Investing in the future of a girl child is one of the most important financial decisions a parent or guardian can make. In India, where education and empowerment of women are gaining importance, there are several investment plans designed to secure the financial well-being of the girl child. These investment options not only help parents accumulate wealth over time but also ensure that the girl child has a strong financial foundation to pursue her dreams and aspirations. In order to fulfill them, investing in best investment option is important.
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Create wealth for child’s aspirations
Tax Free maturity amount+
12+ plans available
Nothing Is More Important Than Securing Your Child's Future
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Read on to know more about the best investment options for the girl child in India, and their features and benefits:
The best investment options available for the girl child in India encompass a range of financial productsthat offer long-term growth potential, tax benefits, and flexibility. These investment options help parents or guardians build a substantial corpus for the girl child's future needs, such as education, marriage, or entrepreneurial endeavors.
11 Best Investment Scheme for Girl Child are:
Sukanya Samriddhi Yojana Scheme
Unit-Linked Insurance Plan (ULIP)
Post-Office Term Deposit (POTD)
National Savings Certificate (NSC)
CBSE Udaan Scheme
National Scheme of Incentive for the Girls of Secondary Education
Balika Samridhi Yojana
Post-Office Recurring Deposit
Fixed deposit (FD)
Public Provident Fund (PPF)
Children Gift Mutual Fund
Let's discuss these in more details:
Sukanya Samriddhi Yojana is a government-backed savings scheme launched as a part of the "Beti Bachao, Beti Padhao" campaign to promote the welfare of the girl child in India.
The scheme is open for the parents or legal guardians of a girl child below the age of 10 years.
A Sukanya Samriddhi Account can be opened in designated post offices or authorized banks by submitting the required documents such as birth certificate of the girl child, identity proof, and address proof of the parents or guardians.
The minimum deposit amount for opening the account is Rs. 250, and the maximum annual deposit limit is Rs. 1.5 lakh. Deposits can be made in multiples of Rs. 100.
The account has a tenure of 21 years from the date of opening or until the girl child's marriage, whichever is earlier.
Currently the scheme offers an interest rate of 8% which is compounded annually.
Following are the benefits of the scheme:
SSY offers a higher rate of interest compared to most other small savings schemes.
Withdrawal will be permitted for the purpose of the girl child’s further education and to cover the educational expenses.
The SSY account can be easily transferred from one authorized bank or post office to another.
Contributions made towards the Sukanya Samriddhi Yojana are eligible for tax deductions under Section 80C of the Income Tax Act, up to a maximum of Rs. 1.5 lakh per financial year.
The interest earned and the maturity amount are tax-free.
A Unit Linked Insurance Plan (ULIP) is a financial product that offers the dual benefits of insurance and investment. It offers individuals the opportunity to secure their life and simultaneously invest in a range of investment options. ULIPs are designed to meet long-term financial goals while providing life insurance coverage.
ULIPs provide life insurance coverage, ensuring financial protection for the policyholder's family in case of untimely demise during the policy term.
Eligibility criteria for ULIPs include individuals aged between 18 and 75 years.
ULIPs offer a variety of investment options to suit different risk appetites and financial goals. These options include equity funds, debt funds, balanced funds.
ULIPs have a lock-in period of 5 years, after which they can make partial withdrawals or surrender the policy. This lock-in period promotes long-term investment discipline.
Policyholders are eligibile to make partial withdrawal after the completion of the lock-in period.
ULIPs serve a dual purpose of providing life insurance coverage along with investment opportunities.
ULIPs provide flexibility in investment options. Policyholders can choose from various funds such as equity funds, debt funds, or balanced funds based on their risk appetite and financial goals.
ULIPs facilitate long-term wealth accumulation by investing in a diversified portfolio of funds. You can calculate the returns on your investments using the ULIP calculator. On the basis of the premium amount and tenure of the policy, the ULIP calculator calculates the returns offered by a specific ULIP plan.
The accumulated corpus can be used to meet the financial needs of the girl child.
ULIPs offer tax benefits on both premiums paid and maturity proceeds. The premiums paid towards a ULIP are eligible for tax deductions under Section 80C of the Income Tax Act, subject to certain limits. Additionally, the maturity proceeds and death benefits received from a ULIP are generally tax-exempt under Section 10(10D) of the Income Tax Act.
Post Office Term Deposit (POTD) is a popular investment scheme offered by the Indian Postal Service. It is a fixed deposit scheme that allows individuals to invest their money for a fixed period of time at attractive interest rates. The scheme is backed by the Government of India, making it a safe and reliable investment option.
Here are some key features of the Post Office Term Deposit in India:
Investors can choose from a variety of investment periods, ranging from 1 year to 5 years.
POTD accounts can be either solely operated or jointly held. This means investors have the flexibility to choose how they want to operate their accounts based on their individual preferences and requirements.
The minimum deposit amount for a POTD is INR 1000/-, and subsequent deposits must be made in multiples of INR 100.
No withdrawal is allowed before the expiry of six months from the date of deposit.
A POTD account can be pledged or transferred as security. To do so, investors need to submit the prescribed application form at the concerned Post Office, along with an acceptance letter from the pledgee.
