Government Schemes: Parents want that when our children grow up, they should not have any shortage of money for education, career or marriage. But this is possible only when we do systematic planning from today.
Nowadays, there are many types of government savings schemes available in the market which not only keep your money safe but also give good returns. But it is very important to know which scheme is right among these because every scheme has its own terms and benefits.
Sukanya Samriddhi Yojana (SSY)
If you want to invest for your daughter and she is less than 10 years old, then Sukanya Samriddhi Yojana is a great option. This is a government scheme made especially for daughters. Currently, it is getting 8.2% interest, which is much higher than other savings schemes. Every year you can deposit ₹ 250 to ₹ 1.5 lakh in it. The account matures when your daughter turns 21 or she gets married at the age of 18. It also gives compound interest. Along with this, it also gets tax exemption under section 80C. Overall, if you have a daughter, then this scheme is the smartest way to secure her future.
Public Provident Fund (PPF)
Now let’s talk about PPF i.e. Public Provident Fund. This is a very reliable government scheme, which is available for everyone, be it a son or a daughter. Currently, it is getting 7.1% interest and the best thing is that the interest received on it is completely tax free. In this too, up to ₹ 1.5 lakh can be invested every year and you get tax exemption under section 80C. The lock-in period of PPF is 15 years, which means it can become a great long term plan for the higher education of children.
National Savings Certificate (NSC)
If you are looking for a short term and safe option, then NSC i.e. National Savings Certificate can also be a better option. Its maturity period is 5 years and the interest received in it is fixed from time to time. At present, the interest rate is also quite competitive. The interest received in this is again added to the scheme, that is, the money keeps growing. NSC also gets tax exemption under section 80C. This is a great option for those parents who want to save money without risk in a short time.
Fixed Deposit (FD)
Now let’s talk about the most traditional but popular option, Fixed Deposit i.e. FD. In FD, you deposit money for a fixed period and get a fixed interest on it. There is almost no risk in this, and the money is completely safe. Yes, the return on FD can be a little less and the interest received on it is taxable. But if you want a simple and safe way in which there is no fear of losing money, then FD can prove to be a good option.
Which scheme is right for you?
If you have a daughter and you want to do long term planning for her marriage or education, then Sukanya Yojana is the best. Whether it
is a son or a daughter, if you want tax free, long term savings then choose PPF.
If you want safe returns in 5 years, then consider NSC.
If you want to feel safe by depositing money in the bank without any risk, then FD is for you.
