PPF, Sukanya Samriddhi Scheme: Best bets for a safe and secure future of your kids


New Delhi: In occasions of disaster, it’s your financial savings that will get you crusing. If you properly make investments or make financial savings, it is not going to solely profit you however your subsequent era too.

Small Savings Schemes are one of the very best choices that may be made for your youngsters to make a buffer or cushion for their future.

Small Savings Schemes embrace Post Office Savings Account, National Savings Monthly Income (Account), National Savings Recurring Deposit, PPF and Sukanya Samriddhi Account.

Here are two funding choices for a safe and secure future of your kids

Public Provident Fund

You can open your Public Provident Fund (PPF) account in your personal identify in addition to on behalf of a minor. PPF is a 15-year funding scheme beneath which an investor enjoys tax exemption on the time of deposit, accrual of curiosity and withdrawal.

The PPF Scheme, launched by the National Savings Organization in 1968 was geared toward making small financial savings a profitable funding possibility.

PPF presently provides an rate of interest of 7.1 per cent. 

A minimal of Rs 500 and a most of Rs 1.5 lakh each year may be deposited yearly in a PPF account at current.  Deposits may be completed most in 12 transactions. However, you need to observe that when you deposit greater than Rs1.5 lakh in your PPF account each year, the surplus quantity will neither earn any curiosity nor will probably be eligible for rebate beneath Income Tax Act.

Sukanya Samriddhi Scheme

Sukanya Samriddhi Scheme account may be opened within the identify of a woman youngster until she attains the age of 10 years. The deposits fetch 7.6 per cent. Account may be opened with a minimal of Rs 250 – and thereafter any quantity in a number of of Rs 100- may be deposited. The deposits made to the account, and additionally the proceeds and maturity quantity, can be absolutely exempted from tax beneath part 80C of the Income Tax Act.

Maximum Rs 1,50,000 may be deposited in monetary 12 months. Deposits may be made as much as 14 years from the date of opening of the account. After this era, the account will solely earn curiosity as per relevant charges.

One withdrawal shall be allowed on attaining the age of 18 years of account holder to fulfill schooling/marriage bills on the price of 50 p.c of the steadiness on the credit score of previous monetary 12 months.

The rate of interest on Sukanya Samriddhi account is revised each quarter, identical to different small financial savings schemes and PPF.

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