10 Best Saving Scheme for Girl Child – Overview of Top Investment Plans for Girl Child in India

Are you willing to secure the future of your daughter with an investment policy? If yes, here are the 10 best scheme for girl child in 2023 India, you can choose as an investment or saving plan for your girl child.

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 girl child investment plans or other 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.

In India, there are many good girl child investment plans and options offered by banks and post offices that ensure the best saving scheme for girl child. But it is important for parents to know about such plans in detail so that they can evaluate them and can choose the best investment policy for girl child to gain maximum benefit from them as per their requirement.

In this post, we will read about some of these best saving scheme for girl child in detail. But before that let’s discuss the benefits of these investment plans in brief.

Benefits of Investment Plans and Policy for a Girl Child

• Child investment plans allow higher interest rates as compared to many other schemes

• These plans help is saving tax as they allow tax exemption
• These plans come with easy terms and conditions to support a child’s future

Here is a list of the 10 Best Policy for Girl Child in 2023 Offering High Returns:

1. Sukanya Samriddhi Yojana (SSY)
2. Children Gift Mutual Fund
3. Post-Office Term Deposit (POTD)
4. Unit Linked Insurance Plan (ULIP)
5. National Savings Certificate (NSC)
6. CBSE Udaan Scheme
7. National Scheme of Incentive for the Girls of Secondary Education
8. Balika Samridhi Yojana
9. Post-Office Recurring Deposit
10. Fixed deposit (FD)

1. Sukanya Samriddhi Yojana (SSY)

SSY or Sukanya Samriddhi Yojana is the best investment policy for the girl child. This is a savings plan crafted especially for girl children in India. This scheme targets 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.

Sukanya Samriddhi Yojana (SSY) plan eligibility, benefits, documents required, and other details:

Eligibility	Documents Required	Benefits
Girl child should be 10 years or below   The SSY account can be opened for a girl child only by her natural or legal guardian	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)	SSY accounts allow the 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   It presents incredible Tax Benefits   It requires a small amount (Rs. 250) to open a SSY account   The scheme help parents to save for their daughter’s higher education 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 allows 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.

Children Gift Mutual Fund plan eligibility, benefits, and other details:

Eligibility	Benefits
The account can be opened in the name of a minor daughter/girl child by her parents/guardians Parents are required to submit documents to prove their relationship with the girl.	Investing in this plan will help accumulate 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 scheme 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.

National Savings Certificate (NSC) plan eligibility, benefits, and other details:

Eligibility	Benefits
Minimum investment – INR 1000 Maximum investment – No Maximum Limit Interest Rate – 6.8% Lock in tenure – 5 years	The plan offers higher fixed return on investment as compared to FDs Tax Benefits – Up to Rs.1.5 lakh (as per Section 80C of Income Tax) 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 childern 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.

Post-Office Term Deposit (POTD) plan eligibility, benefits, and other details:

Eligibility	Benefits
Minimum deposit – INR 1000 Maximum Deposit – No Max. Limit Lock-in period – 5 years Transfer – Parents can move the account all across India ROI – The Rate of Interest keeps changing. Check at the time of account opening	These are low risk schemes that ensure guaranteed returns They are also small savings 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 is one of the best policies for a 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. You can also use the ULIP calculator to check the premium amount and returns.

Unit Linked Insurance Plan (ULIP) plan eligibility, benefits, and other details:

Eligibility	Benefits
Minimum Age – 18 years Maximum Age – 60 years maximum Maturity Age – 75 years	In the event of the death of parent/guardian, the insurer allows premium waiver option regarding the payment of the future premiums Also, in the above case. 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.

 

6. CBSE Udaan Scheme

The Central Board of Secondary Education (CBSE) has collaborated with the Human Resource Development (HRD) Ministry, Government of India to initiate and manage the CBSE Udaan scheme for girls. The plan aims to support girls in getting enrolled in prominent colleges of engineering and technical studies across India.

CBSE Udaan Scheme eligibility, benefits, and other details:

Eligibility	Benefits
Applicants who have secured 70% average marks in class 10 can enroll for the plan The applicant must score 80% minimum marks in Science and Mathematics The applicant must score a minimum of 8 and 9 GPA in Maths and Science	The plan offers online resources and free course material for girls in their 11th and 12th grades Weekend virtual courses for girls in their 11th and 12th grades Career opportunities for deserving female students Study assistance and clarification facilities via a toll-free number Consistent monitoring and tracking of students’ progress

7. National Scheme of Incentive for the Girls of Secondary Education

This is another pan-India scheme initiated by the Department of School Education & Literacy, which is a wing of the HRD Ministry, Government of India. The scheme supports girls of deprived classes of India who want to pursue secondary education. Under this scheme, girls of economically low classes receive INR 3000 as a fixed amount that can be used to complete their secondary education. The amount can be withdrawn after the girl completes her 10th grade.

