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. 

Ponmagan Podhuvaippu Nidhi Scheme (Tamil Nadu)

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. 

• You may begin investing in this scheme with a minimum of ₹500 per year, and the maximum investment amount is ₹1.5 Lakhs (annually). 
• You can contribute up to 12 times per year.
• The interest rate of this scheme is based on government policies and market conditions.
• As a depositor parent, you can use the plan as collateral to obtain a loan from the fourth financial year of the account opening. 
• As per Section 80C of the Income Tax Act, you may claim a tax advantage and exemption of up to a maximum of ₹1.5 Lakhs per year.

National Savings Certificate (NSC)

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. 

• Any parent or legal guardian may create an NSC account for their male child less than 18 years in his name. 
• You can start investing in this plan with a minimum amount of ₹100 with no upper limit.
• The current interest rate is 7.6%, and the government revises the rates yearly. 
• This plan is available for a maximum lock-in tenure of 5 years.
• The tax advantage is available for up to ₹1.5 Lakhs.

Kisan Vikas Patra (KVP)

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.

• Any parent in India can invest in this scheme to secure their kids' future. 
• The government pays interest at a predetermined rate on your investment. The current interest rate offered is 6.9% which is compounded yearly.
• The KVP scheme often comes in denominations of ₹1,000, ₹5,000, ₹10,000, or ₹50,000. 
• You can start investing in this plan with a minimum of ₹1,000. 
• There is no maximum investment amount under this plan. 
• The maximum maturity period of this scheme is 10 years and 4 months and the return is doubled.
• You can withdraw your funds prematurely in the event of emergencies. 
• The KVP certificate can be transferred from one post office to another at any time.

Post Office Monthly Income Scheme (POMIS)

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.

• It comes with a lock-in tenure of 5 years. 
• You can start investing with the lowest deposit amount of ₹1500.
• The maximum deposit amount is ₹4.5 Lakhs.
• It is regarded as one of the greatest post office savings scheme for boy child as it enables parents to transfer their POMIS account to any state across the nation. 
• Parents can generate a consistent income because the yearly interest rate is 6.6%.

Public Provident Fund (PPF)

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 comes with a 15-year lock-in tenure.
• After the lock-in time is finished, parents can even prolong the time period of this scheme by 5 years.
• You can start investing with a minimum amount of ₹500 
• The maximum value you can invest is ₹1.5 Lakhs.
• It offers options for taking loans against assets commencing in the third year.
• The Indian government sets the interest rate for the plan based on market conditions. The current rate of interest is 7.1%, which may vary.
• Section 80C of the Income Tax Act also allows for tax benefits of ₹1.5 Lakhs on investments made through this scheme.
• It also allows transferring funds.

Post Office Recurring Deposit

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. 

• This scheme comes with a tenure of 5 years.
• You can start investing in this scheme with ₹100.
• There’s no limit to the maximum investment amount.
• The current interest rate is 5.8% per annum. 
• This scheme also allows adding a nominee.
• You can transfer funds from this plan to your savings account.

In a nutshell

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.

Frequently Asked Questions

1. Which scheme is good among Post Office schemes?

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. 

2. Can I open a Post Office account for a child?

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.

3. Which investment is best in post office?

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.

4. Can I invest my money in post office?

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.

5. Can I double my money in 5 years in post office?

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.

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