Government investment schemes are important to ensure financial security and a better future for children. Recently launched NPS Vatsalya Yojana, Sukanya Samriddhi Yojana (SSY) and Public Provident Fund (PPF) are such popular schemes in which investors can choose according to their financial goals.
nps vatsalya (NPS Vatsalya) The scheme is for children up to 18 years of age, which makes market based investments and gives an average return on investment of 9.5% to 10%. This scheme provides children with the benefit of compound interest and saves for retirement. Also, after three years, 25% of the amount can be withdrawn for education or emergency. The scheme also offers additional 80CCD(1B) tax deduction along with section 80C.
There itself, Sukanya Samriddhi (Sukanya Samriddhi Yojana) The scheme is specially designed for girls. In this, interest is available at the government guaranteed rate of 8.2%, which is safe and tax free. The amount in this scheme is not very liquid, but it is better for education and marriage, because 50% of the amount can be withdrawn after 18 years. Investment in this is completely tax free.
ppf scheme is also available to minors and comes with a lock-in period of 15 years. Its interest rate is 7.1%, which provides stability and security. This scheme offers tax exemption and is suitable for long term.
If you want to create long term savings and retirement fund for children then NPS Vatsalya can be a better option. Whereas Sukanya Samriddhi Yojana is a safe and high interest rate option for girls. The PPF scheme is suitable for families who want stable and secure investments. While investing, you should choose the right plan keeping in mind your preferences, risk acceptance and financial goals.
Thus, all three schemes are better in their own ways and many families also invest in these schemes in combination so that the future of the child can be ensured.