2 weeks ago

Child Savings: Punjab National Bank, YES Bank And Post Office

Parents have several ways to save money for a child’s future.

Punjab National Bank’s Balika Shiksha program is only for certain eligible girls, so it is not a normal FD for everyone.

It puts ₹3,000 in the girl’s name, but the money can generally be received at age 18 only after meeting conditions.

YES Bank offers regular fixed deposits for minors through a parent or guardian.

These deposits can last from seven days to 10 years and can pay up to 8% interest.

Sukanya Samriddhi Yojana is another option for girls younger than 10.

Parents can also consider PPF, NSC, recurring deposits and time deposits.

Each product has different rules for deposits, withdrawals, duration, interest and tax benefits.

Key facts

Balika Shiksha eligibility: Generally, girls must have passed Class VIII from a Kasturba Gandhi Balika Vidyalaya; certain SC/ST girls must be in Class IX at a government, government-aided or local-body school.
Balika Shiksha deposit: The government deposits ₹3,000 in the eligible girl’s name.
YES Bank minor FD: Tenures range from seven days to 10 years, with listed public interest rates from 3.25% to 8% for deposits below ₹2 crore.
Sukanya Samriddhi Yojana: For girls under 10, with annual deposits of ₹250 to ₹1.5 lakh and an interest rate of 8.2%.
Public Provident Fund: A 15-year account for a minor through a parent or guardian, with a listed interest rate of 7.1% and partial withdrawal after seven years.
National Savings Certificate: A five-year fixed-income product with a listed interest rate of 7.7% and Section 80C eligibility.
Post Office products: Recurring Deposits offer five-year terms at 6.7%; Time Deposits offer one- to five-year terms at 6.9% to 7.5%.

businesstoday.in · 2 weeks ago