5 Best Policy for Girl Child – Top Saving Schemes and Investment Plans for Girl Child in India, 2022

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5 min read

Updated on Nov 09, 2022

Are you willing to secure the future of your daughter with an investment policy? If yes, here are the Best 5 Investment & Saving Plans for a Girl Child in India 2022.

Securing the life and future of your daughter with the best investment plan for girl child in India is as important as securing the future of your son. In fact, giving the girl child proper education to build a prosperous career is necessary so that she can be financially independent and stand on her own.

So, if you are a parent of a girl child, you must look for the best investment options available in India to secure her future. The best saving plan for girl children should encompass features that help the child in availing greater opportunities in higher education and fulfilling their aspirations.

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In India there are many good investment options offered by banks and post offices that ensures better future for a girl child. But it is important for parents to know about such plans in detail so that they can evaluate them and can gain maximum benefit from them as per their requirement.

1. Sukanya Samriddhi Yojana (SSY)

SSY or Sukanya Samriddhi Yojana is the best investment plan for girl child. This is a saving plan crafted especially for girl children in India. This scheme target parents of girls and support them to financially secure the future of their daughter’s by opening an account in either a commercial bank or a post office. The SSY scheme was initiated by the Indian Government under the campaign named; ‘Beti Bachao Beti Padhao’ and is available at 7.6% current interest rate.

Since the interest rate of SSY keeps changing, it is better to ensure the same while planning to open an SSY account. As per government rule, a single family can benefit by opening maximum two accounts for 2 girls of the family. The maturity of SSY account takes place in 21 years.

Documents Required to Open a Sukanya Samriddhi Yojana (SSY) Account

  • Photo of applicant
  • Aadhaar number of parents/guardian
  • PAN of parents/guardian
  • Account holder’s (girl child) birth certificate
  • KYC documents (ID proof/ Address proof)

Benefits of Sukanya Samriddhi Yojana (SSY)

  • SSY account allow highest return on tax deduction, and it comes with the EEE status.
  • The contributions per year in this account (Rs. 1.5 lakh/year) is qualified for tax deduction under Section 80C of Income Tax Act.
  • The sum received after the account matures is non-taxable.
  • Thus it presents incredible Tax Benefits which can’t be ignored.
  • It requires a small amount (Rs. 250) to open a SSY account.
  • The scheme help parents to save for their daughter’s educational costs.
  • You can deposit for 15 years, while the account matures in 21 years and allow you to earn continued interest on the amount you deposited.
  • The account allow premature withdrawal in case of special needs of your daughter.

2. Children Gift Mutual Fund 

Another best scheme for girl child in India suitable for your daughter is the Children Gift Mutual Fund. This scheme offers a blend of debt limits and equity. This scheme doesn’t allow premature withdrawal and is available with a restriction period of 18 years. However, the lock-in period helps in creating high returns on the plan.

Eligibility Criteria for Children Gift Mutual Fund

This investment plan can be created in the name of your minor daughter/girl child by parents/guardians on her behalf.

Benefits of Children Gift Mutual Fund

  • Investing in this plan will inculcate long-term financial security.
  • It allows parents to plan better for their daughter’s future life events.
  • It is easy and uncomplicated to monitor funds under this policy.
  • The plan incurs no tax until redemption.
  • Tax applied at maturity is minimal.

3. National Savings Certificate (NSC)

This is a low-risk scheme initiated by the government and is available with the post-offices across India. This investment schemes for girl child is loaded with features and suits aptly for girl child in India. It facilitates a fixed income and definite returns to generate best revenues. Similar to SSY, this plan is currently available at 6.8% rate of interest per annum.

Features of National Savings Certificate (NSC)

  • Minimum investment – Rs.1000
  • Maximum investment – no max. limit
  • Interest Rate – 6.8%
  • Lock in tenure – 5 years
  • Tax Benefits – Up to Rs.1.5 lakh (as per Section 80C of Income Tax)

Benefits of National Savings Certificate (NSC)

  • The plan offers fixed return on investment higher as compared to FDs.
  • Offer Tax benefits under section 80C.
  • Available at an initial investment of Rs 1,000, which is very less.
  • The Plan is available with a maturity period of 5 years.
  • Easy to purchase from a post office.

