To ensure that their children’s future remains financially secure in the coming years, parents can start savings plans for their children. Schemes for many such children have been started by the Government of India, which promise not only security but also high-interest rates. Here you will read about post office schemes for children, funds and other savings plans for them.
What is the scheme for small children in the post office?
Savings schemes for children include many types of schemes, first of all we are telling about the post office scheme for children. There are many post office schemes for children, which parents can choose from as per their wish.
1. Post Office Monthly Income Scheme
If you want to choose a completely safe scheme for children, then you can start the Post Office Monthly Income Scheme. This is a savings scheme for children, in which money has to be invested in one go and interest can be availed every month.
- You can open this scheme by going to any post office in your area.
- To open it, you can deposit a minimum of Rs 1,000 and a maximum of Rs 4,50,000 (four and a half lakh).
- Interest is given on this scheme at the rate of 6.6%.
- This post office savings scheme for children can be availed once they attain the age of 10 years. If the child is younger than 10 years, then this account can be opened in the name of the parents.
- This scheme is with a maturity of 5 years. That means this scheme can be closed after 5 years.
2. Post Office Recurring Deposit Scheme
The Post Office Recurring Deposit Scheme is also a good scheme for children. What is its specialty, how can it be opened, read below.
- Its name is included in the savings plans for children aged 10 years and above.
- If the child is below 10 years of age, then this scheme can be started in the name of the parents on behalf of the child.
- It can be opened with a minimum deposit of Rs 100.
- Its specialty is that there is no limit on the maximum amount deposited in this screen.
- In this, guaranteed return interest is available at the rate of 5.8%.
- This scheme is completed in 5 years. If you want to increase it further, you will have to request for it at the post office.
3. Sukanya Samriddhi Yojana
Sukanya Samriddhi Yojana (SSY) benefits have been released only for girls. For this it is necessary for the girl to be an Indian. Scroll to know what are the other special things related to this.
- The benefit of this scheme can be availed in the name of girls aged 10 years or more.
- If the girl’s age is less than 10 years, then this scheme can be opened in her place in the name of her parents.
- Sukanya Samriddhi Yojana can be opened in any government bank or post office.
- In this scheme, interest is available at the rate of 7.6%.
- In this scheme, a minimum amount of Rs 250 has to be deposited annually.
- The maximum amount limit is Rs 1,50,000.
- Not only this, through this scheme tax exemption can also be availed under Section 80C of the Investment Income Tax Act.
- After starting this scheme, a fixed amount has to be deposited till the girl turns 15 years of age.
- This scheme matures when the boy completes 21 years of age.
- Apart from this, if the girl gets married before the age of 21 years, the scheme can also be matured.
4. Public Provident Fund
Public Provident Fund is also called PPF. This is a long-term savings plan, which can be included in the savings plan for children.
- In this scheme, interest is available at the rate of 7.1% every year.
- This scheme can be opened with a minimum of Rs 500 and a maximum of Rs 1,50,000.
- This amount can be deposited in one go or through different installments.
- Minor children cannot directly benefit from this scheme. If a child is not an adult, then the parents can start this scheme in his place.
- It can be opened through any bank or post office.
- If at least an amount of Rs 250 is not deposited in this scheme in any financial year, then the scheme can also be canceled.
- This account can provide tax relief under section 80C.
- In the next two years of opening this account, you can get a loan of up to 25% of the amount deposited.
- This scheme matures in the next 15 years of opening.
- In some emergency situations, this scheme can be discontinued even after 5 years, such as – if the child has expensive education or if he becomes a foreigner. In such a situation, only 6.1% interest rate can be given.
5. Equity Mutual Fund
Equity mutual funds (ETFs) for children give higher returns than post office schemes or any other savings scheme for children. If you want to make a good investment in your child’s education in the future, then you can avail the benefit of the scheme for children.
- This is a type of Systematic Investment Plan (SIP) i.e. Mutual Fund.
- Which can be done for both long and short periods.
- However, its return rate can also be higher in the long run. This could be entirely depending on the fund. That is, if this fund is more risky, then the return interest rate can also be higher.
- For this the child should be a boy. If he is younger than 21 years, his parents can start this fund in his place.
- For this you can talk both online and offline. For this it is also necessary to submit all your documents online.
There are many savings plans for children. In which there are options ranging from post office schemes to mutual funds for children. We hope that you have liked the information given by us related to the scheme for children. You can start any one of the savings plans for children mentioned here or combine them with other schemes and avail the benefits.
