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PPF Account Rules 2026: Opening More Than One Account Can Lead to Interest & Tax Loss

Vikram Singh
By Vikram Singh
3 min read
Published: 28 Feb 2026
PPF ACCOUNT
PPF Account Rule: In India, the Public Provident Fund (PPF) remains the preferred choice for millions of people for safe investment and substantial tax savings. The government guarantee and attractive interest rates make everyone eager to invest in it, but investors often wonder whether they can open more than one PPF account.
If you’re also confused, you need to be very careful, as government regulations allow a person to have only one PPF account in their name across the country. If you accidentally or intentionally open two accounts, you’ll not only suffer significant interest losses but also lose tax benefits. In this article, we’ll discuss in detail the rules related to PPF and how you can safely grow your wealth.

Personal Rules for PPF Accounts

PPF Account Rules 2025
PPF Account Rules 2025
The Indian government’s law under the Public Provident Fund Scheme is very clear and strict, stating that a citizen can have only one active account in their name in any bank or post office across the country. If someone accidentally opens a second account, it is considered “irregular,” and in such a situation, your second account is immediately closed.
The amount deposited in the second account is merged with your first account, but the biggest disadvantage is that you are not paid even a single rupee of interest on the second account. The government has enacted this strict rule to prevent anyone from taking undue advantage of tax exemptions beyond their prescribed limit and to maintain complete transparency in the investment system.

Excellent Features of PPF Investment

Before investing in PPF, it is very important to understand its nuances because this scheme operates on the EEE model. This means that the money you deposit is tax-deductible, and the interest earned and the entire maturity amount are also completely tax-free. Currently, the government is offering an annual interest rate of 7.1%, which is completely safe.
The maturity period of this account is 15 years, which you can extend in 5-year blocks as per your convenience. Regarding investment limits, you can deposit a minimum of ₹500 and a maximum of ₹1.5 lakh in a financial year. Keep in mind that opening a joint account in PPF is not permitted.

Accounts in the Name of Children

Many parents also open PPF accounts in the names of their minor children, which is an excellent way to build a strong fund for their future higher education or marriage. However, there is a major technical caveat here that every investor needs to understand.
Even if you maintain two separate accounts in your name and your child’s name, your total annual investment limit for both accounts combined will only be considered ₹1.5 lakh. This means that if you deposit ₹1.5 lakh in each account, the Income Tax Department will only provide tax exemption and interest benefits on the remaining ₹1.5 lakh.
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