When it comes to a child’s savings plan, it’s important to take the necessary steps that offer enhanced safety and financial security for the child. In this article, we will be discussing at length the importance of a PPF for Child and how investing in a PPF account will help in future-proofing the child’s security in education. So, keep reading the article till the end, as we will be helping you decode everything about the PPF for Child account.
What is A PPF for Child?
Folks, before we give you a detailed insight into the PPF for Child account and way it will help in offering safety for a child, let me give you a quick brief about the PPF for Child account. The PPF for Child account is basically a type of long-term investment that is backed by the Government of India and offers multiple attractive interest rates with good returns. The amount to be deposited in the fund ranges from INR 500 to INR 1,50,000 each financial year, either in EMIs or a lump sum. The amount deposited, maturity amount & interest amount are totally exempt from taxes.
Now that you have a good understanding of the PPF for Child, head to the next section of the article to decode the steps for opening a PPF for Child.
How to Open Up A PPF for Child?
If you are making a sound decision of future-proofing your child’s education, then here are the steps that you need to follow for opening up a PPF for Child account:
Logging into the Bank Portal
The first and foremost step that you need to do is to log in to the bank’s web portal. You can do internet banking by logging oin nline on the bank portal
Open A PPF Account
Once you have logged into the website version of the bank, look out for the option ‘Open a PPF Account.’ Once you have located the option, you can click on it to know the further steps.
Filling Out the Application Form
Once you have clicked on the Open a PPF Account option, then, you need to fill out the application form. Make sure to fill out the application form with all the necessary details, and then make sure to verify before you hit the submit button
Account to be Deducted
Once you have filled out the application form, then, you need to mention the feasible account that will be deducted each year towards the PPF account. Additionally, it provides an auto-debit option to deduct the specified amount automatically from your respective bank account on a certain pre-specified date.
Review the Application
Once you have mentioned all the details on the application form and have mentioned the amount that will be deducted from the PPF account, then, you need to review the application. Once reviewed, you will get an OTP which you will be getting on your registered mobile number for all authorisation purposes
Entering the OTP
Once you have received the OTP on your registered mobile number, you will need to enter the OTP, and you will receive a confirmation message via SMS and email
This is the online process that you can follow to open a PPF for Child. Head to the next section of the article to decode the steps that you can follow to open a PPF for Child in the offline process.
How to Open A PPF for Child in the Offline Mode?
If you are looking to open up a PPF for Child account in the offline mode, then here are the steps that you need to follow:
Relevant Documents
The most important thing to note is that whichever bank you choose to open a PPF for a child account, make sure to have an account in that bank. Also, make sure to gather all the relevant documents that are required to open a PPF account
Visiting the Nearest Branch
The next step that you need to do is to visit the nearest branch. Make sure to visit the nearest branch of your respective bank to get your PPF account opened
Filling Out the Form
Once you have visited the nearest branch, make sure to fill out the application form, which will be provided by the bank representative, and also submit it along with all the relevant documents that are required.
Hop onto the next section of the article to know the eligibility criteria for opening a PPF for child.
What are the Eligibility Criteria for Opening A PPF for Child?
If you are wondering about the eligibility criteria for opening up a PPF for a child, then here are the ones that you need to know:
Indian Resident
The applicant must be a resident of India
Account to be Opened by Guardian
The guardian or the parent will be eligible to open the account for the minor
Register Nominee
While opening the PPF account, it is required to register the nominee mandatorily.
Grandparents Cannot Operate the Account
The grandparents are not allowed to operate the PPF account unless they become the guardians themselves in case of the demise of the minor’s parents.
Minimum and Maximum Amount
It is important to note that the minimum amount to be contributed is INR 500, & the maximum amount to be contributed is INR 1.5 lakhs to the PPF account of a minor.
Conclusion
The PPF for child account is not just a strategic investment but an assurance that is backed up by the Government of India. These accounts will not only serve as a future asset for the child’s education but will also offer a detailed understanding of the safety of a child’s education. Not only are these accounts sustainable, but also easy to maintain. That’s all, folks. I hope the article will help you get all the information you need.
Also Read:
PPF Interest Rate: How to Make the Most of Your Money
Financial Tasks to Complete Before the End of the Financial Year
