Can PPF investors hold more than one account? Here is what rules say

While the PPF remains a top-tier savings tool, rules prevent investors from doubling tax benefits through multiple holdings

The Public Provident Fund (PPF) remains a cornerstone of Indian household savings, prized for its sovereign backing, guaranteed returns, and tax-free status. However, a common misconception persists: Many investors still believe opening multiple accounts can bypass the annual investment ceiling to unlock greater tax benefits.

 

The rule is that an individual is permitted to hold only one PPF account.

 

Only one PPF account permitted

An individual may open a PPF account by submitting an application in Form-1, according to rules in the Public Provident Fund Scheme, 2019.

 

The scheme clearly states that only one account can be opened in an individual’s name, irrespective of whether it is held with a bank or a post office. There is no provision permitting multiple personal PPF accounts under the scheme.

 

 

The rules further specify that joint accounts are not permitted under PPF.

 

These provisions are published on the official website of the National Savings Institute under the Ministry of Finance.

 

Opening accounts across banks does not help

Opening separate accounts at different banks or post offices does not create additional eligibility. Since PPF accounts are linked to an individual’s PAN, duplication can be detected during verification or at the time of maturity settlement.

 

If more than one account exists, authorities may treat the additional account as irregular. Contributions made in such accounts may be returned without interest, while only one account is allowed to continue.

 

PPF accounts for minors: What the rules permit

The notified scheme allows an individual to open one PPF account on behalf of each minor or a person lacking mental capacity for whom they act as guardian.

 

However, the rules also clarify that only one account can be opened per minor, meaning another guardian cannot open a separate PPF account for the same child.

 

Annual investment cap remains unchanged

 

Under Paragraph 4 of the scheme dealing with subscription limits, deposits in a PPF account must be:

 

Minimum: Rs 500 per financial year

 

Maximum: Rs 1.5 lakh per financial year

 

Importantly, the scheme specifies that the Rs 1.5 lakh annual limit applies collectively to deposits made in:

 

The individual’s own PPF account, and accounts opened on behalf of minor children operated by the same guardian.

 

This means opening a minor’s account does not increase the total tax-eligible investment limit available under PPF.

 

Why the one-account rule exists

The framework of PPF is designed to promote disciplined long-term savings within a defined contribution cap. Restricting investors to a single account prevents misuse of tax benefits through multiple holdings while keeping the scheme administratively simple.

 

For investors looking to save beyond the permitted PPF limit, the regulations implicitly require diversification into other long-term financial instruments rather than expanding exposure within the same scheme.