Post Office Child Plans

A child is a blessing and a responsibility. As a parent, you are responsible for your child’s well-being and ensuring that they have everything that they need. With inflation increasing every day, costs like education are also increasing.

Thus, it has become necessary for parents to invest in the right schemes, such as child plans, so that their children can make use of the funds for their future needs.
 

The Government of India has rolled out several investment schemes to help parents safeguard the future of their children. Of these schemes, the post office child plans are pretty popular.
 

In this blog, we will learn the details of the best post office child plans you can choose for your children.

What are Post Office Child Plans?

Post office child plans are welfare schemes by the government for the younger population of our country. If you are seeking such a plan for your child, you must know that there are several post office schemes you may choose from.

You can get returns on these schemes as interest, and the rate varies from about 4% to about 7%, depending on the scheme that you choose. These schemes have the backing of the Indian government, which makes them reliable.

Best Post Office Plans for a Child

Here are some of the top post office plans for a boy and girl:
 

1. Post Office Savings Account
    

   Factors	Features
   Rate of interest	4% per year
   Minimum amount of deposit	₹500
   Maximum amount of deposit	There is no limit
   Maximum amount that you can withdraw	₹50

   
   Here are some of the top features of the post office savings account:
    

   • Any guardian and parent can open this savings account on their child’s behalf. Furthermore, any child who is over the age of 10 years can open their account in their own name.

   • Only a single account can be opened for one child.
   • The child after reaching the legal age has to submit their KYC documents at the post office that is servicing the area.
   • If the minimum balance in the account comes down to ₹500, then you are not permitted to withdraw any money.
   • If you do not maintain the account’s minimum balance of ₹500, you will be charged ₹100 at the end of the fiscal year as a maintenance fee.
      

   It is one of the best post office plans for a child.

    

2. 1.5-Year Recurring Deposit Account
    

   Factors	Features
   Rate of interest	5.8% per year
   Minimum amount of deposit	₹100
   Maximum amount of deposit	There is no limit
   Duration for maturity	5 years after the date on which you have opened the account

   
   Here are some of the top features of the post office recurring deposit account:
    

   • The interest that you will receive on the money deposited will be compounded on a quarterly basis. Any guardian and parent can open this recurring account on their child’s behalf.

   • If you do not make any subsequent deposits to this account, you will have to pay a default amount. If you default for four consecutive months, your account will be discontinued.

   • An amount up to 50% of the balance amount can be availed of as a loan (this is applicable only if you make 12 instalments of the deposit)

   • There is an option under which you can extend the account for a period of 5 years. For this, you will have to inform the branch of the post office that is servicing your area.

 

3. Time Deposit Account
    

   Factors	Features
   Rate of interest	1 year - 5.5% 2 years - 5.5% 3 years - 5.5% 5 years - 6.7%
   Minimum amount of deposit	₹1000
   Maximum amount of deposit	There is no limit
   Duration for maturity	Can be 1,2,3 or 5 years (as per your choice)

   
   Here are some of the top features of the post office time deposit account:
    

   • Any guardian and parent can open this time deposit account on their child’s behalf. Furthermore, any child who is over the age of 10 years can open their account in their own name.

   • For one child, there is no limit to the number of accounts that you can open.

   • Any deposits that you make under the 5-year time deposit account are eligible for tax^* deductions under Section 80C.

   • There is an option under which you can extend the account after the maturity date. For this, you will have to inform the branch of the post office that is servicing your area.

   • You can make withdrawals only after 6 months after you make the deposit.

 

4. Monthly Income Scheme Account
    

   Factors	Features
   Rate of interest	6.6% per year
   Minimum amount of deposit	₹1000
   Maximum amount of deposit	In the case of a single account, it is ₹4.5 lakhs For joint accounts, the limit is ₹9 lakhs
   Duration for maturity	5 years after the date on which you have opened the account

   
   Here are some of the top features of the post office monthly income scheme account:
    

   • You can open a joint account comprising up to three adults.

   • By making a deposit of ₹1000, any guardian and parent can open this time deposit account on their child’s behalf.

   • The interest amount is paid from the date on which you open the account till the maturity date.

   • You can make withdrawals only after one year after you make the deposit.

   • If you close the account before 5 years, up to 2% amount can be deducted from your principal amount.

 

5. Sukanya Samriddhi Yojana
    

   Factors	Features
   Rate of interest	7.6% per year
   Minimum amount of deposit	₹250
   Maximum amount of deposit	₹1.5 lakhs
   Duration for maturity	21 years from the date on which you have opened the account

   
   Here are some of the top features of the Sukanya Samridhhi Yojana:
    

   • This is a post office child plan for girls that addresses the needs of the girl child.

   • Any guardian and parent can open this account on their child’s behalf if the age is less than 10.

   • A maximum of two accounts can be opened for two girl children in a family.

   • After the date of opening your account, you can make deposits for a period of 15 years.

   • You can make a withdrawal of 50% of the account balance if the girl has passed the 10^th class or has reached 18 years of age.

 

6. National Savings Certificate
    

   Factors	Features
   Rate of interest	6.8% per year
   Minimum amount of deposit	₹1000
   Maximum amount of deposit	There is no limit
   Duration for maturity	5 years

   
   Here are some of the top features of the National Savings Certificate:
    

   • Any guardian or parent can make an investment in this scheme to save for their children.

   • Any deposits that you make under the scheme are eligible for tax deductions under Section 80C.

   • The amount of interest is annually compounded and will be paid at the time of maturity.

   • You can close the account before 5 years, depending on the applicable rules.

Conclusion

Post office plans for the child are a great investment that you can make to secure your kid’s future. The plans are affordable, and the interest rate provided is competitive. Given the fact that these plans have the backing of the government, their reliability cannot be doubted. Child plans are an essential factor of your investment plan if you are a parent, so ensure that you research and choose the best plan for your children.