With the beginning of the new year, we also make changes in our financial planning. According to the need, make some changes or include some new products. While doing financial planning, concrete planning should also be done about the future of the children. At the time of your children’s education, marriage, you do not face any financial problems, for this it is necessary that planning should be done from the beginning. In the year 2022, if you are planning to start investing keeping in mind the future of children, then there are many good options. This includes Bank FD, PPF, SSY, Mutual Fund.
Mutual funds can also be a better option, if a little aggressive thought is given while doing financial planning keeping children in mind. You can also buy mutual funds for minor children. It can be used for their further studies or career. One can start investing in mutual fund schemes for SIP. You can start SIP with just Rs 100. Its long term gives better returns. You can invest in mutual funds in the name of children with the help of your financial advisor.
Public Provident Fund (PPF)
Public Provident Fund (PPF) is a better scheme with a longer lock-in period. When you plan for children’s future, you get a long time. Deposits are also completely safe in this scheme. PPF account can be opened in the name of children only by their mother, father or legal guardian. PPF account can be opened for children below 18 years of age. The current interest rate on PPF is 7.1 percent. PPF account matures in 15 years. An investment of Rs 1.5 lakh can be made in this annually. If you are the parent of 2 children, then you can invest up to Rs 3 lakh by opening separate PPF accounts. After 15 years, you can withdraw the entire amount from the account at once. After that it can be extended for another 5 years. Investment in PPF gets tax exemption up to 1.5 lakh in section 80C of Income Tax Act.
Sukanya Samriddhi Yojana (SSY)
This is a best scheme for the safe and good future of daughters. In Sukanya Samriddhi Yojana (SSY), this account can be opened by the parents or legal guardian of any girl child from zero to 10 years of age. Sukanya Samriddhi Yojana account can be opened in any official government bank and post office branch. Currently, the interest rate on this is 7.6 percent. Account can be opened in Sukanya Samriddhi Yojana for just Rs 250.
Under this scheme, a minimum of Rs 250 and a maximum of Rs 1.50 lakh can be deposited annually. Tax exemption can be availed under section 80C of Income Tax Act on investment in SSY. Investment has to be made in SSY till the completion of 15 years from the day of account opening. But this account matures on completion of 21 years. In this, withdrawal can be done after the daughter turns 18 or after passing 10th.
Fixed Deposits (FDs)
Bank FDs are a traditional and popular investment option in our country. One reason for this is that you can do FD in a period of 7 days to 10 years. Also, it can be easily withdrawn in case of emergency. The parent or legal guardian of the child can start investing in these with a deposit of Rs 100 and Rs 500 in multiple banks. SBI is currently offering 2.90 percent to 5.40 percent interest on FDs (7 days to 10 years).
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