Why Should All Parents Open PPF Account For Their Kids

Parents want to secure their child’s future, offering them some financial stability whenever they need it at crucial junctures of their lives.

[{"selector":"#anim-041c9a20-e1b0-4a51-a95c-9f86772e779d","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-3b90edad-c77b-4d1d-9572-516a56875141","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-c91a3a92-d8b6-4f32-9f3e-3cb47e4741a2","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}]

Opening a Public Provident Fund (PPF) account could be one important step to providing children with a solid financial foundation for the future.

[{"selector":"#anim-410090ed-3410-4b1f-90b7-e47dd607fde9","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-6c7da81b-ac79-4f60-885b-b0cb9ecdfddf","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-74be15fe-6816-434e-a4b0-a78a859cd862","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}]

PPF is a government-backed savings plan that offers good return rates and a slew of other advantages.

[{"selector":"#anim-dc278338-05fe-461a-a969-89f37c0a60ae","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-24ee2e6a-b5df-4312-ada6-142440034f1a","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-b71adf77-1763-46f9-9f3b-e7e65d01dea2","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}]

Backed by the government, PPFs are risk-free and guarantee stable returns.

[{"selector":"#anim-d0cc5180-8a36-4589-9bdd-26546bbece19","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-49524ad8-9de6-4816-82f1-666b75a5d390","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-1f88f663-4a9e-4d54-87a2-e1f243c5e04d","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}]

PPF account has a 15-year lock-in period. When the child reaches the age of 18, he or she can choose whether to close or extend the account.

[{"selector":"#anim-503aec80-0d56-4615-aa20-b199adc0c96b","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-70918a3e-9ffe-4e35-bafe-995a4a522194","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-ba63d930-56e3-457d-9e5b-0f6eac235eba","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}]

An account holder is permitted to deposit or invest a total of Rs 1.5 lakh in a single fiscal year, which is also eligible for applicable tax benefits at the time of filing the return.

[{"selector":"#anim-efc050a1-9f38-4040-88a5-ee39cbb05609","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-a4bbea8e-a787-4fce-8ed5-74052bfd8334","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-514c9f42-80d8-4cd2-bf72-12d8c31ee586","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}]

PPFs are one type of investment vehicle that comes within the Exempt-Exempt-Exempt (EEE) category.

[{"selector":"#anim-c684a27b-40b6-4917-85ce-6e96228abda5","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-49172b31-5443-4295-8bae-08025cbe9ae6","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-4bdadb66-f219-4ed7-8ddf-d6c4b633ad56","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}]

The PPF is the best option if you are looking to invest in a low-risk financial vehicle.

[{"selector":"#anim-92b6c79d-25f3-48bd-bddc-7aca113a4ea0","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-4d07a1e4-f22f-47df-bb38-1ed8015b05a6","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-1d16f6aa-e7ac-4832-940b-0bfff837ca81","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}]

Account holders are entitled to withdraw funds from their PPF accounts starting from the seventh year, subject to certain terms and circumstances.

[{"selector":"#anim-9af101a0-72de-48b8-8a35-98ba529fc03b","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-301beeda-32ef-4c7a-8cdc-7a9b562f199a","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-487c644b-a42e-4c67-9bae-2fd05f0d83da","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}]