In the present era, everything from education to health care is becoming expensive. Keeping this in view, parents have started securing the future of their children. From the time a child is born, parents start investing in their name. So that when they grow up, they can be helped to stand on their own feet. For this, parents are investing in government schemes and stock market related schemes. Today we have brought before you such schemes, which are related to children. In which parents can secure the future of their children by investing now.
Sukanya Samriddhi Yojana
Sukanya Samriddhi Yojana (SSY) is a government small savings scheme. This scheme has been specially designed to secure the future of the daughter. This scheme, started under the Beti Bachao Beti Padhao scheme, gives the highest return on principal amount among tax benefits and small saving schemes. As per the latest interest rates, Sukanya Samriddhi Yojana offers the highest interest rate among all small savings schemes at 8.2 per cent. Any person can open an SSY account for his/her daughter and start investing with just Rs 250. The maturity period of this scheme is 21 years from the date of account opening.
nps vatsalya scheme
NPS Vatsalya Yojana is a scheme designed for minors under the National Pension System (NPS). It provides the facility to parents or guardians to open retirement savings accounts for their children till the age of 18 years. Once the child turns 18, this account automatically converts to a standard NPS Tier I account, allowing retirement savings to start early and grow through compounding interest. The minimum annual contribution is Rs 1,000, with no upper limit.
ppf for minors
Public Provident Fund (PPF) for minors can be an effective way to create a long-term savings fund for the future needs of the child. Some of the key features of PPF account include lock-in period of 15 years, tax benefits, compound interest etc. Parents can open a PPF account on behalf of a minor. Partial withdrawal is possible only under specific circumstances, and the funds must be used only for the benefit of the minor.
Recurring Deposit Schemes for Children
Many banks offer special recurring deposit (RD) schemes for children which offer benefits like lower investment amount and relatively higher interest rates. A predetermined amount is deposited every month for a fixed period in the RD account. Additionally, account holders enjoy a fixed interest rate on their savings. Interest rates may vary from bank to bank.
mutual funds for children
Mutual funds for children work like normal mutual funds, but are designed to help parents invest for the child’s future expenses. Some popular mutual fund schemes include HDFC Children’s Fund, ICICI Prudential Child Care Fund – Gift Plan, Tata Young Citizens Fund and UTI Children’s Equity Fund.
FD for children
FDs are generally considered to provide reliable and consistent long-term investment returns, making it a preferred option among conservative investors. Investors deposit a lump sum amount and earn interest on the total amount. Fixed deposits offer higher interest rates than savings accounts, making it an attractive option for conservative investors.
Some banks offer FD schemes specially designed for children. These FDs usually offer higher interest rates; However, this rate may vary from bank to bank. PNB Girl Child Education Scheme, PNB Uttam Non-Callable Term Deposit Scheme, Yes Bank Fixed Deposit for Children, and SBI FD for Minor Child are some examples of FD schemes launched especially for children.