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PPF Account Age Limit
PPF accounts can be started at any time and by anyone. There is no age limit to open a PPF account as long as the contributions to PPF account are made at regular intervals of time to earn healthy returns in the future. Interested individuals should start opening accounts sooner rather than later because opening an account of this nature early on in the life of an individual opens up the potential for a more secure future.
With regards to PPF accounts for children, parents must start a PPF account as soon as the baby is born. For adults who have completed education and do not have a PPF account, the best time to open one would be when you get your first job. PPF accounts can also be opened after your marriage if you wish to gain access to a sustained investment option for the future. With that being said, there is no particular time that can be adjudged as right so far as PPFs are concerned. Individuals can open an account at any time they find convenient.
PPF Account for Minors
PPF accounts for minors can help in saving money following the birth of a child. For example, if you have a baby and want to open a PPF account in its name, you will have to invest a certain sum every year. You can begin with Rs. 2,00,000 in this case. By the time your child is midway through adolescence, the amount of money in the account will have risen to around Rs. 30,00,000, which can then be used to fund their higher studies. But if they don’t need the money immediately, the account can remain as is and you can continue to invest more money, thus increasing savings for future commitments or emergencies.
Contributions towards PPF need to be made on an annual basis. Therefore, it does not burn a hole in the investors’ pockets. And the promise of attractive returns makes it a worthy investment option.
Eligibility to Open PPF Account
Any individual who is a resident of India can only open a PPF account. NRIs are not eligible to open PPF accounts. However, a resident Indian who has become an NRI after opening a PPF account can continue the account till maturity. Additionally, parents/guardians can also open PPF accounts for their minor children. Opening of joint accounts and multiple accounts are not allowed.
PPF Tenure
PPF account matures after the expiry of 15 years from the end of the financial year in which the account was opened. For example, if the PPF account was opened on Jan 1, 2015, it will mature on March 31, 2030, i.e. 15 years from March 31, 2015. At maturity, you can extend the PPF account indefinitely in blocks of 5 years at a time.
About PPF
Public Provident Fund (PPF) is one of the most popular investment options for creating a long-term retirement fund. It carries low risk, moderate returns, and added tax benefits and these make PPF an attractive option for investment. PPF has a 7.1% rate of assured returns and it fares at par with nominal returns paid by bank fixed deposits (FDs), the additional tax benefits subject to the investment cap of Rs. 1,50,000 offered by PPF makes it look better than the other forms of investments. Also, the PPF deposits are government-guaranteed which makes it safer than financial instruments like FD’s.
There is no age limit for opening a PPF account. Both adults and minors can have a PPF account. However, in the case of minors who are below 18 years, the account should be operated by a guardian on his/her behalf until he/she turns 18.
FAQs: Age Limit for PPF
1. Is PPF a good investment?
PPF is the most common voluntary tax saving option that every other salaried person opts for. It is a good option for those who wish to take up long-term investments as the lock-in period for PPF is 15 years. However, it is not the only plan that helps you save on taxes, multiple other plans and schemes, such as the ELSS, also tend to offer high returns on investments.
2. Can a person have 2 PPF accounts?
No, one person cannot have 2 PPF accounts. However, a family is eligible to have multiple PPF accounts, a parent or guardian of the family can have individual accounts of their own and one of them can also open a PPF for a minor child (if they have any).
3. Am I required to deposit money in my PPF account every year? What if I don’t?
Yes, a minimum deposit of Rs. 500 is required every year. If you don’t, then your account will become inoperative.
4. What is the PPF lock-in period?
Investments made to a PPF account have a lock-in period of 15 years. However, individuals can make a partial withdrawal from the PPF account after 5 years from the date of opening the account.
5. Can I withdraw PPF after 5 years?
The Government has amended the PPF scheme and propagated some positive changes regarding the withdrawal of balance from the account. You can now withdraw the whole amount and close your PPF after 5-years.
6. How can I get maximum PPF benefit?
To obtain maximum PPF benefits, one should always make investments before the 5th of every month. Higher returns can be earned when a lump-sum investment is made at the start of financial year i.e, before 5th April every year.
7. Can a senior citizen open a PPF account?
There is no fixed upper age limit for opening a PPF account. Any Indian resident can open a PPF account and start investing.
End Note
Individuals who wish to open a PPF account do not have to meet any age requirements. Infants too can have their PPF accounts, but the account has to be operated by an adult, also known as a guardian, until the child turns 18 years of age, after which the child can operate the account. PPF accounts can also be opened by senior citizens to avail regular and fixed benefits.