Securing your children’s financial future is one of the most important responsibilities of a parent. From education and marriage to other key life expenses, your growing children will need financial support at different stages. To ensure they have the necessary funds when required, it’s essential to diversify your investments across different schemes.
In India, several investment schemes cater to this need, offering security and growth opportunities. Let’s look at some of the most effective investment options.
Sukanya Samriddhi Yojana (SSY)
The Sukanya Samriddhi Yojana is a government savings scheme aimed at securing the future of girl children. Parents or legal guardians can open an account for a girl child aged below ten years. The account matures after 21 years from the date of opening or upon the girl’s marriage after she turns 18. As of 2025, the scheme offers an interest rate of 8.2%, compounded annually. Deposits can range from a minimum of Rs 250 to a maximum of Rs 1.5 lakh per financial year. The scheme also provides tax benefits under Section 80C of the Income Tax Act.
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Public Provident Fund (PPF)
The Public Provident Fund is a long-term investment scheme backed by the Government of India. It offers an attractive interest rate of 7.1% currently, which is revised quarterly, and the interest earned is tax-free. Investments made in PPF are eligible for tax deductions under Section 80C. The scheme has a lock-in period of 15 years, making it suitable for long-term goals like funding higher education.
National Savings Certificate (NSC)
The National Savings Certificate is a fixed-income investment scheme that encourages small to mid-income investors to invest while saving on income tax. It has a fixed maturity period of five years and offers a competitive interest rate, which is revised periodically. The interest earned is reinvested and qualifies for a deduction under Section 80C. NSCs can be a safe investment avenue for accumulating funds for your child’s education.
Unit-Linked Insurance Plans (ULIPs)
ULIPs are insurance-cum-investment products that offer the dual benefit of life insurance and investment returns. A portion of the premium paid is allocated towards life insurance coverage, while the remaining is invested in equity or debt instruments. ULIPs have a lock-in period of five years and offer the potential for higher returns,
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