PPF Interest Rate 2025: Can You Open More Than One Account? Find Out Here

PPF Interest Rate 2025: The Public Provident Fund (PPF) is a trusted savings plan in India, known for its secure returns and tax benefits. Many people choose it for long-term goals like retirement savings. Some people are unsure about the rules when it comes to holding more than one PPF account

PPF – Key Information
Interest Rate	7.1% per annum.
Minimum Investment Amount	Rs.500
Maximum Investment Amount	Rs 1.5 lakh per annum.
Tenure	15 years
Risk Profile	Offers guaranteed, risk-free returns
Tax Benefit	Up to Rs.1.5 lakh under Section 80C

1. One PPF Account per Person

According to the Public Provident Fund Act, 1968, an individual is only allowed to have one PPF account. This rule is strict, and it doesn’t matter where the account is opened, whether it’s with a bank or a post office.

If you open a second account, it’s against the law. Any second account that is created will not be valid. The money you deposited in that second account will be refunded, but you won’t earn any interest on it.

Contribution Rules

• Minimum Deposit: ₹500 per financial year.
• Maximum Deposit: ₹1.5 lakh per financial year.
• Deposit Frequency: At least deposit of once a year is required for the first 15 years. It can be made in lump sum or multiple instalments (up to 12 installments).
• Active Account Requirement: A Deposit of at least ₹500 every year is mandatory to keep the account active.
• Inactive Account Reactivation: Reactivation requires a ₹50 penalty + ₹500 deposit.

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2. PPF Accounts for Minor Children

While you can only have one PPF account in your own name, you can open an account for your minor children. A parent or guardian can manage the account on behalf of the child. According to Zee News, there is however a limit to how much you can deposit in total across both your and your child’s PPF accounts. The total annual contribution to both accounts cannot exceed ₹1.5 lakh. For example, if you put ₹1 lakh in your own account, you can only add ₹50,000 to your child’s account in the same year.

3. No Joint PPF Accounts

PPF accounts are meant to be held individually. Joint accounts are not allowed. This rule applies even if you are a spouse or a parent. In the case of a minor child’s account, only the child’s name is listed on the account, while the guardian or parent takes care of managing the account.

What Happens If You Open a Second PPF Account by Mistake?

If you accidentally open a second PPF account, you should immediately inform the bank or post office where the account was opened. Usually the second account will be closed, and your deposit will be returned, but you won’t get any interest on the money you put in.

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Can NRIs Open PPF Accounts?

Non-Resident Indians (NRIs) cannot open new PPF accounts. However, if someone opened a PPF account while they were living in India and later became an NRI, they can still continue contributing to their account until it matures, which usually takes 15 years. Once the maturity period is over, the account cannot be extended.

PPF Interest Rate 2025

For the financial year 2024-2025, the interest rate on PPF accounts is 7.10% per year. This rate can change from time to time. One of the biggest advantages of PPF is that it offers EEE (Exempt-Exempt-Exempt) tax status, meaning that the money you contribute, the interest earned, and the amount you get when your account matures are all tax-free.

You can deposit between ₹500 and ₹1.5 lakh each year in a PPF account. The account has a default maturity of 15 years, but you can extend it for additional 5-year blocks after the initial period ends.

Process to Open a PPF Account Online

• Step 1:Log into your bank account on the internet banking or mobile banking platform.
• Step 2:Select the ‘Open a PPF Account’ option.
• Step 3:If the account is for self, click on the ‘Self Account’ option. If you are opening the account on behalf of a minor, select the ‘Minor Account’ option.
• Step 4:Enter the relevant details in the application form.
• Step 5:Key in the total amount you want to deposit in the account per financial year.
• Step 6:Submit the application. An OTP will be sent to the registered mobile number. Enter it in the relevant field.
• Step 7:Your PPF account will get created in an instant! Your PPF account number will be displayed on the screen. An email will be sent to your registered email address with all the details confirming the same.

Process to Open a PPF Account in a Post Office

• Step 1:Get an application form from your nearest post office or online.
• Step 2:Fill up the form and submit it with the required KYC documents and a passport-size photograph.
• Step 3:Make the initial deposit required to open a post office PPF account. The amount can range from Rs.500 up to Rs.1.5 lakh per financial year.
• Step 4:Once your application is processed, a passbook will be given to you for the PPF account opened.

Procedure for Withdrawal from PPF

In case you wish to partially or completely withdraw the balance lying in your PPF account.

• Step 1: Get the application for withdrawal of PPF from the bank or post office where you opened the PPF account (Form 3/Form C).
• Step 2:Fill in the application form with relevant information.
• Step 3:Submit the application to the concerned branch of the bank or post office where your PPF account lies.