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To secure the future of children, right investment at the right time is very important. Options like Sukanya Samriddhi Yojana, NPS Vatsalya, PPF, Mutual Fund, RD, FD can convert small savings into big funds. You can secure the future of your children by investing in these schemes now.
To secure the future of children, it is very important to choose the right investment option. Investments like Sukanya Samriddhi Yojana, NPS Vatsalya Yojana, Public Provident Fund, Fixed Deposit not only help in covering big expenses like education and marriage, but also assure tax benefits and better returns.
Today we tell you the 6 most reliable and popular investment options for children, through which even small savings can turn into a huge amount.
Sukanya Samriddhi Yojana (SSY)
This scheme has been specially designed to secure the future of girls. This scheme of the government currently gives the highest interest rate of 8.2% along with tax benefits. The account can be opened with just Rs 250 and its maturity is in 21 years.
nps vatsalya scheme
This scheme is a means for children to start retirement savings. This account can be opened for children below 18 years of age. As soon as the person turns 18 years old, this account gets converted into normal NPS Tier I. In this scheme you can deposit Rs 1,000 annually.
PPF for minors Public Provident Fund (PPF) is a safe and long term investment option. Its lock-in period of 15 years, tax benefits and compounding make it extremely beneficial. The guardian can open a PPF account in the name of the minor and can also make partial withdrawal if needed, subject to certain conditions.
RD for kids Many banks offer special RD schemes for children, in which parents can increase their savings at a fixed interest rate by making small monthly investments. Due to low monthly deposits, it is a better option for middle class families.
Fixed Deposit for Children If you want a safe investment, then FD for children is a good option. In this, a lump sum amount is deposited and fixed interest is received, which is higher than a savings account. Special schemes of many banks like PNB Balika Shiksha Scheme, Yes Bank FD for Children and SBI FD for Minors are available.
mutual funds for children Mutual funds like HDFC Children’s Fund, ICICI Prudential Child Care Fund – Gift Plan and UTI Children’s Equity Fund have been created keeping in mind the future needs of children. These funds are market linked, so there is a possibility of better returns in the long term.
