One Person, One PPF Account: Government Tightens Rules to Prevent Multiple Holdings

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Scoring a Public Provident Fund account is like landing a star striker for your retirement team. It brings massive tax breaks, solid interest, and the kind of safety you only get with a government-backed defense. But don't think you can stack the field by opening multiple accounts to bypass the limits. The Ministry of Finance has very strict rules on the books, and if you try to sneak a second account past the goalie, you’re going to get penalized.

The rulebook is bone-dry but lethal: one person, one account. Period. It doesn't matter if you try to open one at a big-name bank like SBI and another at a local Post Office. The system will eventually flag the play. If you end up with two accounts by “mistake,” that second one becomes an irregular benchwarmer. It won't earn a single rupee of interest. You might even have to jump through major hoops, like writing to the Ministry of Finance in New Delhi, just to merge them and save your principal.

There is one specific substitution allowed in this league. Parents can open a separate account for a minor child. However, the total investment across both the parents' and the child's accounts cannot exceed the 1.5 lakh rupee salary cap per year. If you over-fund the pot, the extra cash sits on the sidelines without earning interest. Once the kid hits eighteen, they take full control of the jersey and manage the account themselves.

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The current interest rate is sitting at a steady 7.1 percent, which is a decent yield for a 15-year marathon. You can even extend the contract in five-year blocks if you aren't ready to hang up the boots. Just remember that trying to play the system with multiple accounts is a rookie mistake that will cost you your earnings. Stick to the single-account strategy, maximize your 1.5 lakh limit, and let the compound interest do the heavy lifting for your financial championship.