The Public Provident Fund (PPF) is a popular savings scheme for children, offering a 7.1% interest rate and tax-free returns. A PPF account can be opened by a parent or legal guardian, requiring KYC documents and can be operated until the child turns 18. One of the main points of confusion is the contribution limit, which is capped at ₹1.5 lakh per financial year across all PPF accounts held by an individual. Contributions beyond this limit do not qualify for tax benefits. The money invested is treated as a gift, and while it typically adds to the higher-earning parent's income, the tax-exempt interest mitigates any additional tax liability. PPF accounts have a lock-in period of 15 years, with options to extend in five-year blocks. Withdrawals can be made after five years, with conditions for partial and premature closures. PPF serves as a stable investment in a child's financial portfolio but should be combined with other instruments like equity mutual funds and fixed deposits for comprehensive financial planning.