The central government has recently authorized all public sector banks, as well as select private banks such as ICICI Bank, Axis Bank, and HDFC Bank, to allow investors to open POTD accounts.
Guaranteed return on investment.
Tax deduction eligibility under Section 80C for 5 Year Time Deposits.
Minors aged 10 and above can operate the account independently.
Nomination facility available.
Flexible investment options starting from Rs. 200 with no maximum limit.
Easy transfer of accounts between post offices.
Premature withdrawal of deposits allowed.
Safer investment compared to FDs, backed by sovereign guarantee.
No cap on the maximum number of accounts that can be opened in any post office.
National Savings Certificate (NSC) is a popular investment scheme in India that is backed by the Government of India. It is designed to encourage small and medium-income investors to save their money and earn fixed returns over a specific period. NSC is a safe and secure investment option and can be opened at any post office.
Features and Benefits of National Savings Certificate (NSC) in India:
NSC offers an annual fixed interest rate, revised quarterly by the government, ensuring a regular income for investors.
The principal invested in NSC qualifies for tax savings under Section 80C of the Income Tax Act, up to Rs. 1.5 lakhs annually.
You can start with as little as Rs. 100 as an initial investment, with no maximum limit.
NSC can be easily purchased from any post office by submitting the required KYC documents.
The certificate can be transferred between post offices or individuals without affecting interest accrual or maturity.
NSC certificates are accepted as collateral or security for secured loans in banks and NBFCs.
The interest earned on NSC is compounded annually and reinvested by default, with the payout received only at maturity.
Investors can nominate a family member, even a minor, to inherit the NSC in case of an unfortunate event of the investor's demise.
There is no TDS on NSC payouts, but applicable taxes should be paid by the subscriber while filing income tax returns or paying advance tax.
The investor receives the entire corpus value on maturity.
Early exit from the scheme is generally not allowed, except in the event of the investor's death, a court order, or forfeiture by a pledgee who is a Gazetted Government Officer.
The CBSE Udaan Scheme is an initiative introduced by the Central Board of Secondary Education (CBSE) in India. It aims to empower and provide academic support to girls from economically disadvantaged backgrounds, enabling them to prepare for entrance examinations to prestigious colleges across the country. The word "Udaan" means "flight" in Hindi, symbolizing the program's goal of helping these girls soar to new heights in their educational pursuits.
The CBSE Udaan Scheme in India offers the following features and benefits:
Free assistance to selected female students for Engineering entrance exams.
Online portal with study material, tutorial videos, and diverse resources.
Virtual classes conducted at sixty centers in major cities.
Provision of tablets or monetary support for eligible candidates.
Orientation sessions to help students use technology effectively.
Specifically designed assignments for constructive feedback.
Remedial steps to rectify learning difficulties.
Peer learning and mentoring opportunities.
Motivational sessions for students and parents.
Student helpline services for doubt clarification.
Student learning and support technology for parent tracking.
Continuous evaluation and feedback to parents.
Assistance in the application process for engineering colleges.
Financial aid for successful students in centrally funded institutions.
The National Scheme of Incentive for the Girls of Secondary Education in India is an important initiative aimed at promoting female education and empowering young girls across the country. Recognizing the crucial role education plays in the overall development of individuals and society, the Indian government has implemented this scheme to ensure that girls have equal access to education and to address the gender disparity prevalent in secondary education.
The National Scheme of Incentive for the Girls of Secondary Education (NSIGSE) has the following features:
Reduce the rate of female school dropouts.
Students enrolled under the scheme are retained until their 12th standard or 18 years of age.
Female students who pass class 8 from Kasturba Gandhi Balika Vidyalaya (KGBV) can avail the scholarships, regardless of their tribe or caste.
1% of the incentive amount is allocated for administration, evaluation, and monitoring of the students each year.
There are no income restrictions for availing the benefits of the scheme. ST/SC female students from KGBVs, government, government-aided, or private schools, who are generally financially disadvantaged, can apply.
The Ministry of Home Affairs is responsible for issuing the NSIGSE scholarships.
The scholarship offered is a one-time national-level incentive.
Applications are accepted from September to November. Regularly checking the official website will provide updated information on the exact start and end dates for applications.
Here are the key benefits:
Financial support: Beneficiary female students receive a fixed sum of INR 3000 upon successfully enrolling in class 9.
The scheme creates an account in the names of the girls, allowing them to save the incentive amount.
Girls can withdraw the incentive amount, along with the accrued interest, once they turn 18 years old and have passed their class 10 board examinations. This provides them with the freedom to utilize the funds for various purposes, such as higher education or personal development.
The Balika Samridhi Yojana was introduced in 1997 and was implemented by the Ministry of Women and Child Development. Its primary objectives are to promote the welfare of the girl child, prevent gender-based discrimination, and ensure her education, health, and overall development.
The Balika Samridhi Yojana in India has several objectives, these include:
Shifting Mindsets: The scheme brings about a positive change in the mindset of families, communities, and society by promoting equal treatment and value for the girl child and mother.
