Post Office Scheme for Boy Child

This article will discuss the best post office savings scheme for Boy child in India, and will highlight their key features.  

What are the Best Post Office Savings in India for Boy Child

In India, there are various post office savings schemes available for the benefit of a boy child. These schemes aim to promote savings for the future education and financial security of the child. 

Here is a list of top 6 post office savings scheme for boy child: 

• Ponmagan Podhuvaippu Nidhi Scheme

• Public Provident Fund (PPF)

• National Savings Certificate (NSC)

• Kisan Vikas Patra (KSV)

• Post office Recurring Deposit (RD)

• Post Office Monthly Income Scheme (POMIS)

1. Ponmagan Podhuvaippu Nidhi Scheme

   The Ponmagan Podhuvaippu Nidhi Scheme, introduced by the Tamil Nadu government in 2015, is a social welfare initiative targeted at male children belonging to economically weaker sections of the state. Operating through the Post Office, this scheme aims to provide financial assistance to these students by allowing them to earn high interest on their contributions towards building a corpus for educational expenses.

   Features	Details
   Eligibility	Male child from economically weaker section and a native to the State of Tamil Nadu
   Account Type	Only Single Account Holder
   Who Can Apply?	Minor Child (<10 Years of Age): Guardian can open the account in the name of the child Male Child Above 10 Years of Age: Can open PPNS account himself
   Age Limit	None
   Contribution Amount	Minimum Deposit to Open the Account: Rs. 100  Minimum Annual Deposit: Rs. 500 Maximum Annual Amount: Rs. 1.5 lakhs
   Contribution Payment Options	Lump Sum or 12 Instalments
   Maturity Period	15 years can be extended by 5 years within a year of maturity
   PPNS Interest Rate	9.7% p.a. compounded annually
   Nomination Facility	Available
   Premature Closure Before Maturity	Not Permitted
   Partial Withdrawals	From 7th financial year of opening PPNS Account
   Loan Facility	Available after completion of 3rd financial year of opening the account
   Tax Benefits on Investment	Tax Deductions on Investment of up to Rs. 1.5 lakhs u/ Section 80C of the IT Act, 1961. And the interest earned on the deposits is tax free.

2. Public Provident Fund (PPF)

   Public Provident Fund (PPF) is a popular long-term investment scheme offered by the Government of India. It was introduced in 1968 with the aim of individuals with a safe and secure savings option, as well as encouraging a culture of long-term financial planning and investment among the general public.

   Let us look at some of the PPF Account Details:

   Tenure	15 years
   Current Interest Rate	7.1% p.a
   Minimum Investment	Rs. 500
   Maximum Investment	Rs. 1.5 lakh per annum
   Opening Balance	Rs. 100 a month
   Frequency of Deposit	Once a year
   Mode of Deposit	Cash, cheque, demand draft (DD), or through an online fund transfer
   Mode of Holding	Individual only
   Risk Factor	Minimal
   Tax Benefit	Interest and maturity amounts are tax-free u/s 80C
   Partial withdrawal	Available after the 7th year

   People also read: Child Education Plan

3. National Savings Certificate (NSC)

   The National Savings Certificate (NSC) is a popular savings scheme offered by the Government of India. It is a fixed-income investment option designed to encourage small and mid-level investors to save money while enjoying guaranteed returns which will contribute to the future finances of the boy child. NSC can be purchased from post offices across India and has a fixed maturity period of five years.

   Key Information
   Interest Rate	7.7% per annum
   Minimum Investment	Rs.1,000
   Lock-in Period	5 years
   Risk Profile	Low-risk
   Tax Benefit	Up to Rs.1.5 lakh under Section 80C

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4. Kisan Vikas Patra (KVP)

   Kisan Vikas Patra (KVP) is a savings scheme offered by the Government of India to promote long-term savings among individuals, particularly in rural areas. It is a fixed-income investment option that provides a safe and secure way to invest money while earning guaranteed returns. KVP can be purchased from post offices across India and has a fixed maturity period.

   Key Information
   Interest Rate	7.5% (compounded annually)
   Tenure	115 months
   Investment Amount	Minimum: Rs. 1,000 Maximum: No maximum limit
   Tax Benefits	Tax benefits up to Rs. 1.5 lakh under Section 80C of the Income Tax Act, 1961

5. Post Office Recurring Deposit

   The Post Office Recurring Deposit (RD) is a savings scheme provided by the Indian postal system. It allows parents/guardians to save money in a systematic manner by making regular monthly deposits for the future of their boy child. There is no maximum limit on the deposit amount, giving individuals the flexibility to save according to their financial capacity. The interest on RD is compounded quarterly, helping the savings grow over time. 

   The Post Office Recurring Deposit is a convenient and flexible savings option, encouraging individuals to save regularly and enjoy the benefits of compounded interest while maintaining easy accessibility to their funds when needed.

   Key Information
   Regular Monthly Deposit	Rs.100 (Minimum)
   Tenure	5 years
   Interest rate	6.2% p.a.
   Eligibility	Indian nationality and age over 18 years required for applicants. Minors above 10 years can open accounts. Parents/guardians can open accounts for minors.
   Payment Method	Cash or cheque accepted at post office
   Nomination	The scheme allows nominees to be chosen for payout in case of death.
   Rebate Facility	Option for rebate on advance deposits available, limited to six installments.
   Flexible Deposits	Minimum deposit of Rs. 10 per month with no upper limit.
   Withdrawal	Account holders can withdraw up to 50% of their deposit balance 1 year after opening the account.

6. Post Office Monthly Income Scheme (POMIS)

   Post Office Monthly Income Scheme (POMIS) is a government-backed investment scheme offered by the post office. It is a fixed income scheme that provides individuals with a regular monthly income. The scheme has a tenure of 5 years and offers capital protection, making it a low-risk investment option. 

   Key Information about Post Office Monthly Income Scheme
   Tenure	5 years lock-in period
   Interest Rate	7.4% p.a.
   Risk	Low-risk investment
   Initial Investment	Initial investment starts at Rs.1,000.
   Payout	Payout received one month after the first investment, not at the beginning of every month.
   Multiple accounts	Open multiple accounts, but the total deposit amount across all accounts cannot exceed Rs. 9 lakhs.
   Joint account	Open a joint account with 2 or 3 people. Aggregate investment limit of up to Rs.15 lakhs for the joint account.
   Fund movement	Transfer funds to a recurring deposit (RD) account.
   Nominee	Nominate a family member as a beneficiary in case of the investor's demise during the account's term.

Conclusion

In conclusion, India offers a range of post office savings schemes specifically designed to benefit boy children. These schemes aim to foster financial security, education funding, and long-term savings for the child's future. By leveraging these post office savings options, parents can take proactive steps towards ensuring a brighter and more secure future for their boy child in India.

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