2 PPF Accounts? You Could Lose All Interest

Many Indians think they can open PPF accounts in multiple banks to save more tax. They cannot. The government allows only one PPF account per person. A second account gets zero interest and must be merged or closed.

Here's what happened: PPF rules under the Public Provident Fund Scheme 2019 strictly permit only one active account per individual across all banks and post offices in India.. If a second PPF account is discovered, authorities treat it as irregular — it earns 0% interest from the date of opening, effectively wasting every rupee deposited.. The first account continues normally, but the second must be closed or merged into the first, with no interest credited for the entire period it was held..

What you should do: Check right now whether PPF accounts exist under your name in both a bank and a post office — login to your bank's netbanking and visit your nearest post office branch.. If you opened a second PPF account by mistake, contact the bank or post office branch manager immediately and request a merger into your primary account before next interest credit.. Avoid opening PPF for a minor child thinking it adds to your own limit — a minor's PPF is separate, but the parent's combined deposit limit across both accounts is still ₹1.5 lakh per year..

PPF interest is calculated on the lowest balance between the 5th and last day of each month — always deposit before the 5th to earn full monthly interest, not after.