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Old 7th January 2014, 13:08   #301
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Default Re: Which bank to open an account in?

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I think the question is whether you can put 1 L in your childs name & 1 L in your name as long as you only claim exemption for the first 1 L.
Ok. To the best of my knowledge, you can cheat by doing this in different banks. But ultimately, when the PPF board comes to know that you have exceeded 1L investment, they will either pull back the interest.
You are not eligible to invest beyond 1 Lakh.
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Old 7th January 2014, 14:43   #302
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Default Re: Which bank to open an account in?

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Originally Posted by snorting bull View Post
Ok. To the best of my knowledge, you can cheat by doing this in different banks. But ultimately, when the PPF board comes to know that you have exceeded 1L investment, they will either pull back the interest.
You are not eligible to invest beyond 1 Lakh.
You are not eligible to invest 1 L per account. You can have one account per person. I think even non-working people can have an account & put a separate 1 L in it as long as exemption isn't claimed for it. I think this is fine for a non-working spouse - however is it ok for a child also. The link I gave seems to say so.
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Old 7th January 2014, 14:47   #303
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Default Re: Which bank to open an account in?

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Whats the benefit of opening a PPF account so early in life?
Benefit: PPF account has a 15 year lock in period. Hence from investment point of view it is not liquid at all. By starting early, by the time the child is 18, PPF account is converted into a highly liquid investment option.
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Old 7th January 2014, 19:25   #304
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You can certainly open PPF in your kids name. But the catch is you cannot claim exemptions. Any investment on a minor will be accounted along with the parent. So you can invest 50K on PPF in your account and another 50K on your child's name and get the exemption under 80C.
I don't want the exemption. I want to know whether I can invest one lakh in my PPF another lakh in my son's PPF in the same FY. I was told it has to be a total of one lakh/person in a FY.
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Originally Posted by carboy View Post

I think the question is whether you can put 1 L in your childs name & 1 L in your name as long as you only claim exemption for the first 1 L.
Exactly.


My other doubt was if I can invest only one lakh total in both mine and my son's account, how does opening an account so early for him make a difference. If the goal for the accumulation is his expenses 15 yrs hence, how does it matter whether it is in my name or his?

Thank you all for your suggestions
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Old 7th January 2014, 20:00   #305
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Default Re: Which bank to open an account in?

The law says

(1) Any individual may, on his own behalf or on behalf of a minor of whom he is the guardian, subscribe to the Public Provident Fund (thereafter referred to as the fund) any amount not less than Rs. 500 and not more than Rs. 70,000 in a year. (Increased to Rs. 1,00,000 from 1.12.2011 vide NOTIFICATION [F.No. 1/9/2011-NS-II], dated 25-11-2011)

Refer to PPF

The interpretation of this is you cannot exceed 1 lakh even if you try to club it with your kid. As these investments are tax free and long term, I would give you a word of caution.

While there are people who get away with it, because of not so tightly coupled systems to identify the defaulters, I believe 15 years is long term to take this risk.
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Old 7th January 2014, 20:28   #306
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Originally Posted by snorting bull View Post
The law says

The interpretation of this is you cannot exceed 1 lakh even if you try to club it with your kid. As these investments are tax free and long term, I would give you a word of caution.

While there are people who get away with it, because of not so tightly coupled systems to identify the defaulters, I believe 15 years is long term to take this risk.
That has been my interpretation too and I have not opened a PPF account for my son.

What I would like to know is what then is the advantage of opening a PPF for my child when I cannot put an extra lakh/yr into it ?
What difference would it make, from an investment perspective, whether the money is in my account or my child's account?
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Old 7th January 2014, 20:47   #307
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Default Re: Which bank to open an account in?

Good - that's been cleared. Now about for a non-working spouse - can you put 1L in your name & 1L in her name as long as you claim deduction only for the first one. Few years back, I was told that this is perfectly fine.
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Old 7th January 2014, 20:58   #308
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Default Re: Which bank to open an account in?

