The Post Office Scheme for Boy Child is a set of saving schemes introduced by the Government of India, available at post offices across the country; this initiative provides parents who want to provide their boys with a solid financial foundation with a safe and dependable investing alternative. It's a great way to make sure every boy child has a happy and safe future because of its appealing interest rates and government backing. Let's examine this plan in more detail and see how it can significantly impact your child's life.
Benefits of the Post Office Saving Scheme
1. Credibility: Since the Indian government supports Post Office Schemes, they are incredibly reliable and credible.
2. Attractive Interest Rates: By providing competitive interest rates, these programmes ensure that your money will increase over time.
3. Tax Benefits: Tax benefits are available under Section 80C of the Income Tax Act for specific programs, including the Public Provident Fund (PPF) and National Savings Certificates (NSC).
4. Accessibility: Post offices are spread out across the nation, and investors in both urban and rural areas can participate in these schemes.
5. Long-Term Benefits: These programmes offer steady returns and promote long-term investments.
Types of Post Office Scheme for Boy Child
There are several post office savings plans offered in India for the benefit of the boy child. These programmes are designed to encourage saving for the child's future education and financial stability.
Some of the top 5 saving scheme options that parents can opt for their child are as follows:
- Ponmagan Podhuvaippu Nidhi Scheme
- Public Provident Fund (PPF)
- National Savings Certificate (NSC)
- Kisan Vikas Patra (KSV)
- Post office Recurring Deposit (RD)
1. Ponmagan Podhuvaippu Nidhi Scheme
In 2015, the Tamil Nadu government introduced the Ponmagan Podhuvaippu Nidhi Scheme, a social welfare initiative targeting economically disadvantaged young males. Operated through the Post Office, the scheme aims to provide financial assistance to these students by enabling them to accumulate high-interest returns on their contributions, creating a reserve for their educational expenses.
| Feature | Details |
| Launched By | Government of Tamil Nadu in 2015 |
| Administered By | Department of Post |
| Scheme Type | Public Provident Fund (PPF) Scheme |
| Eligibility | A boy from an economically weaker section who is a resident of the state of Tamil Nadu. |
| Account Type | Only Single Account Holder |
| Who Can Apply? | Minor Child (<10 Years of Age): The Guardian opens the account in the name of the child. Male Child Above 10 Years of Age: Opens PPNS account himself |
| Contribution Amount | Minimum Amount to Open the Account: Rs. 100. Minimum Annual Deposits: Rs. 500. Maximum Annual Amount: Rs. 1.5 lakhs |
| Contribution Payment Options | Lump Sum or 12 Instalments |
| Maturity Period | 15 years, extendable by 5 years within a year of maturity |
| PPNS Interest Rate | 9.7% p.a. (decided by the government periodically) |
| Interest Payment | Compounded Annually |
| Nomination Facility | Available |
| Premature Closure Before Maturity | Not Permitted |
| Partial Withdrawals | From the 7th financial year of opening the PPNS Account |
| Loan Facility | Available after the completion of 3rd financial year of opening the account |
| Tax Benefits on Investment | Tax Deductions on Investments of up to Rs. 1.5 lakhs under Section 80C of the IT Act, 1961 |
| Tax Benefits on Interest Earned | Tax-Free |
| Transferability | PPNS Accounts can be transferred across branches of post offices in India |
| Payment Method to PPNS | Cash or Cheque |
| Last Date to Apply | Can Apply Anytime |
2. Public Provident Fund
One popular long-term investing program that the Indian government offers is the Public Provident Fund (PPF). When it was first introduced in 1968, the goal was to encourage long-term investing and financial planning among the general population and provide a safe and secure means of saving money.
| Feature | Details |
| Launched By | Government of India in 1968 |
| Administered By | National Savings Institute of the Ministry of Finance |
| Scheme Type | Long-term investment scheme |
| Eligibility | Indian citizens residing in the country. Minors can also have a PPF account in their name, operated by their parents |
| Account Type | Single Account Holder |
| Contribution Amount | Minimum Amount to Open the Account: Rs. 500. Minimum Annual Deposits: Rs. 500. Maximum Annual Amount: Rs 1.5 lakh |
| Contribution Payment Options | Lump Sum or 12 Instalments |
| Maturity Period | 15 years, extendable by 5 years |
| Interest Rate | Decided by the government periodically |
| Interest Payment | Compounded Annually |
| Nomination Facility | Available |
| Premature Closure Before Maturity | Not Permitted |
| Partial Withdrawals | From the 7th financial year of opening the PPF Account |
| Loan Facility | Available after the completion of 3rd financial year of opening the account |
| Tax Benefits on Investment | Tax Deductions on Investments of up to Rs. 1.5 lakhs under Section 80C of the IT Act, 1961 |
| Tax Benefits on Interest Earned | Tax-Free |
| Transferability | PPF Accounts can be transferred across branches of post offices in India |
| Payment Method to PPF | Cash or Cheque |
| Last Date to Apply | Can Apply Anytime |
3. National Saving Certificate (NSC)
The National Savings Certificate (NSC) stands out as a popular savings program provided by the Indian government. This fixed-income investment option is designed to encourage savings among small and middle-class investors, offering assured returns to enhance the financial prospects of the future of the boy child. NSCs are available for purchase at post offices across India, with a fixed maturity period of five years.