Education Support: The scheme safeguards and enhances girls' enrollment and retention in schools by providing financial assistance for educational expenses like fees, books, and uniforms, ensuring that they have access to quality education.
Financial Security: Balika Samridhi Yojana helps raise girl children until they reach the legal marriageable age, offering financial assistance and support to families, ensuring their well-being and security.
Economic Empowerment: The scheme motivates girl children to pursue income-generating opportunities, encouraging them to become financially independent and self-reliant for their overall welfare.
Post-Office Recurring Deposit (RD) is a popular investment scheme offered by the Indian Postal Service. It is a savings scheme that allows individuals to deposit a fixed amount of money every month for a predetermined period, earning a fixed rate of interest on their deposits. This scheme is designed to encourage regular savings and provides a reliable and safe investment option for individuals in India and can help in saving for the financial needs of a girl child.
The Post Office RD offers an attractive interest rate of 6.2% per annum, compounded quarterly.
The tenure for a Post Office RD is fixed at 5 years.
The minimum monthly deposit required to open an RD account is Rs. 100.
If a deposit is missed, a penalty of Rs. 1 will be charged for 100 rupee denomination account
The scheme provides a rebate for advance deposits of at least six installments. For a denomination of Rs. 100, a rebate of Rs. 10 is given for a 6-month deposit and Rs. 40 for a 12-month deposit.
There is no upper limit on the deposit amount, as long as it is in multiples of 10.
Post Office RD accounts can be easily transferred from one post office to another.
A joint account can be opened by two individuals, allowing them to save together.
A fixed deposit is a financial product where an individual deposits a sum of money with a bank or financial institution for a fixed period of time, ranging from a few months to several years. The deposited amount earns a fixed interest rate throughout the duration of the deposit. Upon maturity, the principal amount along with the interest earned is returned to the depositor.
FDs have investment tenures ranging from 7 days to 10 years, varying across banks.
The invested amount earns compounded returns periodically, such as quarterly, annually, or monthly.
Senior citizens enjoy 0.5% higher returns compared to regular investors.
Premature and partial withdrawals are usually allowed, with penalties.
Upon maturity, the maturity amount can be reinvested for continued growth.
Benefits of Fixed Deposits in India:
Fixed deposits guarantee a stated rate of return, providing certainty to investors.
Small deposit holders enjoy tax benefits as banks are not required to deduct tax until interest crosses the specified threshold.
Depositors have the flexibility to choose the tenure of their fixed deposits, including the option to extend or redeem them.
Fixed deposits can be easily liquidated, with online options available through net banking and forms available at bank branches.
In times of financial emergencies, fixed deposits can be used as collateral for loans, offering a dependable source of funds.
**These benefits may vary depending on the specific terms and conditions of each bank or financial institution.
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.
Investment limit: Minimum Rs 500, maximum Rs 1.5 lakh per year.
Tenure: Minimum 15 years, extendable in blocks of 5 years.
Opening balance: Account can be opened with just Rs 100.
Deposit frequency: At least one deposit per year for 15 years.
Mode of deposit: Cash, cheque, demand draft (DD), or online transfer.
Joint accounts: Only single individual accounts allowed.
Nomination: Option to designate a nominee.
Low Risk Investment: PPF offers guaranteed returns and is backed by the Indian government, making it a low-risk investment option.
Loan Facility: After maintaining the account for 3 years, you can take a loan against your PPF account, up to 25% of the balance, even during the 15-year lock-in period.
Account Closure Option: If you're unable to continue contributing to the PPF account, you have the option to close it.
Protection from Debt Attachments: Any debts you have cannot be attached to a court order against your PPF account.
Tax benefit: Interest and maturity amount are tax-free under section 80C of the Income Tax Act, 1961.
Partial withdrawal: Allowed from the seventh financial year onwards.
A Children Gift Mutual Fund is a financial product designed specifically for the purpose of saving and investing for a child's future. It offers a convenient and disciplined approach to building wealth over the long term, with the intention of providing financial security and support for the child as they grow older.
The concept behind a Children Gift Mutual Fund is to start investing early in a child's life, taking advantage of the power of compounding over time.
There are several key features and benefits of a Children Gift Mutual Fund:
The fund allows for long-term savings, giving the investments more time to grow and potentially generate higher returns.
The fund is managed by experienced investment professionals who make investment decisions on behalf of the investors.
The fund invests in a wide range of assets, spreading the risk across different sectors and markets. This diversification helps reduce the impact of any individual investment's performance on the overall fund.
Parents or guardians can contribute regularly to the fund, with the option to increase or decrease the investment amount based on their financial situation.
Children Gift Mutual Funds are often used for education planning. The accumulated funds can be utilized to cover the child's educational expenses, such as tuition fees, books, or accommodation when they reach college age.
People also read: Child Education Plan
All plans and policies come with benefits and attractive features. The main decision is up to you and your child's needs. It is important to understand all the investment plans carefully before investing your hard-earned money in any kind of plan.
*All savings are provided by the insurer as per the IRDAI approved insurance
*Tax benefit is subject to changes in tax laws. Standard T&C Apply
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