4. Post-Office Term Deposit (POTD)

This is another good investment scheme for girl child which is similar to a bank FDs or fixed deposit. Here, you save money for a particular period of time to earn definite returns. The maturity amount under this plan includes the amount deposited along with interest earned on it.

Features of Post-Office Term Deposit (POTD)

  • Lock-in period – 5 years
  • Transfer – Parents can move the account all across India.
  • ROI – the rate of interest keeps changing, so it is  better to check at the time of account opening.
  • Minimum deposit – Rs.1000.
  • Maximum Deposit – no max. limit.

Benefits of Post-Office Term Deposit (POTD)

  • These are low risk schemes that ensure guaranteed returns.
  • They are also small saving and low maintenance schemes.
  • Offer income tax benefits under section 80C.
  • Offers Lucrative returns.
  • Available at low minimum deposits

5. Unit Linked Insurance Plan (ULIP) 

The Unit Link Insurance Plan or ULIP as they are normally called is another recommended investment option and the best saving plan for girl child in the country that you can adopt for your daughter. This plan presents high returns on investment and is available in the form of a combination plan – life insurance + investment options – to offer multiple benefits.

Benefits of Unit Linked Insurance Plan (ULIP)

  • In the event of the death of parent/guardian, the insurer makes payment of the upcoming premiums.
  • Also, in the above scenario, the insurer facilitates the nominee with a month-based income to support her education.
  • The girl child receives a total amount as payout in the event of sudden death of the guardian to meet regular expenses.

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To Conclude

There are numerous insurance companies, banks and post offices offering various plans to secure your girl child’s future. These plans help parents generate enough income to use for the higher education and bright future of your daughter. However, they should evaluate the schemes well to obtain the best plan for girl child suiting their needs and the higher education aspirations of their daughter.

Also Read: Post Office Saving Schemes for Boy Child in India

Found this post informational? Browse PayBima Blogs to read interesting posts related to Health Insurance, Car Insurance, Bike Insurance, Term Life Insurance and Investment section. You can visit PayBima to Buy Insurance Online.

FAQs on Best Policy and Investment Plans 2022 for Girl Child in India

Which investment is best for a girl child?

One of the best investment plans for a girl child at present is SSY or Sukanya Samriddhi Yojana which is available at a rate of interest of 7.6%. Other top investments best suitable for girl child include:

Children Gift Mutual Fund
National Saving Certificate (NSC)
Post-Office Term Deposit (POTD)
Unit Linked Insurance Plan (ULIP)

Which is the best child plan to invest in India?

It actually depends on various things like your budget, economical background and your preferences in terms of investments. However, when it comes to investing for child plans, below are the options that one can seek to secure the future of their child:

National Saving Certificates (NSC)
Post-Office Term Deposit (POTD)
Unit Linked Insurance Plan (ULIP)
Sukanya Samriddhi Yojana (SSY)
Money Back Insurance Plans

Which plan is best for the child's future?

For a girl child in India, Sukanya Samriddhi Yojana is one of the best plans to secure her future. This plan is available with a good rate of interest and allows several benefits. Besides, there are several other plans that cater to children, such as, child insurance plans, Endowment Plans, Equity Fund, Money Back plans, ULIPs, Children Gift Mutual Funds, etc.

How do I start investing for my kids?

It is better to start investing for the child from his/her birth onwards. Try to open a good investment account for your child, which could cater to his/her higher education goals. Also, you can buy term life insurances to secure the future of the child in case of any untoward situation that takes place with you. There are many good investment plans to start with depending on your budget and preference. You can start with one of the below mentioned plans:

National Saving Certificates (NSC)
Post-Office Term Deposit (POTD)
Unit Linked Insurance Plan (ULIP)
Sukanya Samriddhi Yojana (SSY)
Money Back Insurance Plans

Also, look for plans that offer tax deductions so that you can save some tax and the maturity amount is also tax free. This will help the child with a lump sum amount at maturity to cater to his/her career and life needs.

Mar 05, 2022
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