Schemes for Child: Financial security is more crucial now than ever before. Parents are beginning to think about their kids’ financial futures just a few years after they’re born. With the costs of education and healthcare continuously climbing, it’s essential to kick off financial planning right from the start. Here are three smart investments that, if you start now, can help you fulfill your future needs.
SSY
Sukanya Samriddhi Yojana (SSY) is a well-known government-supported savings plan aimed at securing your daughter’s future. Initiated under the “Save the Girl Child, Educate the Girl Child” campaign, this scheme provides tax advantages and boasts the highest interest rates among small savings plans. At present, this scheme offers an interest rate of 8.2%, making it one of the most advantageous choices for parents. You can open an account with just Rs 250, and the scheme matures after 21 years. This makes it a solid choice for long-term objectives like higher education or marriage.
Fixed Deposits for Children
Fixed deposits, or FDs, are seen as a solid low-risk investment choice. You can set them up at banks and post offices. FDs guarantee returns and offer higher interest rates than standard savings accounts. Some banks have special FD schemes tailored specifically for children, which often come with slightly higher interest rates.
NPS Vatsalya Yojana
The NPS Vatsalya Yojana is an excellent option for parents who want to create substantial long-term wealth for their child. This plan allows parents or guardians to open a National Pension System account for a minor. When the child turns 18, the account is automatically transferred to a standard NPS account.
The minimum annual investment is ₹1,000, with no upper limit. The interest rate ranges from 9.5% to 10%. This money remains invested over several years, allowing it to accumulate substantial wealth through the power of compound interest. This helps children build a strong retirement fund from an early age.
Choosing the right investment plan can make a big difference in your child’s future financial security. With a mix of government-supported and low-risk options, parents can start early and build a strong foundation for the years to come.
