The Post Office Savings Scheme in India offers a wide range of investment options that provide secure and reliable savings opportunities for individuals. Among these schemes, there are specific ones designed to cater to the financial needs of a boy child. These schemes encourage a culture of savings and long-term financial planning for the future of a young boy, enabling his parents or guardians to make prudent financial decisions on his behalf.
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This article will discuss the best post office savings scheme for Boy child in India, and will highlight their key features.
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)
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. |
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 |
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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 |
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 |
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 |
|
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. |
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. |
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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