SSY, NPS Vatsalya, PPF: Government investment schemes are crucial for ensuring financial security and a better future for children. The recently launched NPS Vatsalya Yojana, Sukanya Samriddhi Yojana (SSY), and Public Provident Fund (PPF) are some of the popular schemes that investors can choose from based on their financial goals.
The NPS Vatsalya plan, for children up to 18 years of age, offers market-linked investments and offers an average return of 9.5% to 10%. This plan allows children to benefit from compound interest and save for retirement. 25% of the corpus can be withdrawn after three years for education or emergencies. This plan also offers Section 80C and additional Section 80CCD(1B) tax deductions.
Meanwhile, the Sukanya Samriddhi Yojana (Samriddhi Yojana) is specifically designed for girls. It offers a government-guaranteed interest rate of 8.2%, which is safe and tax-free. The funds in this scheme are not very liquid, but it is ideal for education and marriage, as 50% of the funds can be withdrawn after the age of 18. Investments in this scheme are completely tax-free.
The PPF scheme is also available for minors and comes with a lock-in period of 15 years. Its interest rate is 7.1%, which provides stability and security. This scheme offers tax benefits and is suitable for long-term investments. If you’re looking to build long-term savings and a retirement fund for your children, the NPS Vatsalya may be a better option. While the Sukanya Samriddhi Yojana (SSY) is a safe and high-interest option for girls, the PPF scheme is suitable for families seeking a stable and secure investment. When investing, consider your priorities, risk tolerance, and financial goals before choosing the right plan.
Desclaimer: For any financial invest anywhere on your own responsibility, Times Bull will not be responsible for it.