FD or RD
Fixed deposits in India are considered a safe, easy and popular option for savings. You can start a Fixed Deposit (FD) for your girl child. There is more interest on this than savings account. If you cannot save by depositing a lump sum, you can get a Recurring Deposit (RD). The special thing about RD is that you can put an amount in it every month. You can compare the FD and RD rates of different banks and choose the bank and account according to your convenience.
Sukanya Samriddhi Yojana
In Sukanya Samriddhi Yojana (SSY), which started in the year 2015, the account can be opened in banks besides the post office. In SSY, parents or legal guardians can open an account in the name of a girl up to the age of 10 years. Only one account will be opened in the name of a girl child. SSY account can start from a minimum of Rs 250. In this, a minimum deposit of Rs 250 and maximum of Rs 1.5 lakh has been fixed in a financial year. Talking about the interest rate, at the moment the Sukanya Samriddhi Yojana account is getting 7.6 percent interest annually in the post office.
One can invest in Sukanya Samriddhi Scheme for a maximum period of 15 years. The account can be closed only after the girl is 21 years old. However, normal premature closure is allowed when the child is 18 years old and gets married. After the age of 18, the child can do partial cash withdrawal from SSY account. Withdrawal limit is 50% of the balance in the account at the end of the last financial year.
PPF (Public Provident Fund) account can be started with a minimum of Rs 500. PPF account can be opened in post office or bank. The current annual interest rate on the Post Office PPF account is 7.1 percent. It is necessary to deposit minimum 500 rupees and maximum 1.5 lakh rupees in an account in a financial year. If the minimum annual amount is not deposited in the account, then the account becomes inactive and then activates again only after filling the previous balance, a charge of Rs 50 and an install. Nomination facility at Post Office PPF, facility to open another PPF account in the name of Minor is available. The post office PPF has a maturity period of 15 years and cannot be closed earlier.