Best Saving Schemes: These 5 best schemes will secure the future of children
Best Saving Schemes: Investing in your child’s name would be the ideal choice if you also intend to offer them a special present on Children’s Day. Children will benefit from this investment by having a secure future and becoming financially stable in the future. The government also runs a number of programs for kids that offer financial stability and high returns. In addition, there are a lot of other alternatives.
Sukanya Samriddhi Yojana (SSY)
A fantastic and well-liked program administered by the central government is Sukanya Samriddhi Yojna, or SSY. It can arrange funds for a daughter’s education and marriage because it is specifically designed for girls. With just Rs 250, an account may be created under this 2015-launched service. The government is paying a high interest rate of 8.2 percent to this. Your daughter’s account would have more than Rs 69 lakh when she reaches 21 if you invest Rs 1.5 lakh in SSY annually. Remember that the daughter must be at least 10 years old to create an account under this program.
PPF Account
You can begin investing in a PPF account or public provident fund in the names of your children. The mother, father, or both guardians may invest in their children’s names under this plan. The government itself ensures safe investing in this plan as well, and the profits are likewise quite good. The investor has the option to prolong this account beyond its 15-year maturity. You may deposit up to Rs 1.50 lakh in a single year and begin investing with as little as Rs 500 every year.
An interest rate of 7.1 percent is available if you look at the investment interest rate in this program. Compound interest is used to calculate the return on investment in PPF, which further grows your fund. You may deposit Rs 3000 per month and Rs 36,000 annually if you save Rs 100 every day. Following this, you would receive a total of Rs 9,76,370 after 15 years of maturity. In this case, Rs 5.40 lakh would be invested, and Rs 4,36,370 will be paid in interest.
The NPS Vatsalya Scheme
The federal government launched the NPS Vatsalya Scheme, a pension plan, to safeguard children’s futures. The Pension Fund Regulatory and Development Authority (PFRDA) is in charge of running it. With Rs 1000, you may begin investing in your children’s names. By default, it will switch to NPS after the kid turns 18. A larger sum may be invested for the children’s future since compound interest is earned on the initial investment. NPS Vatslya accounts may be created online at e-NPS and through Points of Presence (POP) found in major banks, India Post, pension funds, etc.
SIP for mutual funds
You can participate in SIP in mutual funds in addition to government programs. SIP has the potential to make you a billionaire and yield enormous profits over time. In the long run, it typically yields a return of 12–16 percent. According to a computation, the child’s fund would reach Rs 99,91,479 after compounding if a SIP of Rs 10,000 per month was opened in the child’s name and continued for 20 years.
