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Can a 1-year-old child have a PPF account?

Milind

Milind Vadjikar  |597 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Sep 30, 2024

Milind Vadjikar is an independent MF distributor registered with Association of Mutual Funds in India (AMFI) and a retirement financial planning advisor registered with Pension Fund Regulatory and Development Authority (PFRDA).
He has a mechanical engineering degree from Government Engineering College, Sambhajinagar, and an MBA in international business from the Symbiosis Institute of Business Management, Pune.
With over 16 years of experience in stock investments, and over six year experience in investment guidance and support, he believes that balanced asset allocation and goal-focused disciplined investing is the key to achieving investor goals.... more
Asked by Anonymous - May 13, 2024Hindi
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I am my wife have individual PPF investment. Can we have 1 more PPF account on the name of our child of 1 year old?

Ans: Recent change of rules have made investing in PPF in the name of minor child redundant because it will only have 4% ROI as applicable to post office savings account.

If your kid is a daughter then SSY is a good option.

If your kid is a son then NPS Vatsalya or debt Mutual funds could be good options.
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Ramalingam

Ramalingam Kalirajan  |6991 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 20, 2024

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Can i open 2 or more PPF account ?
Ans: Understanding the Public Provident Fund (PPF)
The Public Provident Fund (PPF) is a popular savings-cum-tax-saving instrument in India. It offers attractive interest rates, tax benefits under Section 80C, and a secure way to build a retirement corpus. However, there are strict rules governing PPF accounts, including limitations on the number of accounts one can hold.

Rules Regarding Multiple PPF Accounts
Single Account Rule
According to the rules established by the Government of India, an individual is allowed to open only one PPF account in their name. This is strictly enforced to prevent the misuse of tax benefits and to ensure systematic savings.

Penalty for Multiple Accounts
If an individual opens more than one PPF account, the additional account(s) will be considered invalid. The government will merge the accounts, and only one will be recognized as valid. The contributions made to the additional accounts will not earn any interest, and the tax benefits will not apply.

Joint Accounts and Minor Accounts
While you cannot open multiple accounts in your name, you can open a PPF account for a minor child where you act as the guardian. However, the total contributions to the guardian's account and the minor's account together cannot exceed the maximum limit of ?1.5 lakh in a financial year.

Advantages of a PPF Account
Tax Benefits: Contributions up to ?1.5 lakh per year are eligible for tax deduction under Section 80C of the Income Tax Act.
Safety and Returns: PPF offers a government-guaranteed return, making it a safe investment.
Long-Term Savings: With a 15-year maturity period, PPF encourages long-term savings, which can be extended in blocks of 5 years.
Managing Your PPF Account
Contribution Limits
Ensure that your annual contributions do not exceed ?1.5 lakh, whether the deposits are made in a single account or split between your account and a minor's account. Exceeding this limit will result in the excess amount not earning interest.

Regular Deposits
To keep your PPF account active, deposit a minimum of ?500 each financial year. Missing this minimum contribution can result in the account becoming inactive, requiring a penalty for reactivation.

Alternatives for Diversifying Savings
Since you can only have one PPF account, consider other investment options to diversify your savings:

National Savings Certificate (NSC): Similar to PPF in terms of safety and tax benefits but with shorter maturity periods.
Equity-Linked Savings Scheme (ELSS): Offers market-linked returns with tax benefits under Section 80C.
Sukanya Samriddhi Yojana (SSY): If you have a daughter, this scheme offers higher interest rates and tax benefits.
Conclusion
To directly address your query: No, you cannot open two or more PPF accounts in your name. Doing so will violate the rules set by the Government of India, leading to potential penalties and invalidation of additional accounts. Stick to one PPF account and consider other tax-saving and investment instruments to diversify your portfolio and maximize your returns.

Your disciplined approach to investing and adherence to the rules will ensure a secure financial future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Latest Questions
Anu

Anu Krishna  |1287 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Nov 08, 2024

Asked by Anonymous - Nov 07, 2024Hindi
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Relationship
Hi Anu Mam Im 27 yrs old ( married) and 10 yrs old daughter. Im seperated from my husband since 2 yrs due to several reasons like he is drinking and Totally addicted to it. And he is totally dependent and now today also roaming on the roads of some streets of hyd. I belongs to an orthdox family. Now the question is one backward caste man who is married age : 33 he is interested in me and proposed me to a marriage after knowing all my past and saying that he accepts my child too. And the thing is he said a lie to me at first that he is unmarried and even though i had a good impression on him about the way he behaves with me he even treat me in a very polite manner. He says he loves me even though i too had a good impression but the things are the castes and can we both settle down with a marriage can we be happy or he is only trying to convince me to get him a wife to care care of him or only for his parents, he always talks about his own sister and also the office colleagues calls them sister and get emotional about them those who left the office. And he cries a lot which i dont trust on him and the face i see him that was not an real cry that looks like an act which i dont like in him. May he is acting ? Or really loving me, ge cares alot i feel like he is over reacting
Ans: Dear Anonymous,
If you are in doubt, then it's highly likely that he is putting on an act. Go with your intuition and hey hey, you said that he is married and so are you...You do realize that you just can't go ahead and marry while you are already to other people, right?
Focus on what's happening in your life; you obviously have to do something about it...Other relationships can wait!

All the best!
Anu Krishna
Mind Coach|NLP Trainer|Author
Drop in: www.unfear.io
Reach me: Facebook: anukrish07/ AND LinkedIn: anukrishna-joyofserving/

...Read more

Anu

Anu Krishna  |1287 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Nov 08, 2024

Asked by Anonymous - Nov 06, 2024Hindi
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Relationship
Hello Ms Anu, I am a 42yr female..married since 14 yrs and have 10yr old son . I am highly qualified and financially independent. My marriage was a arranged one.. but in these 14 yrs.. I never experienced love or and attachment from my husband's side. He is a family man.. there is no other woman involved..He loves his parents and his two sisters immensely... but always treats me as a option. I feel humiliated and lonely and he has short temper when i talk about this issue... so basically I don't discuss... but that is no solution... I am suffering and unhappy. What should I do?
Ans: Dear Anonymous,
A few married men can be more focused on the women on their side of the family; it becomes easy to express love, care and attention to them as he has grown with them.
A wife happens to be someone that he is yet to understand. It requires effort to make a marriage work; your husband finds it convenient to take the easy way out and 'hang out' with his family.
So, here you take the lead and start. Start not by bringing forth your complaints as this is going to push him further to them which is going to annoy you BUT by inviting him to be with you. A lot of work, I get it...but the bottom line: that's what you want, right?
Plan dates evenings, take short vacations together, work-out together...the key is to establish a connection which never had its chance in the first place...So, give your best shot! Most times actions speak louder than words ever can...

All the best!
Anu Krishna
Mind Coach|NLP Trainer|Author
Drop in: www.unfear.io
Reach me: Facebook: anukrish07/ AND LinkedIn: anukrishna-joyofserving/

...Read more

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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