A baby girl just fills your life with innumerable joys and laughter. In turn, securing her future financially not just for her education but also for her wedding is the best gift you can give to her
One day, while browsing my Quora account, I came across this question, What is the best child plan in India I can get for my 4-year-old daughter?
I was so intrigued by this question because trust me up till then I had also not invested in any child plans for my daughter. Then after an exhaustive search, I came across some child plans. Out of these, some were specifically tailor-made for a girl child giving them educational, higher education and marriage benefits.
Here are a few child plans which you can opt for your girl child:
Sukanya Samriddhi Account: This is a Government Scheme for the girl child which was introduced by PM Narendra Modi under the ‘Beti Bachao, Beti Padhao’ campaign. The account can be opened by the child’s parents till the girl is 10 years of age. This account can be opened in post offices and also in some nationalized banks like SBI, Punjab National Bank, Canara Bank, Corporation Bank, etc. The minimum amount required to open the account is Rs 1000/- and then the contributions can be made in multiples of 100. The total amount should not exceed more than 1.5 lakh per soon as the girl reaches the age of 10 she can start operating the account. The scheme matures when the girl child turns 21 from the date of opening the account.
Some important pointers of the scheme are:
- This account can be opened under the girl’s name until she attains age 10 years.
- One account is allowed for one girl child
- The account can be easily opened through the post office and nationalized banks
- When the account is opened the minimum amount required is Rs 1000/- then multiples of Rs 100/- can be deposited
- Maximum deposit for a year is Rs 1.5 lakh
- One has to pay for 14 years under this scheme. Eg when you open the account of your daughter at age X, then you must pay till the child is X+14 years
- The account matures 21 years from the date of opening
- This account is transferable anywhere in India from Post Office or nationalized banks.
LIC New Children’s Money Back Plan: For this, the minimum age of the child should be 0–12 years. This ensures the child’s life and the maximum premium paying term is up to 25 years. The minimum sum which is assured in this is Rs 1 lakh and there is no limit for a maximum sum assured.
Other than Child plans, other long-term investment options are:
- Term + Mutual Funds: This investment is smart and the combination provides a dual benefit of security along with investment.
- Gold EFTs: These are mutual fund units which are equivalent to 1 gram of gold and are usually termed as paper gold. These can be easily sold and bought for mutual funds with an active Demat account.
- Public Provident Fund: This is the most popular method of long-term investments and tax saving methods. The interest rate is market linked and one can save up to 1 lakh a year.
- EFTs & Stocks: Stocks are a little risky and give the highest return over a long period of time. EFTs are also like stocks but are more transparent and cost-effective investments.
Please Note: I am not a financial consultant. There may be many other child plans which are good which I am not aware of. I tried to answer this question best with the knowledge I have.
Also, I successfully managed to opt for Sukanya Samridhi Yojana for my daughter 🙂