Can you open more than one PPF account? Here’s what the rules say

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The Public Provident Fund (PPF) is a popular long-term savings scheme backed by the Government of India, known for its attractive tax benefits and risk-free returns. However, when it comes to the number of PPF accounts an individual can hold, the rules are clear—and restrictive.

One person, one account only
As per the rules laid out under the PPF Scheme, 1968 (and now governed by the PPF Scheme, 2019), an individual can hold only one PPF account in their own name at any given time. Opening multiple PPF accounts in your name is not permitted, even if they are with different banks or post offices. If multiple accounts are found, the subsequent ones will be considered invalid and the deposits in them will be refunded without interest.

PPF accounts for minors
While you can’t hold more than one PPF account in your name, you can open a separate PPF account for a minor child, where you act as the guardian. However, there’s a catch: the combined contribution limit of both your account and the minor’s account cannot exceed ₹1.5 lakh in a financial year.

For example, if you contribute ₹1 lakh to your own PPF account in a financial year, you can only contribute ₹50,000 to your minor child’s PPF account during the same period.

Joint PPF accounts are not allowed
PPF accounts are meant to be individual accounts only, and joint holding is not permitted. This rule applies to both regular and minor accounts.

What if you accidentally opened a second PPF account?
If you’ve unknowingly opened a second PPF account, it’s important to notify the bank or post office and the relevant authority (usually the Department of Posts or Ministry of Finance) as soon as possible. The second account will typically be closed, and you will only receive your principal amount back—no interest will be paid on the second account.

Conclusion: Stick to one account, but plan for the family
To stay compliant with the rules and continue enjoying the full benefits of the PPF scheme—including tax exemption under Section 80C and tax-free interest—ensure you operate only one PPF account in your name. However, you can strategically use the scheme for your children’s future by opening a minor account as their guardian, staying within the total contribution limit of ₹1.5 lakh per year.