Savings Schemes for Children: Growing market infiltration is a major cause to worry for the middle class and financially poor families. They have to carry household cost along with their child’s education and others expenses. To secure your child’s future, their are many savings schemes which can help to grow a finnally secure future. These schemes are not related to market risks.
NPS
Under the National Pension Scheme (NPS Vatsalya), arrangements have been made to financially empower the future of all the children of the country. This is a scheme that is operated by the Pension Fund Regulatory and Development Authority (PFRDA). Under this, parents can arrange financial independence for their children. In this, parents can start from Rs 1000 for their children and there is no upper limit. This scheme promises returns of market-linked long-term investments.
FD
Parents can invest in special FDs for children by becoming guardians for their children and some banks also give very high returns on them. PNB Balika Shiksha Scheme, PNB Uttam Non-Calable Term Deposit Scheme, Yes Bank Fixed Deposit for Child and SBI Child FD are some of the best options you can find for children.
RD
Like FDs, there are many banks that offer special recurring deposit plans for children. With less investment in it, you get the benefit of higher returns. In this RD account, a fixed amount can be made every month for a fixed period like FD. People can also earn fixed interest on their savings.
SSY
Sukanya Samriddhi Yojana is a scheme that is being run by the government and parents can take it for their girls. As the name of this scheme suggests, it is a girl based scheme and is being run for girls. It mainly offers tax benefits on principal, interest and monthly maturity amounts and attractive interest rates. Anyone can open an account for their daughter under Sukanya Samriddhi Yojana at a minimum amount of Rs 250.
PPF
In the long term your children can collect good funds. It mainly has a lock-in period of 15 years for children and money can be withdrawn only when the money withdrawn from the account is being used to benefit the child.