| Feature | Details |
| Launched By | Government of India |
| Administered By | National Savings Institute of the Ministry of Finance |
| Scheme Type | Fixed-income investment scheme |
| Eligibility | Indian citizens residing in the country. Minors can also have a PPF account in their name, operated by their parents. |
| Account Type | Single Account Holder |
| Contribution Amount | Minimum Amount to Open the Account: Rs. 500. Minimum Annual Deposits: Rs. 500. Maximum Annual Amount: Rs 1.5 lakh |
| Contribution Payment Options | Lump Sum or 12 Instalments |
| Maturity Period | 5 years |
| Interest Rate | 7.7% per annum |
| Interest Payment | Compounded Annually |
| Nomination Facility | Available |
| Premature Closure Before Maturity | Not Permitted |
| Partial Withdrawals | Not Permitted |
| Loan Facility | Not Available |
| Tax Benefits on Investment | Tax Deductions on Investments of up to Rs. 1.5 lakhs under Section 80C of the IT Act, 1961 |
| Tax Benefits on Interest Earned | Tax-Free |
| Transferability | NSC Accounts can be transferred across branches of post offices in India |
| Payment Method to NSC | Cash or Cheque |
| Last Date to Apply | Can Apply Anytime |
4. Kisan Vikas Patra (KVP)
Kisan Vikas Patra (KVP) is a savings scheme by the Indian Government to promote long-term savings among people from rural areas. It is a type of fixed income that helps you to invest your money with a guaranteed rate of return. They can be purchased from the post offices and have a fixed maturity period.
| Feature | Details |
| Launched By | Government of India |
| Administered By | National Savings Institute of the Ministry of Finance |
| Scheme Type | Fixed-income investment scheme |
| Eligibility | Indian citizens residing in the country. Minors can also have a PPF account in their name, operated by their parents |
| Account Type | Single Account Holder |
| Contribution Amount | Minimum Amount to Open the Account: Rs. 1000. There is no upper limit |
| Contribution Payment Options | Lump Sum or 12 Instalments |
| Maturity Period | 115 months (9 years and 5 months) |
| Interest Rate | 6.90% per annum |
| Interest Payment | Compounded Annually |
| Nomination Facility | Available |
| Premature Closure Before Maturity | Not Permitted |
| Partial Withdrawals | Not Permitted |
| Loan Facility | Not Available |
| Tax Benefits on Investment | Tax Deductions on Investments of up to Rs. 1.5 lakhs under Section 80C of the IT Act, 1961 |
| Tax Benefits on Interest Earned | Tax-Free |
| Transferability | KVP Accounts can be transferred across branches of post offices in India |
| Payment Method to KVP | Cash or Cheque |
| Last Date to Apply | Can Apply Anytime |
5. Post Office Recurring Deposits
Post Office Recurring Deposit (RD) is an investment plan offered by the Indian Postal System. It is designed to save money, particularly for the boy child every month. This program does not provide any upper limit options, allowing people to deposit as much as their financial capacity. Thus, the savings will increase with quarterly compound interest on RD over time.
| Feature | Details |
| Launched By | Government of India |
| Administered By | National Savings Institute of the Ministry of Finance |
| Scheme Type | Medium-term investment scheme |
| Eligibility | Indian citizens residing in the country. Minors can also have an RD account in their name, operated by their parents |
| Account Type | Single Account Holder |
| Contribution Amount | Minimum Amount to Open the Account: Rs. 500. There is no upper limit |
| Contribution Payment Options | Lump Sum or 12 Instalments |
| Maturity Period | 5 years |
| Interest Rate | 6.7% per annum, compounded quarterly |
| Interest Payment | Compounded Annually |
| Nomination Facility | Available |
| Premature Closure Before Maturity | Not Permitted |
| Partial Withdrawals | Not Permitted |
| Loan Facility | Not Available |
| Tax Benefits on Investment | Tax Deductions on Investment of up to Rs. 1.5 lakhs under Section 80C of the IT Act, 1961 |
| Tax Benefits on Interest Earned | Tax-Free |
| Transferability | RD Account can be transferred across branches of post offices in India |
| Payment Method to RD | Cash or Cheque |
| Last Date to Apply | Can Apply Anytime |
Conclusion
To sum up, the Post Office Scheme for Boy Child is a great initiative that helps parents safeguard their sons' finances by offering them a variety of investing choices. The Ponmagan Podhuvaippu Nidhi Scheme, Public Provident Fund (PPF), National Savings Certificate (NSC), Kisan Vikas Patra (KVP), and Post Office Recurring Deposit (RD) are reliable and tried-and-true investment schemes that offer a variety of options for long-term wealth creation.