PPF Investment 2023: Create a government account in the name of the minor, who will receive a benefit of Rs. 32 lakh after turning 18; learn about the program's specifics
Parents' worries are growing in tandem with inflation in the same way that it is. There is friction between marriage and marriage, ranging from the children's schooling to their good future.
You can plan an investment if you don't want to experience this stress. You can do this by investing in plans that allow you to get significant returns over the long term while spending less money. Let's learn all the pertinent information.
PPF, or Public Provident Fund, might assist you in this. For your minor child, you must open a PPF account at the appropriate period and deposit a specific sum. If you make it a habit of putting money each month, the child will have a sizable sum when they are grown.
Tell us how to open the child's PPF account and what paperwork is needed for this first. The fact that PPF has no age restrictions is its most significant feature. Anytime you like, you can open an account and begin investing. You fill out Form 1 in any authorised bank branch where you go for this.
Formerly known as Form A, it is now referred to as Form 1. If a branch is located close to your home, you will be able to open a PPF account there. Also, future maintenance will be simple.
how to register for PPF
While opening an account, you can use information from your current passport, permanent driver's licence, voter ID card, Aadhaar, or ration card as evidence of residency. For identity evidence, you can present your PAN card, Aadhaar, voter ID, passport, or driver's licence. The birth certificate of your minor child must be shown. Also, a passport-size photo is required.
You must present a cheque for at least Rs. 500 or more when opening the account. A PPF passbook in your child's name will be supplied once all of the necessary paperwork has been completed.
How would you receive 32 lakhs?
Let's find out how to withdraw Rs. 32 lakh from the PPF account that is in the child's name. Assume you opened a PPF account when your young child was 3 years old and you began investing. When your child turns 18, your PPF account will reach maturity. If you'd like, you can increase it later, but for now, we'll use the 15-year calculation. You started making a monthly contribution of Rs 10,000 into the child's PPF account.
For 15 years, you must deposit this sum each month. When the PPF account matures, the child will receive Rs 3,216,241 assuming the return is now added at a rate of 7.10%. When the kid reaches the age of 18, they'll get this money. From the perspective of a person who is 18 years old, this sum is adequate and can be utilised to cover higher education costs or other required obligations.
