Post Office Savings Scheme for Girl Child

List of Post Office Savings Schemes for Girl Child

Following is the list of different post office schemes for girl child, each offering competitive interest rates on your deposits:

1. Details of the Post Office Saving Schemes for Girl Child

   Sukanya Samriddhi Yojana

   The Sukanya Samriddhi Yojana is a girl child scheme offered by the Post Office. It was introduced under the Beti Bachao Beti Padhao initiative by the Government of India. Parents of daughters aged below 10 years can deposit a fixed sum every month to earn interest on the sum. Its features include:

   • Deposits can be made under this best scheme for girl child in the post office for a period of 14 years.
   • The Sukanya Samriddhi Account matures either when the girl child gets married or on completion of 21 years.
   • Only 50% of the deposits can be withdrawn before the maturity date, and this is possible when the girl reaches the age of 18.
   • The current interest rate is set at 8.2%, which is reviewed by the government every quarter.
   • You can use an SSY calculatorto calculate the returns on your investment.
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2. NPS Vatsalya Scheme

   NPS Vatsalya Scheme is a long-term savings and pension plan designed to help parents start financial planning early for their girl child. It builds a retirement fund for the daughter through safe, market-linked investments.

   • Parents or guardians can open this account for their girl child.
   • This long-term investment plan allocates your money in equity, corporate bonds, and government securities.
   • Parents can contribute flexibly based on their budget.
   • Once the girl turns 18, the scheme turns into a regular NPS Tier-I and allows up to 25% of contributions to be withdrawn, 3 times.
   • Contributions are eligible for deductions up to ₹1.5 lakh under Section80CCD(1) and an extra ₹50,000 under Section 80CCD(2)
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3. PLI Children Policy - Bal Jeevan Bima

   The PLI Children Policy – Bal Jeevan Bima is a post office child plan for girl that gives both life insurance and investment options. It helps parents secure their daughter’s future while building a small fund over time.

   • Parents or guardians can buy this Postal Life Insurance policy for girls aged 5 to 20 years.
   • If the parent passes away, future premiums are waived, so the policy continues.
   • The maximum sum assured is ₹ 3 lakh or equal to the sum assured of the parent, whichever is less.
   • At maturity, the girl child gets the total savings along with accrued bonuses.
   • This Post Office kid plan for females ensures financial security for the girl child by offering life insurance coverage.
   • Tax benefits are available on premiums paid under Section 80C, and maturity proceeds are usually tax-free under Section 10(10D).
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4. Public Provident Fund (PPF) 

   Public Provident Fund (PPF) is a safe post office savings scheme for girls that helps their parents build a secure financial future. It is ideal for goals like higher education and long-term financial security.

   • Parents can open a 15-year PPF account in the name of their girl child.
   • The PPF account earns interest at the rate of 7.10% compounded yearly.
   • A minimum and maximum annual deposit of Rs. 500 and Rs. 1.5 Lakhs can be made in the account.
   • Under the EEE category, attractive tax benefits are available, where the contributions qualify under Section 80C, and the maturity amount along with the accrued interest is tax-free.
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5. National Savings Recurring Deposit Account

   The National Savings Recurring Deposit Account is a post office scheme for girl baby that helps parents save small amounts every month for their daughter’s future. It is a good option for short- to medium-term needs.

   • Parents or legal guardians can open this account for a minor girl child.
   • Allows small monthly deposits, which makes it affordable for all families.
   • The Post Office RD interest rates is 6.7% per annum, which is compounded quarterly.
   • This Post Office girl child scheme has a fixed tenure of 5 years, with an option to extend.
   • The maturity amount is paid to the girl child to support her future needs.
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6. Post Office Savings Account

   The Post Office Savings Account is a simple savings plan that helps parents teach their girl child the habit of saving. It offers easy deposits, withdrawals, and steady interest with full government security.

   • Parents or guardians can open the account for a minor girl child.
   • A girl child aged 10 years or above can operate the account on her own.
   • The Post Office Savings Account interest rates are around 4.0% per year.
   • This girl child scheme in the Post Office offers high liquidity, allowing easy withdrawals.
   • The interest is fully exempt up to ₹3,500 for single accounts and ₹7,000 for joint accounts under Section 10(15) of the Income Tax Act.
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7. Kisan Vikas Patra

   Kisan Vikas Patra is a government-backed post office savings scheme for girls that helps parents grow their money safely for their daughter’s future. It is ideal for parents who want guaranteed returns.

