Many parents in India want to save money for their son’s future education and marriage. The good news is that India Post offers several safe and trusted saving schemes for boy children. These schemes are backed by the Government of India, which makes them completely secure and reliable.
While the popular Sukanya Samriddhi Yojana is specifically designed for girl children, parents of boy children can choose from many other excellent post office schemes that offer good returns and tax benefits.
Why Choose Post Office Schemes
Post office schemes are among the best savings options for your boy child for several important reasons. The Government of India backs all these schemes, which means your money is completely safe. Unlike market-linked investments that can go up and down, post office schemes provide guaranteed returns that you can count on.
Many of these schemes also offer tax benefits under Section 80C of the Income Tax Act, helping you save on taxes while building your child’s future. The flexibility to choose different time periods and withdrawal options makes these schemes suitable for various goals like school fees, college education, or marriage expenses.
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Best Post Office Schemes for Boy Child
1. Public Provident Fund (PPF)
The Public Provident Fund is one of the most popular long-term saving options for boy children. Parents or guardians can open a PPF account on behalf of their minor child. The current interest rate is around 7.1% per annum, which is compounded annually.
You can start investing with just ₹500 per year and go up to a maximum of ₹1.5 lakh per year. The scheme has a tenure of 15 years, which can be extended in blocks of 5 years. After 7 years, you can make partial withdrawals if needed for your child’s education or other expenses.
The best part is that the entire maturity amount is tax-free, and you also get tax benefits under Section 80C on your contributions. This makes PPF perfect for funding your son’s higher education and marriage expenses.
2. National Savings Certificate (NSC)
National Savings Certificate is another excellent option that offers guaranteed returns with full government backing. The current interest rate is approximately 7.7% per annum, which is compounded annually but paid at maturity.
You can start with a minimum investment of ₹1,000, and there is no upper limit. The scheme has a fixed tenure of 5 years. While premature withdrawal is generally not allowed, you can take a loan against the NSC certificate when needed.
NSC provides tax benefits up to ₹1.5 lakh under Section 80C. The interest you earn can be reinvested to get the benefit of compounding, helping your money grow faster.
3. Post Office Recurring Deposit (RD)
If you prefer saving a small amount regularly instead of a lump sum, the Post Office Recurring Deposit is perfect for you. You can start with just ₹100 per month and there is no maximum limit.
The interest rate is around 6.7% per annum, compounded quarterly. The tenure is 5 years, and you can make partial withdrawals or premature closure after 3 years if necessary. This scheme encourages disciplined savings and is suitable for meeting short-term goals like school expenses.
You can also take a loan against your RD account with interest at 2% above the RD rate. Tax deductions are available under Section 80C up to ₹1.5 lakh annually.
4. Kisan Vikas Patra (KVP)
Kisan Vikas Patra is a unique scheme that doubles your money over a fixed period. The minimum investment is ₹1,000 with no upper limit. The current interest rate is around 7.5% per annum, compounded annually.
Your money doubles in approximately 124 months, which is about 10 years and 4 months. You can make premature withdrawals after 2.5 years if needed. This scheme is ideal for building a substantial education fund for your son.
You can also take loans against KVP certificates, making it a flexible investment option. However, unlike PPF and NSC, KVP does not offer tax benefits, and the interest earned is taxable.
5. Post Office Savings Account
The Post Office Savings Account is a basic savings option perfect for starting early. Parents can open this account for minors, and children above 10 years can operate it independently. The minimum amount to open the account is just ₹500.
The interest rate is 4% per annum, which is subject to periodic revision. There is no fixed maturity period as it operates like a regular savings account. You can make withdrawals anytime while maintaining the minimum balance.
The benefit is that interest up to ₹10,000 per year is tax-exempt under Section 80TTA. This account helps children learn the habit of saving from an early age.
6. Post Office Monthly Income Scheme (POMIS)
The Post Office Monthly Income Scheme is suitable if you want regular monthly income for your child’s ongoing expenses. The minimum deposit is ₹1,500 and the maximum is ₹4.5 lakh for individual accounts.
The current interest rate is 7.4% per annum, paid monthly. The scheme has a tenure of 5 years. After 1 year, you can take a loan up to 50% of the principal amount.
