Securing a child’s future is one thing that every parent thinks about, and a post office scheme for the boy child is one among the many schemes that the government has launched to ensure the best future for kids.
Many state governments in India have post office schemes for the boy child, with various names, helping to provide for their basic necessities.
In addition, they offer strategies for saving money so that anyone can deal with undesired issues. However, one should consider long-term returns and risk concerns before finalising a program from a policy.
Let’s have a look at the multiple schemes available. Here are the details about 6 post office schemes for the boy child.
The Ponmagan Podhuvaippu Nidhi Scheme is a post office saving scheme announced by the government of Tamil Nadu and is exclusively available to state citizens. It was launched in September 2015. The parents need to invest in this scheme before the boy child crosses the age of 10 years.
Here are the features of this scheme.
This scheme has been around since the 1950s. Previously, NSC was issued with the intention of generating funds to support India's growth; however, it was transformed from an investment strategy for raising funds to an investment strategy for saving taxes.
Here are the features of NSC.
The KVP plan was first launched in 1988. It is suitable for lower and middle-class individuals. However, the age of the boy child must be below 18 years. Originally established in 1988, the KVP was withdrawn in 2011. However, in 2014, it was reintroduced in response to persistent requests.
Here are features of Kisan Vikas Patra.
The Post Office Monthly Income Scheme, often known as POMIS, offers a number of benefits. However, in order to start investing in this scheme, you must have a savings account in the Post Office. Since the Indian government oversees both investment and returns, Post Office Monthly Income Scheme (POMIS) is one of the safest post office schemes for the boy child. It guarantees investors will get a fixed monthly payment that is based on the amount invested.
Here are the features of this scheme.
A Public Provident Fund is a post office scheme for boy child designed to save taxes. It is a low-risk plan that also includes a nomination facility. It was introduced in 1968.
Here are the features of this scheme.
It is one of the best post office schemes for the boy child, which allows investments to ensure the safety of a child’s future. Compared to a bank's standard savings account, this plan offers a higher rate of return.
Here are the features of this scheme.
The schemes listed here are not the only ones available. The government of India has been introducing more schemes and benefits, especially since inflation has increased and not many parents can afford to give their children the best on their own. Investing in these schemes for your children will prove to be beneficial, given that the amount will grow by the time of maturity due to the compounding annual/quarterly rates.
There are several schemes launched by the Indian government aiming to provide a safe and secure future for kids. However, to find the best one, you must compare these schemes with the help of their return rates, maturity period, and so on. It will help you in selecting a scheme as per your needs.
Yes, you can open a post office account for a child. If you have a post office account, you may also invest in multiple post office saving schemes introduced by the government such as National Savings Certificate, Post Office Recurring Deposit, Post Office Monthly Income Scheme (POMIS), etc, to secure the future of your children.
National Savings Scheme, Kisan Vikas Patra, and Public Provident Fund are some of the popular investment schemes in Post Office. To figure out the one that works best for you, consider factors like timelines, investment options and your financial goals.
Investing in post office schemes is preferred by many due to the safety it provides and the tax deductions it can come with. Under section 80C, investors can claim tax deductions upto Rs. 1.5 Lakhs by investing in post office schemes.
With schemes like the Kisan Vikas Patra, it's possible to double your investment in 5 years. Schemes like the KVP offer higher interest rates than most banks and have a maturity period of 124 months to compound. You can also start a KVP for a minor to grow wealth till they reach their twenties.
Want to know more? Read on
1. Post office recurring deposit scheme and its interest rates
2. Sukanya Samriddhi Scheme - Definitions, returns, and more
3. Top Government Schemes for Home Loans
4. What is Youth Mobility Scheme in the UK