When we welcome our baby into this world, we also make sure that their future is secured. To make their upcoming days even brighter, we as parents must start investing our money from the first year of the birth of our child. If you have a boy child, you can choose the Post Office savings schemes that can prove to be quite helpful for the kid when he grows up. So, here are some post office saving schemes for boy children that you can take a look at.
- Ponmagan Podhuvaippu Nidhi Scheme
Ponmagan Podhuvaippu Nidhi Scheme is one of the plans that was launched by the Tamil Nadu Government. The plan is limited only to the residents of the state. The parents of the boy child have to open an account in his name before he turns 10 years old. You will just have to pay a minimum of INR 500 to open this account, while the maximum amount can be INR 1.5 lakh. The income increases with an interest percentage of 9.70%. After the fourth year of opening this account, the parents can avail of a loan facility under this scheme. Parents are allowed to deposit money into this account not more than 12 times in one year. You can also save taxes under the income tax act. One of the very important things that you should know about this scheme is that the rate of interest may vary as per the market conditions as well as the government policies of the state.
- Post Office Monthly Income Scheme (POMIS)
Post Office Monthly Income Scheme, which is often called POMIS can be opened in a post office. However, you need to have a post office savings account to enjoy the benefits of this scheme. The lock-in period of this scheme is 5 years, and the money cannot be withdrawn by the parents immediately. The maximum amount that you can deposit in this scheme is INR 4.5 lakh, while the minimum is INR 1500. An account under this scheme can be transferred to any post office in the country. The annual rate of interest is 7.6%. Parents of the child can also earn a steady income through this scheme.
- Public Provident Fund (PPF)
This is also one of the post office schemes that you can opt for. When it comes to a boy child, this is one of the best options that you can get. The scheme is available with a lock-in period of 15 years. The tenure can be extended by parents once the lock-in period is over. The minimum amount of money that can be deposited in an account under this scheme is INR 500 and the maximum amount is INR 1.5 lakh. After completion of 3 years of this account from the date of opening, you can even take a loan against investing in this scheme. The current rate of interest is 7.1%, which can change. The rate of interest for this scheme is determined by the Government of India, which is based on the market conditions.
- Post Office Recurring Deposit
You can open a recurring deposit in a post office for your boy child. As compared to the standard bank savings account, the rate of interest in this account is much higher. You can deposit a particular amount of money for at least 5 years. The rate of interest may vary and you must be aware of them.
You can also buy a term insurance plan to secure not only your child’s future but your entire family’s. If you wish to know about the term insurance plans in detail, you can visit the website of IIFL today itself.