Like the Prime Minister’s Sukanya Samriddhi Yojana savings scheme for a girl child, there are several government schemes that can be utilized for your boy child. While these are not specifically referred to as Prime Minster Schemes, these are legitimate savings avenues with the backing of the Indian government. These are offered by the Department of Posts under its Post Office Savings Schemes portfolio.Read more
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Prime Minister savings schemes for a boy child can be availed under post office savings schemes. These schemes are the safest options given that they are backed by the Government of India, enabling you to create a sizeable corpus with zero risk to fund the needs of your boy child.
Given inflation in nearly every sector, it is imperative that you start saving early on for your boy child to give them the life that they deserve. With the government introducing newer savings options, it is important that you understand the best ones that you can use for your child’s needs. Here are the best Post Office savings schemes for a boy child. Note that the parent or guardian can open an account on behalf of the boy child if he is below the age of 10. Those who are above the age of 10 can have their accounts opened in their own name.
The Department of Posts allows parents to open a 15-year PPF account in the name of their boy child.
The PPF account earns interest at the rate of 7.1% (compounded yearly) annually.
A minimum and a maximum deposit of Rs. 500 and Rs. 1.5 Lakhs can be made in a year.
Residents of Tamil Nadu can open a PPF savings account under the Ponmagan Podhuvaippu Nidhi Scheme, designed specifically for a boy child. The interest rate (compounded yearly) for this scheme is 8.7% per annum.
A boy child above the age of 10 can open this account in their own name. A parent can open an account if the child is below 10 years of age.
The deposit earns interest at the rate of 5.8% annually.
A minimum monthly deposit of Rs. 100 has to be done. There is no limit on the maximum amount that can be deposited.
The account matures after 5 years from the date of opening, but can be further extended should you choose to.
A boy child above 10 years can open this account in his own name. Below this age, parents can open it on behalf of their child.
The child has to submit a fresh application form and KYC documents on attaining the age of 18.
The account earns an interest of 4% per annum on the deposit.
A minimum deposit of Rs. 500 has to be made at the time of opening the account.
There is no limit to the maximum amount that one can deposit.
A minor aged 10 and above can have his account in his own name. A single child can have multiple KVP accounts in his name.
A minimum amount of Rs. 1000 has to be deposited. There is no cap on the maximum sum that parents of the boy child can deposit.
The interest rate is 6.9% compounded annually.
Notably, the amount that you invest in this scheme doubles in 124 months.
The interest accrues at 6.8% compounded annually. The interest amount is only payable at maturity.
A minimum sum of Rs. 1000 has to be deposited. There is no maximum limit.
A minor above 10 or the parents of a boy child can invest in this Post Office savings scheme for boys.
The account matures after 5 years, after which the amount can be withdrawn.
The account can be opened with a minimum deposit of Rs. 1000. A maximum sum of Rs. 4.5 Lakhs can be deposited into the account.
The interest on the deposit shall accrue at 6.6% annually and is payable on a monthly basis.
A boy child above the age of 10 years can have an account in his own name. Otherwise, parents have to open one on the behalf of their child.
Prime Minister schemes for boy child can be availed by parents as Post Office Savings schemes offered by the Department of Posts. In addition to being a reliable savings option to fund the future needs of your children, these schemes are largely popular due to the following reasons.
Deposits qualify for tax deductions under Section 80C of the Income Tax Act.
The interest earned is tax-free.
The returns are fixed which significantly reduces the risk factor.
Loans can be availed after the expiry of the first 5 years of opening the account. This varies across different schemes.
The schemes allow you to make premature withdrawals in case you are in urgent need of liquidity. Premature withdrawals are however subject to certain conditions that you should be mindful of.
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