Sukanya Samriddhi Yojana
In today’s time, it has become very important to make right investment to strengthen the future of the daughter. There are a variety of safe and profitable options available to parents, which help in creating strong funds in the long run for education, marriage and other needs. Government schemes offer protection along with tax exemption, while market-based investments can offer higher returns. Such major options are given below.
Child Insurance Plan
Child insurance plan is a reliable option for parents, which includes both insurance and savings. It provides financial security in case of any untoward incident and also prepares funds for the daughter’s education and other needs. These plans provide tax exemption under 80C and many plans also offer money-back option.
Sukanya Samriddhi Yojana (SSY)
- Government’s Sukanya Samriddhi Yojana is one of the safest and high return giving schemes for daughters.
- Interest rate around 7.6%
- Tax benefits under 80C
Interest and maturity amount are completely tax-free
An account can be opened with a minimum of ₹250, and the scheme lasts for 21 years or till the daughter gets married at 18. This scheme is an excellent long-term option for education and marriage.
PPF safe investment for long term
Public Provident Fund (PPF) is also a safe government scheme, whose interest rate remains around 7.1%. It is suitable for long-term savings due to lock-in of 15 years and tax-free returns. Partial withdrawal facility is also available after 6 years.
Post Office MIS, NSC: Options with guaranteed returns
Post Office Monthly Income Scheme (POMIS) provides income every month with 6.6% interest. Its tenure is 5 years and is suitable for parents looking for stable income. National Savings Certificate (NSC) gives 7.7% interest and also tax exemption under 80C. Tenure options of 5 and 10 years are available.
Mutual funds and gold
If parents can take some risk, mutual funds can give better returns in the long run. At the same time, gold is also considered a traditional safe investment, whose value increases with time.
FD and RD easy and safe investment
Fixed Deposit (FD) and Recurring Deposit (RD) are low-risk stable investments, which offer interest ranging from 6.5% to 7.5%. These are good options for short and medium term goals.