Can you open multiple PPF accounts? Know the rules
What's the story
The Public Provident Fund (PPF) is a long-term investment scheme backed by the Indian government. It offers decent returns on the principal amount invested and comes with tax benefits, making it one of India's most trusted savings instruments. The scheme allows individuals to invest between ₹500 and ₹1.5 lakh per year for 15 years in their PPF accounts. After maturity, investors can withdraw their investment with interest without paying any tax. But, can you open multiple PPF accounts? Let's see.
Account restrictions
You cannot have more than 1 PPF account
According to the Public Provident Fund Act of 1968, an individual cannot open more than one PPF account in India. This rule applies even if you try to open a PPF account via different banks. For example, if you have a PPF account with SBI, opening another one in your name at PNB or even at the post office is not allowed.
Account management
What happens if you open 2 accounts?
If two accounts are opened by mistake, the second one will be treated as an irregular account and will not earn any interest. However, you can merge multiple PPF accounts with the approval of the Ministry of Finance. If merging is not possible, the other account(s) must be closed by the subscriber who will only get back their principal amount. Interest earned on any account except for primary one won't be returned.
Minor provisions
Can parents open a separate PPF account for their child?
Parents (either mother/father) can open a separate PPF account for their minor child below 18 years of age. However, the combined investment in both accounts must not exceed ₹1.5 lakh per annum in a single financial year. Once the minor turns 18, they have to maintain their own PPF account and submit a revised application along with the nomination form to continue.