Children Savings fund

Some say it is not easy to plan for our children secured future. No that's not true. Today in digital era, There are different options available for child only thing is we need to choose the right investment plan at right time.

Our job here to highlight and bring you a different investment option available in Indian Market. You can choose based on your need!

Government investment option for kids 2022:

The following are the best investment option available in India for child's future.

• Public Provident Fund

• Sukanya Samriddhi Yosana

Public Provident Fund(PPF):

Its a best plan for children parents plan for higher studies for next 15 years. After 7 year withdrawal is available. PPF account can be opened in any banks or post office. This can be opened with name of your child as well, as there is no age limit. Only restriction is the account should be handled by parents until they turn 18.

Here are some points that you should aware about PPF (Current Interest Rate is 7.1%)-

• Minimum deposit ₹ 500/- & Maximum deposit ₹ 1,50,000/- in a Financial year.

• Loan facility is available from 3rd financial year upto 6th financial year.

• Withdrawal is permissible every year from 7th financial year.

• Account matures on completion of fifteen complete financial years from the end of the year in which the account was opened.

• After maturity, account can be extended for any number for a block of 5 years with further deposits.

• Account can be retained indefinitely without further deposit after maturity with the prevailing rate of interest.

• The amount in the PPF account is not subject to attachment under any order or decree of a court of law.

• Deposit qualifies for deduction under Sec.80-C of I.T.Act.

• Interest earned in the account is free from Income Tax under Section -10 of I.T.Act.

Sukanya Samriddhi Yosana(SSY):

This is best scheme and only applicable for girl child. Like PPF the account can be opened in any bank or post office.

Here are some points that you should aware about SSY(Current Interest Rate is 7.6%)-

• Minimum deposit ₹ 250/- Maximum deposit ₹ 1.5 Lakh in a financial year.

• Account can be opened in the name of a girl child till she attains the age of 10 years.

• Only one account can be opened in the name of a girl child.

• Account can be opened in Post offices and in authorised banks.

• Withdrawal shall be allowed for the purpose of higher education of the Account holder to meet education expenses.

• The account can be prematurely closed in case of marriage of girl child after her attaining the age of 18 years.

• The account can be transferred anywhere in India from one Post office/Bank to another.

• The account shall mature on completion of a period of 21 years from the date of opening of account.

• Deposit qualifies for deduction under Sec.80-C of I.T.Act.

• Interest earned in the account is free from Income Tax under Section -10 of I.T.Act.

More coming soon.. to be continued..