Investment Ideas for Children: Children’s PPF account can be opened in the name of either the mother or the father. This account can be opened at any age before 18 years. It can start from Rs 500.

Investment Idea for Minors: Family members should start saving as early as possible to secure the future of their children. Many parents do this too. But do you know that such a scheme, through which you can not only secure the future of the children financially but can also easily avail many other benefits?

We are talking about PPF. Public Provident Fund. Not only adults but children can also take advantage of this. You can open your child’s PPF account at any age before the age of 18 years. On this account also you will get the same facilities that you get in your account.

In whose name the account will be opened?

A PPF account for children can be opened at any bank or post office. The account can be opened in the child’s name. However, if you want to open an account in your own name, the parents’ names cannot be in the same account.

It is clear that only one of the parents will manage the PPF account of the child. At the same time, if you have two children, one will have an account in the name of the mother and the other in the name of the father. The father’s or mother’s name cannot be used as the account custodian for both children.

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open an account like this

You can open it with a monthly contribution of Rs.500. You can then enter any amount in multiples of Rs 50. After the age of 18, the child can manage it on his own. To open an account, you will need a photograph of the child, proof of age of the child (Aadhaar or birth certificate), KYC documents from the guardian, and a check for initial contribution.

will get this benefit

The first advantage will be that your child’s future will be financially secure. Second, you can deduct taxes on this account as well. However, if you also have a PPF account in your name, you can claim only Rs 1.5 lakh in annual contributions for tax exemption in both accounts combined.

Also, you can take a loan on this account after 1 year of account opening and before the maturity of 5 years. Remember that the loan amount should be more than 25 percent of the amount in that account at the beginning of the second year.