Jul 052015

Public Provident Fund is the most popular tax saving instrument in India.  It was introduced through the National Savings Institute under Ministry of Finance in 1968.  The aim to introduce PPF was clear; to promote small saving by promising reasonable returns on small investments and provide income tax benefits on the contributions. But every one have the question that what is the Age Limit in Public Provident Fund ?

Age Limit in Public Provident Fund


Age Limit in Public Provident Fund

As such, there is no minimum or maximum Age Limit in Public Provident Fund.  Even a new born baby can have a PPF account under its name.  However, until a child is officially an adult, the account would have a guardian as the operator of the account.  Once the account holder turns an adult, the account would be managed and operated by the account holder and not by the guardian. We have several Benefits of Public Provident Funds

  • PPF Account for Minors

The best is to open a PPF account for a minor.  Assume that you have a newly born child and you get a PPF account in the baby’s name.  You keep investing Rs 1.5 lakh every year in its account.  Now when your child turns 15 or 16 years, they would have more than 25 lakh ready in their account, which you can use it for their higher studies.

If just in case the money is not required at that time, you can further continue the investment for next 5 or 10 years and the proceeds could be used for the marriage of your child.  By that time, the same amount could turn up to be more than 35-40 lakh, depending on your annual investment.

Such is the value of continuous investment.  It does not weight heavy on your pocket every year, however, when accumulated along with the decent rate of interest in PPF, the money comes out to be a significant amount to pursue your important responsibilities.

  • What is the right age to open a PPF Account?

There is no certain answer to this question.  Since there is no minimum of maximum age limit for opening a PPF account, you could get it for yourself at any age.  After all, what matters at the end of the day is that you keep saving some amount of your income for future and build up a fortune.

Nevertheless, we would certainly say that the sooner you get a PPF account for yourself or your family members, the better it is.  When you open a PPF account at an early stage in life, you become much more secure as against no investment.

As a matter of fact, we could say that following are the moments when you should get a PPF account opened:

  1. For a child, when he/she is born
  2. At the time when you get your first job
  3. After your marriage, when you are looking for a sustained investment for your future

Having said that, there is no right time when you can start saving.  You can start doing it anytime you want, if you have not yet got an account for yourself. For more information about PPF you can read the article Public Provident Fund FAQ

To reiterate the benefits of PPF investments, along with the money that you grow with, you also get tax benefits for the contributions that you make towards your children’s and spouse’s account.

In our article Age Limit in Public Provident Fund, we tried to give the answerr of your question related to Age Limit in Public Provident Fund. But still if you have any question so ask me.

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