The need to invest in your child's future is an increasing need. Inflation and increasing living expenses, making it tough for coming generations to manage the wide-ranging demands of their lifestyles. To build a considerable corpus for your child, you need to start planning and investing in advance. Fortunately, there are various child savings plan that can give good returns in the long run.Read more
Insurer pays your premiums in your absence
Invest ₹10k/month and your child gets ₹1 Cr tax free*
Save upto ₹46,800 in tax under Section 80(C)
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
Nothing Is More Important Than Securing Your Child's Future
Invest ₹10k/month your child will get ₹1 Cr Tax Free*
Child Savings Plans are plans that offer the dual benefits of investment with insurance. You can invest in these plans to save for your child's future education, health, and marriage.
If you invest in a child savings scheme, you can raise funds for the child's needs when demands arise. In the unfortunate event of your death, a kids savings plan enables your child to receive a lump sum amount. It could prove beneficial for the child with their education & general needs. You have the option to avail of loans against the plan as well.
Here is a list of child savings plans for you to choose from:
Sukanya Samriddhi Scheme - This plan is from the Government of India to save and educate the girl child. You can open the scheme account at any authorized commercial bank branch or post office. The primary condition is your daughter should not be above 10 years of age. The minimum required deposit is Rs. 250, and the maximum amount annually is Rs. 1.5 lakhs. Investments are eligible for deductions under Sec 80C of the IT Act.
*Tax benefit is subject to changes in tax laws. Standard T&C apply."
Investments in Recurring Deposits - You can depend on recurring deposits in banks or post offices because their returns are relatively higher. The RD scheme is an ideal option to ensure sufficient amounts in critical situations with minimal investment risk.
Investments in PPF - Public provident funds are excellent investment types with a lock-in period ranging up to 15 years. The scheme is suitable for your child's investment if you are looking for stable returns. You can opt for the account via banks or post offices with a minimum investment of Rs. 500 and maximum investment of Rs. 1.5 lakhs.
Investments in NSC – The National Saving Certificate or NSC is a proven fixed income method to invest in your child's education. The plan offers low risk with tenure for five years. Upon maturity, you can reinvest in the plan. The minimum cost is Rs.100. Tax benefits are available on this scheme for up to Rs. 1.5 lakhs investment.
Investments in ULIP - Unit Linked Insurance Plans are the best options for low-risk investors. The annual return rate is 4-6%. You will learn about the best ULIP schemes under the child savings plan in the next section.
Here are the best child savings plan to invest in India. Let’s take a look:
|Name of the Plan||Benefits|
|Aditya Birla Sun Life Insurance Vision Star Plan||
|Aegon Life iMaximize Insurance Plan||
|Ageas Federal Dream Builder Child Plan||
|Bajaj Allianz Young Assure Child Plan||
|Bharti AXA Life Child Advantage Plan||
|Canara HSBC Smart Junior Plan||
|Exide Life New Creating Life Regular Pay Plan||
|Exide Life New Creating Life Plus Plan||
|HDFC SL Youngstar Super Premium Child Plan||
|Kotak Headstart Child Assure Plan||
|LIC -New Children's Money Back Plan||
|Max Life Shiksha Plus Super||
|PNB Metlife Smart Child Plan||
|Pramerica Rakshak Gold Plan||
|Sahara Shubh Nivesh Jeevan Bima||
|SBI Life - Smart Champ Insurance Plan||
|SBI Life - Smart Scholar||
|Shriram Life New Shri Vidya Child Plan||
|Star Life Bright Child Plan||
|TATA AIA Super Achiever Plan||
It is a wise choice to opt for a kids savings plan because:
Child plans provide financial relief about your child's potential future needs like education, marriage, health, and other activities.
Prioritize the financial situation of your family at present. Child plans help you decide investment in your child's future.
Rely on a plan that also offers you life cover so that it brings you maximum benefits.
Opt for a plan that offers additional rider benefits. It could be premium waivers, maturity benefits, or benefits specific to a particular sector.
You can invest in a child savings plan if it serves as financial collateral for unexpected scenarios.
You now know the top child savings plans and why your child needs them. You can now proceed with the purchase of your child's investment plan. To decide the ideal plans, consider factors such as risk appetite, age, investment term, age of child, ambition, and available capital. s
Choose Smartly and Invest Wisely.
* Tax benefit is subject to changes in tax laws. Standard T&C apply."
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