   • Parents or legal guardians can open a KVP account for a minor girl child.
   • The Post Office Kisan Vikas Patra offers guaranteed returns as the invested amount doubles after a fixed period.
   • The scheme earns interest at around 7.5% per year, which is compounded annually.
   • There is no maximum investment limit in the girl child scheme in the Post Office.
   • The maturity amount is paid to the girl child, ensuring financial security in their future.
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8. National Savings Certificates (NSC)

   The National Savings Certificate (NSC) is a safe, fixed-return post office girl child scheme that helps parents build a secure fund for their daughter’s future.

   • Parents/guardians can invest in NSC on behalf of their minor girl child.
   • There is a fixed lock-in period of 5 years in the girl child scheme in the Post Office.
   • The Post Office National Savings Certificate earns interest at around 7.7% per year, compounded annually.
   • Investments qualify for tax deduction under Section 80C.
   • The maturity amount is paid to the girl child to meet future goals.
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9. Post Office Time Deposit Scheme (FD)

   Post Office Time Deposit (POTD) is a fixed deposit post office scheme for girl child offered by the Indian Postal Service.

   • The Post Office Time Deposit Scheme interest rates range between 6.90% – 7.50% p.a
   • POTD accounts can be operated individually or jointly, offering flexibility to investors.
   • Minimum deposit is ₹1000 with subsequent deposits in multiples of ₹100.
   • Section 80C allows for a tax deduction for deposits made within a five-year term deposit.
   • The girl child receives the maturity amount, guaranteeing safe and secure financial growth.
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10. Post Office Monthly Income Scheme (POMIS)

    The Post Office Monthly Income Scheme (POMIS) is a government-backed income scheme which provides investors with a monthly income. Guardians can enrol their girl child under this scheme to ensure a monthly income for their child.

    • The program ensures that the female child receives a monthly income and also accrues interest at an annual rate of 7.4%
    • Only the parent or the legal guardian of the girl child is eligible to open a POMIS account in the name of the girl child.
    • It is a secure post office savings initiative for girl children that is subject to a fixed lock-in period of five years.
    • The girl child receives a complete return of the invested quantity upon reaching maturity.
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How to Choose the Best Post Office Scheme for a Girl Child?

You can follow the strategy to choose the right girl child scheme in the Post Office:

• Define Your Goal: Before investing in any saving scheme, it is essential for you to have your goals defined. You can thereafter choose a saving scheme that best suits your goal. You can refer to the following points while choosing the best scheme for your girl child
  • Education: SSY, PPF
  • Marriage: SSY, KVP
  • Monthly income: POMIS
  • Long-term security: NPS Vatsalya.
• Check Eligibility & Age: Ensure that you check the eligibility criteria prescribed by the government and choose and enrol your child into a scheme that she is eligible for.
• Consider Tax Benefits: Try opting for schemes which offer tax benefits. These tax benefits can significantly increase the final maturity amount provided to you at the maturity of the scheme. Schemes with the EEE status are the most tax-friendly schemes.
• Assess Lock-in & Liquidity: When defining goals, also ensure to check the lock-in period of the schemes along with the available liquidity offered by them. You can refer to the following points to check the liquidity and lock-in period of the schemes.
  • Long-term lock-in period: SSY, PPF
  • Medium-term: NSC, RD
  • Liquid options: Savings Account, POMIS
• Diversify Portfolio: Ensure you diversify your portfolio and invest in various government-backed schemes for the girl child to ensure that your investments are secure, bring long-term growth and allow for flexibility as well.
• Monitor & Review: Keep track of interest rates and account performance to ensure they meet your child’s goals.

Post Office Savings Scheme Vs Child Plan

The following table lists the key differences between Post Office savings schemes and child plans.

Conclusion

The Post Office savings schemes for the girl child aim at securing gender equality and women empowerment by equipping them financially for their future endeavours. These schemes not only build a disciplined habit of saving within the parents but also allow girls to grow into educated and economically stable members of society. However, with the rising cost of education and other amenities in today’s economy, it is likely that the corpus built through these schemes might fall short of what is required. Thus, you can also have a look at the best child plans and choose to invest in market-linked instruments for higher returns.