The Public Provident Fund (PPF) is considered one of India's most trusted investment instruments due to its safety and tax-free returns. Often, some people, either in pursuit of higher returns or due to a lack of knowledge, consider opening multiple PPF accounts. However, under the Public Provident Fund Act, 1968, a person is allowed to have only one PPF account in their name across the country (whether in a bank or post office).

If you already have a PPF account with a bank (such as SBI or HDFC), you cannot open another account with another bank or post office. This rule is strictly enforced throughout India.

What if you have more than one PPF account?
If someone accidentally opens multiple PPF accounts, the government has strict provisions:

Loss of interest: All accounts other than the primary account are declared 'irregular'. You will not be paid any interest on the deposits in these additional accounts.

Merging Accounts: Additional accounts must be closed or merged with the primary account with the approval of the Ministry of Finance (NS Branch). An application must be submitted to the Ministry in New Delhi.

Refund of Principal Amount Only: If accounts are not merged, they are closed, and the customer is refunded only the principal amount, not any interest.

What are the rules for minors?

There is only one exception to the PPF rules, and that is the account for minor children. Either parent can open a separate account in the name of a child under 18 years of age.

Investment Limit: Importantly, the total investment in your own account and your minor child's account combined should not exceed ₹1.5 lakh in a financial year.

Example: If you have deposited ₹1 lakh in your account, you can deposit a maximum of ₹50,000 in your child's account. When the child turns 18, they will be able to manage the account themselves.

Features of a PPF Account and Interest Rate
PPF is not only safe but also helps build a substantial corpus over the long term:

Interest Rate: As of the second quarter (Q2) of FY 2025-26, the current interest rate is 7.1% per annum.

Investment Limit: Minimum ₹500 and maximum ₹1.5 lakh per annum.

Maturity: This account is for 15 years, which can be extended in blocks of 5 years each.

Where to Open: It can be opened at any national bank, select private banks, or post offices.

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