PPF Age Limit: Eligibility Criteria, Tenure, and Required Documents

While exploring different long-term investment options, you must have considered investing in a public provident fund (PPF). Decent returns, a sovereign guarantee of investment, and tax exemptions are some of the prime benefits of opening a PPF account. You must have wondered whether you are eligible to invest in PPF based on your age or not.

As the investment tenure for a PPF account is 15 years, this article will answer many of your questions about the PPF account opening age limit, eligibility criteria, and documents needed for opening a PPF account. Read on to know whether you can open an account for your child or if your PPF account will continue if you become an NRI.

PPF Account Age Limit: What is the Rule Here? 

You will be glad to know that there is no age limit for a PPF account opening. Anyone ready to make a long-term investment commitment can open a PPF account.

You can open an account if you are 28 years old and are planning to build an investment portfolio. You can even open an account for your child. You can open a PPF account tailored to your financial goals and plans. For instance, if you want to fund your child’s higher education, you can open an account when your child is five years old. By the time your child is 20, you will have a significant amount of money at your disposal to pay for their tuition and other educational fees. You could also open a PPF account at the age of 45 and avail of the maturity amount at the age of 60 to enjoy your retirement.

In a nutshell, there is no PPF age limit. You are free to open a PPF account at any age. Your financial goals are all that matters when it comes to opening a PPF account. In case you want to diversify your investment portfolio, you can open a PPF account to invest in almost zero-risk investment schemes while putting a part of your earnings in high-risk investment schemes such as mutual funds and stocks.

PPF Account for Minors: Can They Open One? 

The PPF account age limit rules require parents or guardians to open a PPF account on behalf of minors who are below the age of 18 years. If you want to save money for your child’s higher education or marriage, you can open a PPF account in your child’s name and start investing. You will have a huge amount of funds in your hands when the child comes of age.

Moreover, if you have a surplus set aside from your earnings, then opening a PPF account and investing that money there can save you tax. You can avail of tax exemptions on the invested amount of up to ₹1,50,000 under Section 80C of the Income Tax Act, 1961.

Moreover, if you need funds urgently, you can withdraw a partial amount from your child’s PPF account per the terms and conditions of the PPF scheme. The best part is that opening a PPF account for your child will instil the habit of saving and sow the seeds of financial independence early on.

Eligibility to Open a PPF Account

Here are some important aspects related to eligibility that you should know before opening a PPF account:

1. Any resident of India aged above 18 years can open a PPF account.
2. A parent or a guardian can open a PPF account on behalf of a minor (individual below the age of 18 years).
3. Grandparents are not allowed to open an account for a minor if their parents are alive.
4. Non-resident Indians (NRIs) cannot open a PPF account. However, your account will. continue until the maturity date if you become an NRI after opening a PPF account.
5. Opening multiple PPF accounts is not allowed. You cannot open a joint PPF account, unlike a joint savings account in banks.

PPF Tenure: How Long Does it Stay? 

The tenure for a PPF account is 15 years—the maturity date is calculated as 15 years from the end of the financial year in which you opened a PPF account. For instance, if you opened a PPF account on February 15, 2015, the end date of the financial year was March 31, 2015. 

In this case, the maturity date of your PPF account will be March 31, 2030. You also have the option to extend your tenure in blocks of five years after maturity. Given its long tenure, PPF is considered one of the best long-term investments, offering decent and guaranteed returns and tax-saving benefits.

Also Read: Mutual Fund vs PPF-Which Is the Better Investment Instrument

Documents Required to Open a PPF Account

The documents required to open a PPF account vary slightly based on whether you are opening your PPF account or opening one on behalf of your child. Along with the offline application form or details that need to be filled out while opening an online account, you need to submit the following documents:

To open your PPF account you will need:

• Identity proof issued by the Government of India such as an Aadhaar card, passport, or PAN card, among others.
• Residential proof such as Aadhaar card, passport, ration card or electricity bill, among others.
• Passport-size photo.
• In the case of offline applications, you need to submit a pay-in slip with cash or a signed cheque that mentions the amount you want to invest every year.

To open a PPF account for a minor you will need:

• Identity proof issued by the Government of India, such as an Aadhaar card, PAN card, passport or voter ID, of a parent or guardian.
• Residential proof, such as an Aadhaar card, passport, ration card or electricity bill, of a parent or guardian.
• Age proof of a minor, such as a birth certificate or Aadhaar card.
• Passport-size photograph of parent or guardian.
• In the case of offline applications, you need to submit a pay-in slip with cash or a signed cheque that mentions the amount you want to invest every year.

Closing Thoughts

Since there is no PPF account opening age limit, you can open a PPF account when you are ready to invest for the long term. The PPF investment scheme is recognised for guaranteed returns and tax exemptions.

While it is never too late to invest in PPF, opening a PPF account as soon as possible is wise. It will help you save the money you may otherwise spend on unnecessary expenses. Whether it is to accomplish your personal goals, fund your child’s education, or save for retirement, PPF will steer your funds in the right direction.

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