We might have heard of post office schemes for girl children but there are many schemes that you can choose for your boy child. Some of the schemes mentioned in this blog may not be specifically targeted toward a boy child but they can still be utilised by parents to secure the financial future of any child.
So, let’s dive in and take a look at the schemes, their key features, and how they can help you and your boychild.
Also Read: 3 Best Investment Options for Your Child in India
What Is Post Office Scheme For Boy Child?
The post office savings scheme for a boy child is a savings plan designed specifically for a male child to offer a stable and secure financial foundation. You can deposit your money in these schemes through the vast network of post offices across India.
Here are some of the schemes that you can consider for your boychild in 2024.
Public Provident Fund (PPF)
PPF is one of the most reliable long-term investment options and it is suitable for securing the future of a boy child. It is a government-backed savings scheme that offers tax benefits and good interest rates, making it an ideal choice for financial planning over the long term.
Plan Your Secure Future Today – Find Out How Much Your PPF Can Grow with PPF calculator
Key Features Of PPF
- At present, PPF offers an interest rate of 7.1% (the rate may change in the future).
- The investment tenure of PPF is 15 years, which can be extended in blocks of 5 years if needed.
- Contributions to PPF are eligible for deductions under Section 80C of the Income Tax Act.
- PPF falls under the exempt-exempt-exempt (EEE) category. This means the principal amount, the interest earned, and the maturity amount of PPF is completely tax-free.
Why Choose PPF?
PPF is suitable for parents who wish to build a corpus for their child’s education or marriage as it offers long-term benefits and the lock-in period ensures disciplined savings. Also, investors can open a PPF account in the name of a minor and build a substantial financial cushion for their boychild without any worry.
National Savings Certificate (NSC)
A reputable government savings programme, NSC enables parents to make investments on their son’s behalf. It offers a fixed return on your investment and is known for its security and tax-saving benefits.
Key Features Of NSC
- The interest rate of NSC is 7.7% for the quarter ending September 30, 2024.
- The investment duration of NSC is 5 years, making it suitable for medium-term financial goals.
- Investments of up to ₹1.5 lakh a year can earn a tax deduction under Section 80C of the Income Tax Act of 1961.
Why Choose NSC?
NSC is a great option for parents looking to save for medium-term goals like primary or secondary education. It provides fixed returns and tax benefits. This makes it a secure choice for accumulating a fund for the boy child’s future needs.
Kisan Vikas Patra (KVP)
The KVP scheme was introduced to encourage people to adopt a long-term financial discipline. The scheme is ideal for parents, who want to ensure long-term financial security for their boy child, whether it be for education or other significant milestones.
Key Features Of KVP
- The interest rate of KVP is 7.5%, compounded annually.
- The maturity period of KVP is 115 months.
- The maturity proceeds of KVP will continue to accrue interest until you withdraw the amount.
- You can use your KVP certificate as collateral or security to avail of secured loans.
- Withdrawals made after the maturity of the scheme are exempt from Tax Deducted at Source (TDS).
Why Choose KVP?
KVP is perfect for parents, who are looking for a low-risk, long-term investment to build a corpus for a boy child’s future. Since the investment doubles over time, it ensures a considerable return at maturity, which can be used for higher education or other financial needs.
Post Office Recurring Deposit (PORD)
Also known as National Savings Recurring Deposit, the Post Office Recurring Deposit (PORD) scheme allows you to save on a regular monthly basis for 5 years. This scheme is suitable for parents who want to inculcate the habit of saving systematically for their boy child’s future.
Also Read: All You Need To Know About Saving Income Tax
Key Features Of PORD
- The current interest rate of PORD is 6.7% per annum (quarterly compounded).
- The scheme has a 5-year maturity period.
- The minimum amount for a monthly deposit is ₹100, making it accessible to everyone.
Why Choose PORD?
PORD provides a great opportunity for parents who don’t have a large amount of money to invest in one go but wish to save a little bit systematically. The monthly investment can grow into a big corpus that can be used for future education or personal expenses.
Ponmagan Podhuvaippu Nidhi Scheme (PPNS)
This is a significant welfare initiative created for boy children in Tamil Nadu. The term ‘Ponmagan’ translates to ‘Golden Child’, symbolising the significance of this initiative. This is the best savings scheme for boy children as it provides financial aid and support for their development, ensuring their future.
Key Features Of PPNS
- The interest rate of the scheme is 9.7% per annum (decided by the government periodically).
- The maturity period of the scheme is 15 years, extendable by 5 years within a year of maturity.
- Investors can claim tax benefits under Section 80C of the Income Tax Act for their investment in PPNS accounts.
Why Choose PPNS?
PPNS is ideal for parents and their boy children due to its government-backed security, guaranteed returns, and tax benefits under Section 80C. It offers a low-risk, long-term savings option and competitive interest rates, which makes it suitable for future educational or financial needs while avoiding market volatility.
Post Office Monthly Income Scheme (POMIS)
This is a government-backed scheme launched to offer regular monthly income to individuals. Since POMIS offers a fixed monthly payout, it can be used to fund educational expenses, extracurricular activities, or day-to-day needs.
Key Features Of POMIS
- The interest rate of the scheme is 7.4% per annum payable monthly.
- The scheme has a fixed tenure of 5 years.
- You can make premature withdrawals with certain penalties.
Why Choose POMIS?
POMIS is suitable for parents seeking a stable income stream for meeting short-term expenses for their boy child. Since the scheme ensures regular payout, parents can use it to cover school fees or other educational costs.
Best Post Office Schemes For Boy Child – The Conclusion
Investing in the future of a boy child requires careful planning and choosing the right financial instruments. The post office offers a range of schemes that cater to several financial goals, from short-term educational expenses to long-term future security. Be it the long-term benefits of PPF, the steady income from POMIS, or the compounding returns of KVP, these schemes offer secure, risk-free investment options with attractive returns.
Before choosing the scheme, make sure it suits your financial situation and investment horizon. If you wish to know more about safe investment instruments that are suitable for securing your children’s future, you can check out our other blogs on personal finance and mutual funds.
If you wish to invest in more instruments to diversify your portfolio further, you can consider investing in Mutual Funds and Digital Gold. You can find both of these investment instruments in Koshex, where you can invest in them effortlessly. You can also track your EMIs and PF through our app. Manage and grow your money like a professional with our app. Sign up now!
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