
You cannot open more than one PPF account for yourself. But you can open a PPF account for your minor child. In this case, you will be the guardian of the account. But one small rule has to be kept in mind. A total of not more than Rs 1.5 lakh can be deposited in your and your child’s PPF account every year. For example, if you deposit Rs 1 lakh in your account, then you can deposit only Rs 50,000 in your child’s account in the same year.
No joint account
A PPF account is a completely personal account. This means that you cannot open a joint account with your life partner or anyone else, nor with a minor. The child’s PPF account will also have only the child’s name and you will manage it as the guardian.
What to do if you accidentally opened a second account?
If you have accidentally opened two PPF accounts, there is no need to panic but take action as quickly as possible. Inform your bank or post office about this immediately. They will usually close the second account and return the amount deposited in it to you. But remember, you will not get any kind of interest on this amount.
Benefits of PPF
PPF is a safe and tax-free investment option. It gives interest at the rate of 7.1% every year (interest rate may change). Also, tax exemption is available on the amount deposited, interest and maturity amount. PPF account is for 15 years, which can later be extended for 5-5 years. Every year you can deposit a minimum of Rs 500 and a maximum of Rs 1.5 lakh.
