Public Provident Fund (PPF) for Minors 

PPF is a government-backed long-term savings scheme that can be used for a minor's long-term financial planning, subject to the scheme rules.

For the July–September 2026 quarter, the PPF interest rate is 7.1% per annum. Small-savings rates are reviewed periodically by the government, so the rate should not be treated as permanently fixed.

PPF has a 15-year base tenure, with extension provisions under the applicable rules.

Why parents may consider PPF

PPF can provide:

• government-backed savings

• long-term discipline

• relatively predictable interest compared with market-linked assets

• tax advantages subject to prevailing law

• a structured savings vehicle for long-term goals

However, PPF is not designed to provide the liquidity of a normal savings account or equity mutual fund.

Important PPF point for parents

Do not assume that a minor's PPF account simply matures 15 years after the child's birthday.

PPF maturity is governed by the scheme's financial-year-based rules. Parents should therefore calculate the actual maturity date from the account's opening rules rather than simply adding 15 years to the child's age.

The current PPF rate is also subject to quarterly government review.

Sukanya Samriddhi Yojana for Eligible Girl Children

Sukanya Samriddhi Yojana is a government-backed savings scheme designed specifically for eligible girl children.

For the July–September 2026 quarter, the interest rate is 8.2% per annum. The rate is government-notified and can change in future quarters.

The scheme is subject to specific eligibility, contribution, withdrawal and maturity rules.

Who can consider SSY?

Families with an eligible girl child below the prescribed age can consider SSY for long-term goals such as education.

SSY can be particularly relevant where the family wants:

• a government-backed savings structure

• long-term discipline

• a dedicated girl-child financial goal

• tax-efficient treatment under applicable rules

It should not automatically be considered the "best" investment for every family. The appropriate choice depends on the family's overall financial plan and objectives. 

Sovereign Gold Bonds: What Minors Need to Know in 2026 

Sovereign Gold Bonds require special treatment in a current 2026 guide.

The RBI's official SGB website continues to publish information on outstanding bonds and redemption schedules, including 2026 premature-redemption notices.

However, parents should not treat SGBs as a routinely available fresh-issue investment option in the same way as a mutual fund SIP or PPF.

For a child-focused portfolio, gold exposure can also be obtained through other permitted routes, but each has different costs, risks, liquidity and taxation.

The important point is:

Check whether a fresh SGB tranche is actually available before presenting SGBs as an option for a new investment.

For existing SGB holdings, applicable transfer, holding and redemption rules should be checked with the bank, broker or relevant authority.