Can both parents invest Rs 3 lakh in child's PPF account as combined contribution? What is the maximum limit? Explained

New Delhi: You can open a Public Provident Fund (PPF) account for your child online or by visiting a bank or post office as their legal guardian. You will need to submit your child's birth certificate, your KYC documents and a minimum deposit of Rs 500 to open the account.

Public Provident Fund investment
The PPF is a popular savings scheme in India. It is backed by the government, offers tax benefits and helps people save money regularly for the long term. These features make PPF a useful option for those who want to build their savings over time.

PPF account opening
You can open one PPF account in your own name and another for your child. However, you cannot open two PPF accounts in your own name. As a parent or legal guardian, you can open and manage a PPF account on behalf of your child.

PPF account joint investment
It is important to remember that the total amount you deposit in both your account and your child’s PPF account together cannot exceed Rs 1.5 lakh in a financial year.

Can parents jointly invest 3 lakh in child's PPF account?
Both parents cannot deposit Rs 3 lakhs in their child's PPF account in a single financial year. The maximum yearly deposit allowed in a minor child's PPF account is Rs 1.5 lakh. Even if both parents contribute, their combined deposit must stay within this limit. Whether one parent deposits the full amount or both parents contribute separately, the total amount cannot exceed Rs 1.5 lakh in a financial year.

PPF Eligibility
* An individual can open a PPF account in their own name.
* An individual can open one account on behalf of each minor or a person with mental illness or intellectual disability under their guardianship. However only one PPF account can be opened for each such person, regardless of who the guardian is.
* Joint PPF accounts are not allowed under this scheme.
* An individual can open a PPF account online through the e-banking facility. It is to be noted that a Post Office Savings Account is a prerequisite for availing an internet banking facility. For more details, visit www.ebanking.indiapost.gov.in

PPF minimum and maximum deposit
* The minimum deposit is Rs 500 in a financial year and the maximum deposit is Rs 1.50 lakh in a financial year.
* The maximum limit of Rs 1.50 lakh is inclusive of the deposits made in his/her own account and in the account opened on behalf of a minor.
* Amount can be deposited in any number of installments in a FY in multiples of Rs 50 and maximum up to Rs 1.50 lakh.
* Subsequent deposits can be made through the internet banking option (NEFT/RTGS) from another bank.
* Deposits qualify for deduction under section 80C of the Income Tax Act.

PPF withdrawal rules
* You can withdraw money from your PF account after five years have passed from the end of the financial year in which you opened it. The maximum amount you can withdraw is 50 percent of the eligible balance, calculated using the rules for the fourth year before the withdrawal year or the previous year, whichever is lower.
* If you have an outstanding loan against your PF account, you must repay the loan and the applicable interest before making a withdrawal.
* You cannot withdraw money from a discontinued PPF account until it is reactivated.