Find your suitable insurance plan
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11 min read
Updated on Dec 18, 2023
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.
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.
| 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. |
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 | Benefits |
|
|
Also Read: Best pension plan in India
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.
| Eligibility | Benefits |
|
|
Also Read: NSC Premature Withdrawal
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.
| Eligibility | Benefits |
|
|
Also Read: Post Office RD Online Payment
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.
| Eligibility | Benefits |
|
|
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.
| Eligibility | Benefits |
|
|
Also Read: LIC premium without tax
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.
| Eligibility | Benefits |
|
|
Also Read: Senior citizen saving scheme
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.
| Eligibility | Benefits |
|
|
Also Read: How to reduce tds in salary
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.
| Eligibility | Benefits |
|
|
Also Read: LIC policy for girl child
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.
| Eligibility | Benefits |
|
|
Also Read: 50 lakh fd interest per month
| 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 |
| 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 Availed 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 |
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 polivy 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
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One of the best investment plans for girl child at present is SSY or Sukanya Samriddhi Yojana which is available at a rate of interest of 7.6%. Other top investments suitable for girl child include:
Children Gift Mutual Fund
National Saving Certificate (NSC)
Post-Office Term Deposit (POTD)
Unit Linked Insurance Plan (ULIP)
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
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.
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.
SSY or Sukanya Samridhhi Yojana is one of the best schemes that is available at post offices as well as banks including some private banks.
No, the SSY account doesn’t offer any loan option. However, it allows the insured to withdraw up to half of the accumulated sum once the girl child turns 18 years or has passed her 10th exam.
Sukanya Samridhhi Yojana is an affordable savings scheme that is aimed at families with low income. Under this scheme, the girl child can avail a specific amount of money at plan maturity.
The key aim of the scheme is to save the girl child from issues prevalent in the society such as abortions of girl fetuses as well as no proper means of education offered to the girl child etc.
PayBima Team
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.
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