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What difference would it make, from an investment perspective, whether the money is in my account or my child's account?
That's a good question. One thing I can think of is, say if your kid is 10 years and after 8 years he becomes a major, I tend to think that he can invest on his own for the next 9 years to get back the whole money earlier.


I really don't know how it works when the minor account becomes major.
Partially you lose the purpose of PPF too this way

Last edited by snorting bull : 7th January 2014 at 21:10.
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Old 7th January 2014, 21:02   #309
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Default Re: Which bank to open an account in?

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Good - that's been cleared. Now about for a non-working spouse - can you put 1L in your name & 1L in her name as long as you claim deduction only for the first one. Few years back, I was told that this is perfectly fine.
That's perfectly legal. The law is talking about major individuals. Every major individual greater than 18 years in your household is eligible for exemptions and a 1 lakh investment.
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Old 7th January 2014, 21:43   #310
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Default Re: Which bank to open an account in?

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That's perfectly legal. The law is talking about major individuals. Every major individual greater than 18 years in your household is eligible for exemptions and a 1 lakh investment.
Yes, no income means not eligible for exemptions.
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Old 26th April 2014, 22:57   #311
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Default Re: Which bank to open an account in?

Recently opened an account in sbi, sales people pushing me for demat account for free, I don't use but they said it will beneficial for you in future, they saying its limited time offer so I agreed, Is there any catch or hidden charges ?
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Old 27th April 2014, 10:49   #312
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Default Re: Which bank to open an account in?

I have 3 PPF accounts and every year I deposit 1 lakh in each.
- One in my name (only for which I claim tax exemption)
- One in my wife's name (No tax exemption claimed by her)
- One in my minor son's name (for which my wife is guardian. No tax exemption claimed).

This was suggested to me by the bank and perfectly legal according to bank.

Last edited by AltoLXI : 27th April 2014 at 10:52. Reason: missed specifying type of a/c
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Old 27th April 2014, 17:38   #313
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Default Re: Which bank to open an account in?

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Originally Posted by AltoLXI View Post
I have 3 PPF accounts and every year I deposit 1 lakh in each.
- One in my name (only for which I claim tax exemption)
- One in my wife's name (No tax exemption claimed by her)
- One in my minor son's name (for which my wife is guardian. No tax exemption claimed).

This was suggested to me by the bank and perfectly legal according to bank.
Yes. This is legal and one of the best things to do. PPF is one of the few FD kind of investment in India where interest is tax free.
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Old 27th April 2014, 22:53   #314
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Default Re: Which bank to open an account in?

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Recently opened an account in sbi, sales people pushing me for demat account for free, I don't use but they said it will beneficial for you in future, they saying its limited time offer so I agreed, Is there any catch or hidden charges ?
It is good to have a DEMAT & trading account opened when you have time, in case you want to invest in stocks all of a sudden (when the market falls 2000 points for example).

Check
1. Check if it is a lifetime free account of just 1st yr fee waiver.
2. Is it mandatory use it with the SBI trading account or can you link it to other brokers? if so, which brokerages?
3. If SBI Trading account is mandatory, what are the brokerage charges? (if 0.3% is the brokerage, then you can opt for SBI trading account as well). Any mandatory clauses (like minimum this much trade/this many trades in a year etc)

If you dont intend to invest in shares in near future, then you can ignore this for the time being.
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Old 3rd June 2014, 07:47   #315
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Default Re: Which bank to open an account in?

Hello guys,
Need some urgent help on this. My office has tie up with three banks, ICICI, Citi and Corporation(Nationalised). I need to open a salary account in one of them. I need an account which allows either zero balance or a very low balance limit (like 1000). I'm not interested in taking a credit card at the moment. I'm a noob when it comes to banks. So, please let me know ASAP which one is the best overall and rate them in your order of preference.

Thanks in advance.
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