- Public Provident Fund (PPF) interest rate for Q1 FY 2026–27 remains at 7.1% per annum
- PPF accounts can be opened paperlessly via Aadhaar-based biometric eKYC from July 27, 2026
- Annual PPF contribution limit per individual, including minors, is Rs 1.5 lakh
The Public Provident Fund (PPF) continues to be one of the most trusted long-term investment options for parents planning their child's financial future. Backed by the Government of India, it offers guaranteed returns alongside complete tax exemption, making it a low-risk wealth-building tool.
For Q1 (April–June) of FY 2026–27, the PPF interest rate remains unchanged at 7.1% per annum. The scheme can be easily opened using Aadhaar-based biometric eKYC authentication, enabling paperless account opening as well as deposits and withdrawals starting July 27, 2026.
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Despite its popularity, many misunderstand the investment limits, especially when both parents want to invest in a child's account.
How to Open a PPF Account Online?
Step 1: Log into your bank's internet banking or mobile banking platform.
Step 2: Select the ‘Open a PPF Account' option.
Step 3: Click on the ‘Self Account' option or ‘Minor Account' option as applicable.
Step 4: Fill in the required details in the application form.
Step 5: Enter the total investment amount you want to deposit in the account per financial year.
Step 6: Submit the form. An OTP will be sent to the registered mobile number. Enter it in the relevant field.
Step 7: Once done, your PPF account will get created instantly and your all the details confirming the same will be sent on your registered email.
PPF Investment Limit: Understanding Rs 1.5 lakh Annual Cap
A common misconception is that both parents can individually invest Rs 1.5 lakh each in their child's PPF account, taking the total contribution to Rs 3 lakh annually. However, this is not permitted under PPF rules.
The maximum contribution allowed is Rs 1.5 lakh per financial year per individual. This limit includes: contributions to one's own PPF account and contributions made to a minor child's PPF account.
Additionally, a minor's PPF account cannot receive more than Rs 1.5 lakh in total contributions in a year, regardless of whether one or both parents contribute.
How PPF contributions for a child's account actually work?
Here's how the rules apply in practice:
If both parents invest Rs 1.5 lakh each in the child's account (total Rs 3 lakh): Not allowed
If both contribute within the overall limit (e.g., ₹75,000 each): Allowed
If a parent splits investment between own and child's account within Rs 1.5 lakh: Allowed
If total contribution to child's account exceeds Rs 1.5 lakh: Not allowed
Tax implications of investing in a child's PPF account
Contributions made by parents to a child's PPF account are treated as gifts. While the interest earned is credited to the child's account, it may be clubbed with the income of the higher-earning parent under income tax provisions.
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Since PPF interest is fully tax-free, this clubbing does not create any additional tax liability.
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