However, partial withdrawals are not allowed before maturity, and this scheme does not offer tax benefits under Section 80C.
7. Ponmagan Podhuvaippu Nidhi Scheme (PPNS)
The Ponmagan Podhuvaippu Nidhi Scheme is a special scheme launched by the Tamil Nadu government specifically for boy children. This scheme targets male children from economically weaker sections of Tamil Nadu.
Boys who are permanent residents of Tamil Nadu can open this account with a guardian if they are minors. The minimum contribution is ₹100 per month and ₹500 per year, with a maximum of ₹5 lakhs per annum. The scheme offers an attractive interest rate of 9.7% per annum.
The maturity period is 10 years. Partial withdrawals are allowed after 7 years, and you can take a loan against the balance after 3 years. The scheme is eligible for tax deductions under Section 80C.
Quick Comparison Table
| Scheme Name | Minimum Investment | Interest Rate | Tenure | Tax Benefit |
|---|---|---|---|---|
| PPF | ₹500/year | 7.1% p.a. | 15 years | Yes (80C) |
| NSC | ₹1,000 | 7.7% p.a. | 5 years | Yes (80C) |
| RD | ₹100/month | 6.7% p.a. | 5 years | Yes (80C) |
| KVP | ₹1,000 | 7.5% p.a. | ~10 years | No |
| Savings Account | ₹500 | 4% p.a. | No fixed tenure | Interest up to ₹10,000 exempt |
| POMIS | ₹1,500 | 7.4% p.a. | 5 years | No |
| PPNS | ₹100/month | 9.7% p.a. | 10 years | Yes (80C) |
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How to Open an Account
Opening a post office account for your boy child is simple and straightforward. First, visit your nearest post office with the required documents. You will need to fill out an application form for the scheme you have chosen.
Prepare KYC documents including identity proof and address proof of the guardian. For the minor child, you need to provide age proof such as an Aadhaar card or birth certificate. Carry a passport-size photograph of both the guardian and the child.
Make the initial deposit as per the scheme’s minimum requirement. After processing your application, the post office will provide you with an account passbook for future reference.
Important Points to Remember
When choosing a post office scheme for your boy child, consider your investment goals and time horizon. For long-term goals like higher education or marriage, PPF or KVP are ideal choices. For short-term goals, consider RD or a savings account.
All post office schemes are low-risk and backed by the government. If you prefer guaranteed returns with minimal liquidity, NSC or KVP are better options. For tax-saving purposes, focus on PPF and NSC as they offer the best tax benefits.
Consider schemes that allow partial withdrawals in case you need money for emergencies or unexpected expenses. Remember that while opening an account for a minor, only one guardian can open the account, and it must be a natural or legal guardian.
Benefits of These Schemes
Post office saving schemes offer multiple benefits that make them ideal for your boy child. These schemes are simple to purchase and need minimal documentation, making the process hassle-free. They offer fixed returns, which means you know exactly how much your money will grow.
The schemes are easily accessible for both rural and urban investors across India. They are mostly risk-free and future-oriented, with interest rates ranging from 4% to 9.7% depending on the scheme. The sovereign guarantee of the Government of India is the biggest advantage of post office savings schemes.
These schemes cater to different types of investors with various needs, offering benefits like tax savings and guaranteed returns. Some schemes like PPF have a 15-year term, making them well-suited for long-term goals like your child’s higher education and career development.
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Conclusion
Post office schemes provide safe and reliable investment options for securing your boy child’s future. Whether you want to save for education, marriage, or other life goals, there is a suitable scheme for every parent’s needs. The combination of government backing, guaranteed returns, and tax benefits makes these schemes an excellent choice for long-term wealth building.
Start early and choose the scheme that best matches your financial goals and investment capacity. Regular savings, even in small amounts, can create a substantial corpus over time for your son’s bright future.
Disclaimer: This article is for informational purposes only and should not be considered as financial advice. Interest rates mentioned are approximate and subject to periodic revisions by the Government of India. Please visit your nearest post office or consult a certified financial advisor for the latest rates and detailed information before making any investment decisions. Please read all scheme-related documents carefully before investing.
