Securing the future and well-being of your daughter through the best investment plan designed for girl children in India is just as important as securing the future of your son. Offering a girl child proper education to pave the way for a successful career is crucial, empowering her to attain financial independence and self-sufficiency.
As a parent of a girl child, it is imperative to explore the optimal investment plans and options available in India to protect her future. The ideal savings plan for girl children should encompass features that provide them with access to greater opportunities for higher education and the fulfillment of their aspirations.
India offers numerous commendable investment plans and options tailored specifically for girl children, provided by banks and post offices, ensuring the most suitable saving scheme. However, it is essential for parents to gain a comprehensive understanding of these plans to evaluate and select the best investment policy that maximizes benefits according to their specific requirements.
In this article, we will delve into some of the finest saving schemes designed for girl children in India, exploring their details. But before we proceed, let’s briefly discuss the advantages of these investment plans.
A) Government Schemes for Investment
1) Sukanya Samriddhi Yojana (SSY)
The Sukanya Samriddhi Yojana (SSY) is specifically designed to encourage parents or legal guardians to save for their daughter’s future. This savings scheme allows you to open an SSY account anytime after your daughter’s birth until she reaches the age of 10. Here are some key features of the Sukanya Samriddhi Yojana:
- The account is opened in the name of the girl child by her parents or legal guardians.
- Only one SSY account is allowed per girl child; multiple accounts for the same girl are not permitted.
- As of June 2023, the SSY offers an attractive interest rate of 8% per annum.
- A family can have a maximum of two SSY accounts, one for each of their daughters.
- The minimum investment amount in the SSY account is Rs. 1,000, and the maximum annual investment allowed is Rs. 1,50,000.
- The SSY account matures when the girl child turns 21, providing her with a substantial corpus for various life goals.
- One of the key advantages of the SSY scheme is its EEE (Exempt, Exempt, Exempt) tax feature under Section 80C. This means that the initial investment is eligible for a tax deduction, the returns earned on the investment are not taxed, and the maturity amount received is also tax-free.
With the SSY, you can ensure that your daughter’s financial future is well-protected while enjoying risk-free fixed returns and tax benefits.
2) Children Gift Mutual Fund
Another excellent investment scheme for the girl child in India, suitable for both your son and daughter, is the Children Gift Mutual Fund. This scheme offers a balanced combination of debt and equity investments. It comes with the advantage of no premature withdrawal, ensuring that the invested amount remains untouched until the end of the restriction period, which is 18 years. This lock-in period contributes to the potential of generating substantial returns on the investment.
To open an account under this scheme, parents or guardians can do so in the name of their minor daughter or girl child. Documentation is required to establish the relationship with the girl. By investing in this plan, parents can effectively accumulate long-term financial security for their daughter’s future. It enables better planning for significant life events she may encounter.
Monitoring funds under this policy is hassle-free and straightforward. Moreover, throughout the investment period, no taxes are incurred until the redemption of the funds. Additionally, when taxes are applied at maturity, they are minimal, making it a tax-efficient option for securing your daughter’s financial future.
B) Government Schemes for Education
1) Balika Samriddhi Yojana (BSY)
The Balika Samriddhi Yojana (BSY) was introduced by the Central Government in 1997 to empower and support girl children in India. The scheme aims to change the perception of society towards the girl child and mothers, promote girls’ education, and provide financial assistance until their legal marriageable age.
Key features of the Balika Samriddhi Yojana include incentives for mothers upon the birth of a girl child and annual scholarships for their education. The benefits were enhanced over time to offer more substantial support to eligible girl children.
Under the scheme, eligible girl children receive a grant of Rs. 500 upon birth and annual scholarships throughout their education. The scholarship amounts vary according to the classes they are studying in.
The scheme targets families below the poverty line (BPL) in both rural and urban areas, including various marginalized occupations like vegetable and fruit sellers, rag-pickers, and payment vendors.
All benefits are provided to two girl children from each family, regardless of the family size. Girls born on or after 15th August 1997, belonging to BPL families, are eligible for the scheme.
