The Public Provident Fund (PPF) stands as a prominent savings instrument in India. It is widely used for its secure returns and tax benefits. It’s a go-to choice for long-term goals like retirement or your child’s education. However, many people wonder if they can have more than one PPF account? In this article, we break down the rules and clear up the confusion.
According to the Public Provident Fund Act of 1968, each person is allowed to open only one PPF account. This rule is strictly followed across all banks and post offices. If someone ends up with more than one account, the extra ones will be closed and only the deposited amount without any interest will be refunded.
Yes, it is! While you can’t have more than one PPF account in your own name, you can open one on behalf of your minor child. Just keep in mind, the total contribution to both accounts combined can’t go beyond Rs 1.5 lakh in a financial year.
For instance, if you invest Rs 1 lakh in your own PPF account, you can only put Rs 50,000 into your child’s account that year which keeps the total within the Rs 1.5 lakh annual limit.
No, joint PPF accounts are not allowed. A PPF account can only be held in one person’s name and it can’t be shared with a spouse, child, or anyone else.
NRIs cannot open new PPF accounts. However, if they had one before becoming an NRI they can continue contributing until the account matures (15 years), but they can’t extend it beyond that.
If you’ve accidentally opened two PPF accounts, don’t worry—just act quickly. Contact the bank, post office, or the Finance Ministry right away. They’ll close the extra account and return the money you deposited, but keep in mind, you won’t earn any interest on that amount.
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