Every parent dreams of providing their children with quality higher education and securing their financial future. If you are looking for a safe and tax-free investment option for your child's future, the Public Provident Fund (PPF) is an excellent choice.

By opening a PPF account in your child's name—whether at birth or during their childhood—you can ensure they have a substantial sum accumulated by the time they turn 18. Let’s use calculations to understand how much of a fund your child could receive after 18 years by investing ₹50,000 or ₹1 lakh annually, and how this same PPF account could grow into a retirement corpus of ₹6.75 crore by the time they reach the age of 60.

How to open a PPF account in a child's name?
There is no minimum age limit for opening a PPF account for a child. Parents can open an account in the name of a child—from a newborn to any age—at a bank or post office. However, once the child turns 18 (becomes a major), the account is transferred to their name as a 'major account.' Additionally, a PPF account matures in 15 years, after which it can be extended in blocks of 5 years.

Calculation for an investment of ₹1 lakh
Annual investment: ₹1,00,000
Monthly investment: Approximately ₹8,340
Total investment over 18 years: ₹18,00,000
Interest earned over 18 years: ₹18,76,000
Total maturity fund at 18 years: Over ₹36.76 lakh
Corpus (total fund) at age 60: If you continue this investment for 50 years, your total deposited amount will be ₹50 lakh; earning approximately ₹4 crore in interest, your total fund would grow to ₹4.50 crore.

Calculation for a ₹50,000 Investment
Annual investment: ₹50,000
Monthly investment: Approximately ₹4,200
Total investment over 18 years: ₹9 lakh
Interest earned over 18 years: ₹9.38 lakh
Maturity value after 18 years: Over ₹18.38 lakh
Corpus at age 60: Investing for 50 years results in a substantial fund of ₹2.25 crore by the age of 60.

Benefits of Early Investment
Experts believe that the earlier one starts investing, the greater the benefits. Investing at a younger age allows one to leverage the power of compounding.

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