These child plans are excellent for your daughter; they will cover everything from her education to her wedding expenses..
Investing wisely today is crucial for securing your daughter's future. Parents have several safe and profitable options available that help build a strong fund for their education, marriage, and other needs in the long term. Government schemes offer security with tax benefits, while market-linked investments can provide higher returns. Key options are listed below.
Child Insurance Plans
Child insurance plans are a reliable option for parents, combining both insurance and savings. They provide financial security in case of unforeseen circumstances and also build a fund for the daughter's education and other needs. These plans offer tax benefits under Section 80C, and many plans also offer a money-back option.
Sukanya Samriddhi Yojana (SSY)
The government's Sukanya Samriddhi Yojana is one of the safest and highest-yielding schemes for daughters.
Interest rate: Approximately 7.6%
Tax benefits under Section 80C
Interest and maturity amounts are completely tax-free
An account can be opened with a minimum of ₹250, and the scheme runs for 21 years or until the daughter gets married at 18 years of age. This scheme is an excellent long-term option for education and marriage.
PPF: A Safe Investment for the Long Term
The Public Provident Fund (PPF) is another secure government scheme with an interest rate of around 7.1%. Its 15-year lock-in period and tax-free returns make it suitable for long-term savings. Partial withdrawal is also available after 6 years.
Post Office MIS, NSC: Options with Guaranteed Returns
The Post Office Monthly Income Scheme (POMIS) provides a monthly income with a 6.6% interest rate. It has a 5-year tenure and is suitable for parents seeking a stable income. The National Savings Certificate (NSC) offers a 7.7% interest rate and tax benefits under Section 80C. Options with 5 and 10-year tenures are available. Mutual Funds and Gold
If parents can tolerate a little risk, mutual funds can offer better returns in the long term. Gold is also considered a traditional safe investment, whose value tends to increase over time.
FDs and RDs: Easy and Safe Investments
Fixed Deposits (FDs) and Recurring Deposits (RDs) are low-risk, stable investments that offer interest rates of up to 6.5%-7.5%. These are good options for short and medium-term goals.
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