Rs 5,000 monthly PPF savings explained

Opening a PPF for a child allows compounding to work over more years, making early contributions advantageous.

Investing Rs 5,000 per month in a PPF for a child can grow to a significant corpus by the time the child turns 18 (maturity age for minor PPF).

PPF accounts for minors are operated by the parent or guardian until the child turns 18.

The PPF interest rate is set quarterly by the government and is currently 7.1% per annum (compounded annually).

PPF investments enjoy tax benefits under Section 80C of the Income Tax Act, and the interest and maturity proceeds are tax-free.