National Scheme of Incentive for the Girls of Secondary Education plan eligibility, benefits, and other details:

Eligibility	Benefits
The applicant must be unmarried The girl child must be below 16 years of age The candidate should be 8th pass and should have enrolled in the 9th grade Must be studying in a school aided by Government	It is a centrally Sponsored Scheme The girl child can withdraw the amount with interest upon reaching 18 year

8. Balika Samridhi Yojana

This is a scholarship scheme that allows financial support to girls who are economically deprived and to their families. The scheme aims at raising the social status of girls. Besides, the scheme also works at increasing the age of marriage of girls and to increase their enrolment in school. This scheme is available for people of both rural and urban areas. Under this scheme, mothers of girl child are given a cash reward at the time of birth of the child. Further, the girl child is given an annual scholarship of an amount ranging between INR 300 to INR 1000 when she reaches school. Application form for this scheme can be downloaded from the website of Women & Child Development.

Balika Samridhi Yojana plan eligibility, benefits, and other details:

Eligibility	Benefits
The girl child should be from a below poverty line (BPL) family   The girl child should be born on or after August 15, 1997	Annual scholarship for girlsA sum is offered at the time of birth of girl child

9. Post-Office Recurring Deposit

A post-office recurring deposit is another good investment policy for a girl child. The plan comes with a tenure of 5 years, which can be extended further by parents to generate high returns. This is a zero risk investment plan that can support the parents of girls to secure their future.

Post-Office Recurring Deposit plan eligibility, benefits, and other details:

Eligibility	Benefits
Tenure of a post office RD is 5 years Applicant should be an Indian National above the age of 18 years	Interest rate provided per annum is compounded quarterly Investors must deposit a fixed amount at regular intervals

10. Fixed deposit (FD)

Fixed deposit is another option for parents to save enough for their daughters. This plan helps parents to enhance their income. However, the interest rates of FDs are very low. But, it is a risk-free option for girl child investment. However, once you open the account, it is not possible to withdraw money early within in the lock-in period.

Fixed deposit (FD) plan eligibility, benefits, and other details:

Eligibility	Benefits
Any applicant less than 60 years of age can apply.Parents of gild child can apply on behalf of their daughters The applicant must be a citizen of India	Better interest rates than regular savings account The plan allow tax benefits

Benefits of Girl Child Savings Schemes in India

Higher rate of Interest	As compared to the interest rates offered by other national and state banks, FDs and deposits in SSY are higher, which results in more money being saved
Tax Benefits	Many schemes offered by the government exclude Income Tax benefits. However, with SSY, you can have savings in the form of tax-exemptions. This comes as a huge benefit in the long run
Simple Terms and Conditions	The terms and conditions of SSY are plainly stated, which hardly leaves any speculation. Scheme doesn’t allow any early withdrawals due to the lock-in period. This ensures that the amount saved is used for the girl’s higher education or marriage

Child Plan vs Sukanya Samriddhi Yojana vs PPF

Feature	Child Education Plan	Sukanya Samriddhi Yojana	Public Provident Fund
Entry Age	Up to 18 years	Up to 10 years	No age limit
Tenure	5 years	21 years	15 years
Rate of Interest	12 – 19%	8%	7.1%
Minimum amount required to open an account	Depends on the plan	INR 250	INR 100
maximum amount invested per year	No limit	1.5 lakh	1.5 lakh
can be awaited by	Both girl and boy child	Girl child only	Both girl and boy child
premature withdrawal conditions	Can be withdrawn after 5 years	Can be withdrawn under sensitive conditions	Can be withdrawn in case of any critical illness or for education purposes
Penalty on premature withdrawal	No penalty if withdrawn after 5 years	Rate of interest reduced to normal post office saving schemes	1% Reduction in ROI
Paperwork at withdrawal	Low	High	Low
Availability of lump sum payment to child in case of parents' death	Available	Not available	Not available
Monthly payment for child's education in case of parents' death	Available	Not available	Not available
Nomination facility	Not available (parents receive the amount)	Not available (parents receive the amount)	Available
Premium waiver facility	Available	Not available	Not available
Risk factor	Low-risk investment	Low-risk investment	Low-risk investment