PPF Account for Your Child: Rules, Benefits & How to Open
Can You Open a PPF Account for Your Child?
Yes. A parent or legal guardian can open a PPF account in the name of a minor child. It's one of the best long-term savings tools for kids because the 15-year lock-in naturally aligns with their growth timeline. Open one when your child is born, and it matures right around the time they need money for college.
Key Rules for Minor PPF Accounts
Here are the rules you need to know:
The Combined Limit Strategy
Let's say you want to maximize both accounts. You have a few options:
**Option A: Split equally**
**Option B: Max your account first**
**Option C: Prioritize child's account**
There's no right answer. It depends on whether your priority is retirement or education funding. Use our [PPF calculator](/) to model each scenario.
80C Deduction on Child's PPF
Here's some good news: deposits made into your minor child's PPF account qualify for Section 80C deduction in your (the parent's) tax return. So you get the tax benefit regardless of which account you deposit into.
The 80C limit is Rs 1,50,000 total across all eligible instruments (PPF, ELSS, insurance, tuition fees, etc.), so plan accordingly.
What Happens When the Child Turns 18?
When the child reaches 18, the account must be converted from a minor account to a regular individual PPF account. The child (now an adult) takes full control. The process is simple:
If the child turns 18 before the 15-year maturity, they can continue operating it normally until maturity and then decide whether to extend.
How to Open a Minor PPF Account
You'll need:
You can open it at any post office or designated bank (SBI, Bank of India, ICICI, etc.). Some banks now allow online opening too, though the process for minor accounts is sometimes still partially offline.
Is It Worth It?
If you start a PPF for your newborn and deposit Rs 75,000/year for 15 years (splitting the limit with your own account), you'll have about Rs 20.3 lakh when the child is 15. Extend it for 5 more years with continued deposits, and you're looking at around Rs 33-35 lakh by the time they're 20 and heading to college.
That's a solid, risk-free education fund. Combine it with a [SIP in equity mutual funds](https://sip-calc-india.pages.dev) for a balanced approach to building your child's future corpus.