PPF for Children: Can ₹1.5 Lakh a Year Grow to ₹55 Lakh at 18 and ₹6.75 Crore by Age 60?

Parents looking to build a long-term fund for their child's education, career and future financial needs often consider the Public Provident Fund (PPF). The government-backed savings scheme combines long-term compounding with tax benefits under applicable rules and can also be opened for a minor through a parent or legal guardian.

But how large could the corpus become if parents start investing soon after a child's birth?

The calculation presented in the supplied report assumes a 7.1% annual PPF interest rate and compares three annual contribution levels—₹50,000, ₹1 lakh and the maximum ₹1.5 lakh.

Under those assumptions, investing ₹1.5 lakh every year could build a corpus of more than ₹55.14 lakh over 18 years. If contributions and the account continue over a much longer period under applicable extension rules, the illustration projects a corpus exceeding ₹6.75 crore by around age 60.

The long-term numbers, however, depend heavily on the assumed interest rate. PPF rates are notified periodically and can change, so a 7.1% rate should not be assumed to remain unchanged for several decades.

Can You Open a PPF Account for a Child?

Yes. According to the supplied report, a parent or legal guardian can open a PPF account in the name of a minor.

There is no minimum age requirement for the child mentioned in the report, which means an account can be opened even for a newborn.

The account can be opened through an eligi