By Admin 
Every parent dreams that their child grows up and get a safe future. Whether it is studying or marriage, if the parents give a good fund to the children at that time, then they have no help. This is the reason that bank accounts and investing in the name of young children have become very popular nowadays.
PPF account may open in the name of children
Public Provident Fund is an account that any Indian can open in the name of his or his minor child. This is a completely government scheme and investing in it is very safe.
- Maturity period- 15 years ahead, which can be extended 5-5 years to continue from a total of 25 years.
- input range- In PPF account, you can deposit a minimum of 500 and a maximum of one and a half lakh rupees annually.
- Interest Rate- Currently, it has an interest rate with 7.1% annual quarter compounding.
If you open a PPF account at the time of birth of a child or in early years and deposit a maximum of 1.5 rupees every year, then in 25 years this amount can increase to about 1 crore rupees.
The child can use this fund himself at the age of 18 years. Whether it is high education, starting business or marriage. A big capital becomes for him.
Parents should know this rule
- A parent can open a PPF account in the name of the same child.
- If there are two children, then one can open the account of one mother and the father of the other.
- A maximum of one and a half lakh rupees can be invested annually, including the account of both the parents and the minor.
- As soon as the child is 18 years old, the status of the account will become major from the minor and the child will be able to manage it himself.
Option of bank FD and RD also
Not only PPF, parents can also open bank fixed deposits and recovery deposits in the name of their minor children. In this, a self -operated account can also be opened in the name of children above 10 years. Apart from this, only the guardian or parents operate the children of children under 10 years of age. A strong fund can be prepared for children by making regular savings through FD and RD. According to the rules of banks, the child’s Aadhaar card, birth certificate, KYC documents and photos of the guardian are required.
Tax free and safe investment
PPF account gets the benefit of EEE category i.e. deposits, interest and withdrawal are exempted from tax on all three. At the same time, interest on FD and RD is taxable. But it is considered a safe investment. Which means that with a little intelligent planning and proper investment in the name of children, parents can prepare crores of funds in 15 to 25 years. In such a situation, when the children grow up, they will already have financial strength in big decisions like studies, jobs or marriage.
Also read: PPF account, children’s investment, bank FD, RD account, safe funds, tax free scheme, parents, interest rate, government scheme, financial planning