Last Updated on May 6, 2021 by Aradhana Gotur

For all you parents who have ambitious young girls with stars in their eyes, here are a few options that can help you save for her bright future.

The article covers:

1. Sukanya Samriddhi Yojana (SSY)

The SSY plan is specially designed to encourage you to save for your daughter. An SSY account can be opened any time after the birth of your daughter till she turns 10. Some features of the Sukanya Samriddhi Yojana are:

  • The account is opened in the name of the girl by her parents/legal guardians
  • Multiple accounts for the same girl are prohibited
  • The interest rate for SSY is 6.9% p.a. but is subject to change
  • A family can have only two SSY accounts, which means one for each daughter. If the firstborns are twins/triplets, no additional account can be opened if the second birth results in a girl child. If the first birth results in triplets (girls) or second birth results in twin girls, then three accounts can be opened by the family
  • The minimum investment amount is Rs. 1000; the maximum amount is Rs. 1,50,000 annually
  • The SSY account matures when the girl turns 21

SSY scheme has the EEE (exempt, exempt, exempt) tax feature under Section 80C and offers risk-free fixed returns. EEE feature means that the initial investment is eligible for a tax deduction, returns are not taxed, and the maturity amount is also not taxed.

2. Post Office Term Deposit (POTD)

Another valuable option for your girl’s future planning is the Post Office Term Deposit. This post office saving scheme allows you to open an account in post offices across the country. The features are:

  • The lock-in period for the scheme is 5 yrs
  • POTD can be transferred anywhere within the country
  • Depending on the tenure you choose, a POTD offers interest between 5.5% and 6.7%. The rates are subject to change
  • POTD can be opened for your child who is above 10 yrs
  • The minimum deposit amount is Rs 1,000; there is no maximum limit.

Interest earned on this scheme is added to your total annual income in the year of receipt and is taxed as per the tax rate applicable to your slab. However, POTD with a 5-yr tenure is eligible for tax benefits under Section 80C of the Income Tax Act.

3. Post Office Recurring Deposit (PORD)

One of the post office savings schemes that allow saving small amounts every month is the PORD. You can save as little as Rs. 100 per month. Some features of the scheme are:

  • The interest rate is subject to change from time to time. Currently, a 5-yr PORD offers interest at 5.8% p.a. compounded quarterly
  • The post office recurring deposit scheme has a medium-term length of 5 years and can be extended after that
  • It can be opened for your daughter/s above the age of ten with you as the guardian

The PORD scheme is a good option if you are looking at a disciplined way of investment. It is a risk-free investment backed by the government.

4. National Savings Certificate (NSC)

NSC is another popular post office savings scheme. Some of its features are:

  • Tenure is 5 yrs
  • The minimum deposit is Rs. 1,000 with no maximum limit
  • Currently, interest is paid at 5.9% p.a., which is subject to change with time

Tax benefits under Section 80C, risk-free returns, and transferability are the chief advantages of NSCs.

5. Public Provident Fund (PPF)

The PPF is a savings option that also helps in tax saving and retirement planning. Apart from that, it can also serve as a lucrative investment option for your girl child. 

  • The minimum tenure is 15 years, which may be extended in blocks of 5 years
  • The current interest rate offered is 6.4% p.a., which is subject to change
  • The minimum investment is Rs. 500; the maximum is Rs 1.5 lakh annually
  • Only Rs 100 is required for account opening
  • The PPF account can be in the name of one person only. Opening a statement in a joint name is not allowed

Minimal risk, the EEE tax feature, and a fifteen-year tenure make it ideal for long-term planning for your daughter.

6. Children Gift Mutual Fund

Designed for accumulating a sizable corpus for milestones in your daughter’s life, children’s mutual funds offer many advantages. The features are listed below:

  • Children’s Gift Funds are hybrid or balanced funds that invest in a combination of equity and debt instruments.
  • The funds are locked in till your child turns 18.

Children funds create long-term appreciations and allow you to invest in a combination of debt instruments and equity stocks as per your choice. You can use Tickertape’s Mutual Fund Pages to evaluate your desired funds and choose one as per your financial goals and risk appetite.

7. Mutual funds via Systematic Investment Plan (SIP)

A systematic investment plan offers you an option to invest the desired amount every month in a mutual fund of your choice to save for your daughter’s future. The features of a SIP are:

  • Each month a predefined amount is deducted from your account towards the investment
  • You can invest in different SIPs simultaneously
  • Can start with as lows as Rs 500 per month
  • Depending on your goals, you could invest in equity, debt, or mixed funds

SIPs offer advantages like the power of compounding, and rupee cost averaging and better returns in the long run when compared to a recurring deposit.

8. Gold ETFs

Gold has been traditionally a preferred choice for investing for girls. In current times, instead of investing in physical gold, you can invest in gold ETFs. 

  • Gold ETF, just like a mutual fund, can be bought online
  • One gold ETF unit is equal to one gram of gold
  • Gold ETFs are open-ended; you can enter and exit as per your choice

Unlike investing in physical gold, investing in Gold ETF does not come with safety and storage hassles. You can invest small amounts too in Gold ETFs. They help in diversifying your portfolio.

9. Unit Linked Insurance Plans (ULIP)

ULIPs combine life insurance with investment. A part of the premium paid goes towards insurance; the remaining is invested in equity. 

  • Child ULIPs offer triple benefits
  • If the parent dies, the family receives a regular monthly payout for paying the child’s feeFor all you parents who have ambitious young girls with stars in their eyes, here are a few options that can help you save for her bright future.s
  • They also receive death benefits for meeting daily expenses.
  • The insurer pays future premiums

Continuity in investment when the parent is not there is the main advantage of this option.

10. Fixed deposit

Fixed deposits are the vanilla ice cream of the investment world. You can open an FD for your daughter in any bank or NBFC. The features of FDs are:

  • FD investment can be started with just Rs 1,000
  • Generally, the term varies from a few months to 10 yrs
  • Flexibility to get interest payout at maturity, monthly, quarterly, and annually

Benefits of investing in FDs include flexibility, safety, and liquidity.


Note that all the above investments except for the Sukanya Samriddhi Yojana are available to invest for a boy child as well. Investing in a combination of these products can help you minimize risk and maximize returns. You should research well before investing in financial products— offers you tools that help you make informed investment decisions.