Is There Any Government Scheme for a Boy Child?
Published On Jul 28, 2021 3:00 PM By InsuranceDekho
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Investing in your child’s future is the best and most important thing to do for your child as a parent. There are many child plans you can invest in the present scenario. There are several schemes especially for a girl child too. Now, the topic of discussion is government schemes, especially for a boy child.
Post Office Saving Schemes by IndiaPost- a government-backed organization, are amongst the most prominent savings and investment schemes in the country. These schemes are functional across all the post offices in the country i.e more than 1.5 lakh, making it accessible to the urban as well as rural communities. These schemes provide high interest rates on deposits and carry zero threats as they are ensured by the Indian Government. Some of the plans offered by IndiaPost also comprise tax benefits under Section 80C of the Income Tax Act,1961.
Types Of Post Office Saving Schemes
There are different types of post office saving schemes that are suitable to invest in for a boy child. Some of them are listed below.
Post Office Savings Account
A Post Office Savings Account is comparable to a savings account with a Bank. Just like in the case of a bank savings account, the Post Office savings account is also a highly liquid account as one can withdraw at any time as per their needs.
These accounts are favourable for parking savings that may be expected on short notice just like we do with the bank saving account.
Post Office Recurring Department
This is the 5 Year Recurring Deposit Account which lets you make residues with small fixed monthly instalments. It is one of the best ways to create a corpus by cultivating the pattern of saving every month.
The features of this scheme include -
- 5.8% interest rate per annum.
- Opening an account for an eligible person is the same as opening a bank account.
- Maturity is for 5 years and it can be extended for another 5 years if the life assured needs to.
- Deposits can be made exactly a month away after the account is opened.
- Rs. 100 is the minimum deposit requirement that needs to be paid every month.
- After 3 years, the life assured is allowed to make a premature withdrawal.
Post Office Time Deposit
Post Office Time deposits are the Fixed deposits that are given for the terms of 1,2,3 & 5 years. These deposits provide higher interest rates than the other savings accounts and are suitable for parking empty savings for the time as per necessities.
Some features of this plan are:
- The interest rates can be paid annually but they are calculated quarterly.
- The minimum deposit requirement is Rs. 1000 for opening an account in this scheme. There is no upper limit for the deposit.
- On-time deposits made for 5 years, there is a tax benefit. A tax deduction of up to Rs. 1.5 lakh is available under the IT Act, section 80C.
Ponmagan Podhuvaippu Nidhi, Post Office National Savings Certificate Scheme, Post Office Recurring Deposit, Post Office Monthly Saving Scheme, Kisan Vikas Patra, and the Public Provident Fund are some of the postal programmes for male children that you may invest in.
Importance of Child Insurance Plan
Can I Set Up An Investment Account for a Child?
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.