New Delhi: Every person dreams of ensuring that their children face no future difficulties. To achieve this, people enrol their children in various schemes. If you have children in your family, you can financially empower their future by joining some schemes.
Investing in schemes like Sukanya Samriddhi Yojana, NPS Vatsalya Yojana, and Public Provident Fund Fixed Deposits can generate substantial funds for your children. They also offer tax benefits and guarantee good returns. We are going to share some investments tailored to your child’s needs that can generate substantial profits.
Sukanya Samriddhi Yojana
The Sukanya Samriddhi Yojana strengthens the future of daughters. The government offers an annual interest rate of 8.2% upon investment. An account under this scheme can be opened for a mere ₹250, with a maturity period of 21 years.
NPS Vatsalya Yojana
The Central Government’s NPS Vatsalya Yojana is unique. It is considered a good way for children to start retirement savings. This account can be opened for children under 18 years of age. The minimum age limit is 18 years. This account can be converted to a regular NPS Tier 1 account. You can deposit up to ₹1,000 per year.
PPF is also a good option
PPF is also a good investment option for minor children. It has a lock-in period of 15 years. Tax benefits and compounding contribute to its benefits. Most importantly, parents can open a PPF account in the name of a minor child. Partial withdrawals can be made if needed, subject to certain conditions.
RD Schemes are also an opportunity
Many banks offer RD schemes for children. By making small monthly investments, parents can grow their savings at a high interest rate. Furthermore, the low monthly deposit makes it a great option for middle-class families.
FDs for Children
FDs for children are also considered a good option. This scheme allows for a lump sum deposit, which is more than a savings account. Special schemes from several banks, such as the PNB Balika Shiksha Scheme, Yes Bank FDs for Children, and SBI FDs for Minors, are also available.
