PPF account rules: Can you open more than one Public Provident Fund Account

New Delhi: Public Provident Fund (PPF) is considered one of the most popular long-term savings scheme in India. It is controlled and managed by the central government and offers guaranteed and fixed returns. The returns are tax-free. Lots of confusion still persists whether more than one PPF account can eb opened in the name of a single individual. The current rate of interest on PPF is 7.1% per annum.

Understanding the Single PPF Account Rule

According the PPF rules, an individual is allowed to open only one Public Provident Fund account. According to the Public Provident Fund Scheme 2019, any person can open a PPF account by filling Form-1. Only one PPF account can be opened in a person’s name and there is no provision to open more than one personal PPF account under this scheme. Additionally, joint PPF accounts are not allowed. All these rules are mentioned on the official website of the National Savings Institute under the Ministry of Finance.

Whether one opens a PPF account in bank or Post Office, rules are the same and there is no difference in benefits. A PPF account is linked to PAN so during verification, the existence of more than one account can be easily detected. If multiple accounts are found, the additional account may be considered invalid. The amount deposited in such an account would be returned without interest, and only one account will be allowed to continue.

PPF account for minors

According to the rules, a guardian is allowed to open a PPF account in the name of a minor child or a mentally incapacitated person. However, only one PPF account can be opened in the name of a child.

As per the scheme rules, the minimum deposit is Rs 500 per financial year and the maximum deposit is Rs 1.5 lakh per financial year. The Rs 1.5 lakh limit applies in total. The PPF scheme’s objective is to promote long-term disciplined savings. Therefore, a fixed investment limit has been set. If an investor wants to save more than the PPF limit, they will have to invest in other long-term investment options.