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PPF account rules: Public Provident Fund, commonly known as PPF, is one of the most popular small savings scheme in India due to its tax benefits, interest rates and easy accessibility among others. PPF is a long-term investment scheme that gives you decent returns on the principal you invest. Backed by the Government of India itself, this small savings scheme is one of India’s most trusted savings instruments.
Individuals can invest a minimum of ₹500 and a maximum of ₹1.5 lakh per year for 15 years in their PPF accounts. This amount is locked in for 15 years, after which you can get your investment back with interests without having to pay any tax. You can also choose to extend the time after the maturity of your PPF account in five-year windows and continue to earn interests.
With such benefits and trust, individuals may decide to open more than one PPF account. But the question is — Can you open multiple PPF accounts at once? Here is a breakdown of what you can and cannot do.
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Can you open more than one PPF account?
The simple answer is no. One cannot open more than one PPF account in India, as per the Public Provident Fund Act, 1968.
This rule will apply even if you try to open a PPF account through different banks. For example, if you have opened a PPF account with SBI, you cannot open another one in your name at PNB or even at the post office. Similarly, you cannot open a PPF account in a bank if you already have a post office PPF account.
What happens if you open more than one PPF account?
Only one account PPF can be opened in one name. If two accounts are opened by the subscriber in his name by mistake, the second account will be treated as irregular account and will not carry any interest.
However, there is an option to merge the two or more PPF accounts with the approval of the Ministry of Finance (DEA). For this purpose the subscriber will have to write to the Under Secretary-NS Branch MOF (DEA), New Delhi-1 through the Accounts Office giving detail of each account, as per a government notification.
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If the multiple PPF accounts are not merged, the other account(s) must be closed by the subscriber and only the principal amount for the account(s) will be returned. The interest earned any account, except the primary PPF account, will not be returned.
What about a PPF account for minors?
One exception to opening multiple PPF account is if it is for a minor. Parents (only mother or father) can open a separate PPF account for their minor child below the age of 18.
However, the combined investment in your own account and your child’s PPF account must not exceed the limit of ₹1.5 lakh per annum in one financial year.
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For example, if you put ₹1 lakh in your own account in a single financial year, you cannot put more than ₹50,000 in the minor’s PPF account.
Once the minor reaches the age of 18, he or she has to maintain the PPF account on their own. He or she is required to submit a revised application to open the account and submit it along with the nomination form.
How to open PPF account?
One can open a Public Provident Fund (PPF) account at the post office or any nationalised bank including SBI, PNB and Bank of India. Some private lenders including HDFC Bank and Axis Bank also have the facility to open PPF accounts.
You must submit the complete application form and the appropriate documents, including proof of identity, address, and signature.
After all this is done, you can make the deposit in your PPF account. As of Q2 FY 2025–2026, the current PPF interest rate is 7.1% per annum. The amount is compounded annually but calculated monthly on the lowest account balance between the 5th of the month and the end of the month.
Key Takeaways
- Only one PPF account can be opened per individual; additional accounts are not allowed.
- Parents can open a separate PPF account for their minor child, but combined investments must not exceed ₹1.5 lakh annually.
- Accounts opened mistakenly can be merged or must be closed, with interest on secondary accounts forfeited.
