For decades, the Indian government has been promoting schemes for girl children to tackle the issue of the gender gap that often leads to female foeticide and infanticide in many parts of the country till date. From banks to post offices, there are specific investment and savings schemes that parents can opt for to secure the future of their baby girls.
These welfare schemes also come with benefits, address essential needs, and safeguard a child’s future. By investing in some of them, parents can ensure that their kid can choose the study programme she wants to pursue in future.
Read More: National Pension System: Now you can change your nominee via e-nomination
Post Office Savings Account
Much like a bank savings account, a post office savings account comes with a 4% interest rate. This is preferable for parents with a girl child below 10. While there is no maximum limit to investment in this, the minimum limit is only ₹500. One has to maintain the minimum balance of ₹50 and can withdraw the amount at any point in time.
Public Provident Fund (PPF)
It is a child-saving scheme for girl children which comes with a guaranteed return. It has a fixed tenure of 15 years with an interest rate of 7.1%. The minimum deposit limit is ₹500. Investors can opt for premature closure of the account after five years in case of a life-threatening condition of a parent, spouse or dependent kids, higher education for the child or dependent kids and change in resident status.
Recurring Deposit (RD)
It is one of the best savings schemes (women empowerment schemes) for girl children where parents can deposit a small amount every month. It is available for five years, and the interest rate is 5.8% per annum. The minimum deposit limit is ₹100, and investors cannot withdraw money before the tenure ends.
Read More: HDFC Bank launches new SMS banking facility: How to use the new feature
Sukanya Samriddhi Yojana
This is one of the most popular schemes for a girl child. Parents with two girls can invest in this scheme until the kids reach the age of 10. With an interest rate of 7.6%, the minimum deposit amount is ₹1,000, and the maximum limit is ₹1.5 lakh. While investors cannot withdraw the amount until their kid turns 18, the scheme provides maturity benefits after the child turns 21.
Kisan Vikas Patra (KVP)
It is one of the post office schemes that come with guaranteed income. The minimum deposit amount under this scheme is ₹1,000, and the lock-in time is 30 days. Since the interest rates are taxable, parents must confirm it before they make any investment.
Post Office Time Deposit Account
This scheme comes with a minimum deposit requirement of ₹1,000. There is an option for investors to do a re-investment and avail of a good return. Depositors can also convert the interest into a five-year recurring deposit scheme. The scheme offers the benefit (financial benefits offered by government schemes) of tax deductions when parents have to file their income tax returns.
National Savings Certificate (NSC)
The National Savings Certificate scheme has an annual interest rate of 6.8%. It has a tenure of five years while the minimum amount of deposit is ₹100. Depositors can claim tax benefits up to ₹1.5 lakh under this scheme.
Post Office Monthly Income Scheme
Its current rate is 6.6% with a lock-in period of five years. Its minimum and maximum cap on deposits are between ₹1,000 and ₹4.5 lakhs. Investors cannot withdraw money before one year period.