2) CBSE UDAAN YOJANA
The CBSE UDAAN Scheme is a significant welfare initiative by CBSE aimed at empowering girls’ students. Launched in 2014, it operates under the guidance of the Central Board of Secondary Education and falls under the Ministry of Education. The primary objective of this scheme is to encourage more girls to enroll in technical educational institutes, particularly engineering courses.
Through the CBSE UDAAN Scheme, eligible girls studying in Class 11th or Class 12th can pursue engineering careers. The enrolled students receive support and guidance from CBSE to prepare for Engineering Entrance Examinations. Benefits include online and offline weekend classes, pre-loaded tablets, and other advantages.
Financial assistance, in the form of admission and tuition fees, is provided to selected girls after they secure admission in renowned engineering colleges like IITs or NITs. The final selection process is solely based on merit.
Girls students who meet the eligibility criteria can apply for the CBSE UDAAN Scheme through the online portal of the Central Board of Secondary Education.
3) National Scheme of Incentives to Girls for Secondary Education
The primary focus of this scheme is to uplift girls from SC/ST communities by providing them with monetary incentives for education. Eligibility criteria include:
- SC/ST girls who have successfully completed Class VII.
- Girl students from Kasturba Gandhi Balika Vidyalayas who have passed Class VII and enrolled in Class IX in State/UT Government, government-aided, or local body schools.
- Applicants must be below 16 years of age upon joining Class IX.
Selected candidates receive a fixed deposit of Rs. 3,000, which can be withdrawn with interest after passing the 10th board examinations and reaching 18 years of age.
C) FINANCIAL ASSISTANCE TO GIRL CHILD BY VARIOUS STATE GOVERNMENTS
Andhra Pradesh & Telangana – Girl Child Protection Scheme
This scheme focuses on promoting girls’ education up to at least Intermediate level, preventing early marriages, and empowering them from a young age. Financial benefits are provided to girls in need. Families with a maximum of two children, including one or two daughters, are eligible for the scheme. To learn more about the terms and conditions, visit the Girl Child Protection Scheme website.
Tamil Nadu – Sivagami Ammaiyar Memorial Girl Child Protection Scheme
The TN government aims to eradicate female infanticide, promote gender-neutral family planning, and support underprivileged girl children. For more information about this scheme, visit the Sivagami Ammaiyar Memorial Girl Child Protection Scheme website.
Madhya Pradesh – Ladli Laxmi Yojana
The Madhya Pradesh government offers financial benefits to families with one or more girl child(ren) to combat child marriage and female foeticide. After approval, Rs 6,000 worth of National Saving Certificates (NSC) will be purchased annually for 5 years in the girl child’s name. Learn more about the Ladli Laxmi Yojana scheme on their official website.
Haryana – Ladli Scheme
The Haryana government provides Rs. 5,000/- per year for up to five years to families with a second girl child, which will be released when the beneficiary attains adulthood. Find out more about the Haryana Ladli Scheme on their official website.
Odisha – Kishori Shakti Yojana
The Odisha government’s scheme aims to provide nutritional, educational, and financial support to adolescent girls between 11 to 18 years of age. For more details, visit the Kishori Shakti Yojana website.
Rajasthan – Rajshree Yojna
The Rajasthan government offers total financial assistance of up to Rs 50,000 to a girl child’s family for her educational, health, and other expenses up to Class XII. Find out more about the Rajshree Yojna scheme on their official website.
Maharashtra – Majhi Kanya Bhagyashree
Any family Below Poverty Line (BPL) with one or more girl children in Maharashtra is eligible for this scheme. The beneficiary can avail of financial benefits as detailed on the Majhi Kanya Bhagyashree website.
West Bengal – Kanyashree Prakalpa
The West Bengal government’s successful scheme provides an annual scholarship of Rs 750 to girls between 13 and 18 years and a one-time grant of Rs 25,000 for girls between 18 and 19 years old. For more details, visit the Kanyashree Prakalpa website: https://www.wbkanyashree.gov.in/kp_4.0/index.php.