PPF account for minors

[Ssreek]

We're planning to open a ppf account for my nephew. He already has a minor account in bank, account opened and managed by his father.
As it is a minor account, ppf account cannot be opened online and father has to visit branch and submit application.

I have a few questions regarding this.

1. Is ppf scheme the best option for a minor? He's 2 years old.
2. In future when the account matures and the child withdraws money and closes the account, can he open a new ppf account later?
3. Suggest if there are any other better plans with stable/consistent returns.

 

[logistopath]

Is ppf scheme the best option for a minor? He's 2 years old.

Probably the best risk-free option. Mutual funds/stocks may give more returns, but are subject to market risks. If it is a girl child, sukanya samriddhi yojana is better, since it gives slightly more interest rate than PPF.

In future when the account matures and the child withdraws money and closes the account, can he open a new ppf account later?

1. You can continue to extend the term of PPF in blocks of 5 years indefinitely. You may or may not decide to add new funds during that period. Interest will continue to accumulate based on whatever balance is available in the account then.
2. You may open a new account after the old one matures and you have withdrawn all funds.

Suggest if there are any other better plans with stable/consistent returns.

Not really sure. Please wait for inputs from other members.

 

[axeman]

We're planning to open a ppf account for my nephew. He already has a minor account in bank, account opened and managed by his father.
As it is a minor account, ppf account cannot be opened online and father has to visit branch and submit application.

I have a few questions regarding this.

1. Is ppf scheme the best option for a minor? He's 2 years old.
2. In future when the account matures and the child withdraws money and closes the account, can he open a new ppf account later?
3. Suggest if there are any other better plans with stable/consistent returns.

1. Yes, try and put both parents on the account so either can manage it, instead of just one
2. no need, the account can be extended by 5 year blocks. Plus - use the account at the 8-10 year age to teach the kid the wonders of interest and compound interest.
3. boys - do a large cap SIP/ MF. girls (not for nephew), you can do a SSY.