Last Updated on Feb 9, 2024 by Harshit Singh

Ensuring a secure future for a daughter is what every parent prioritises. In order to do that, one must start with building the corpus that contributes to the future of a daughter. In India, there are various child investment plans that you can explore as a parent. To ensure you invest in the best investment for a girl child in India, we have collated the list of 10 best saving schemes for a girl child.

List of 10 best investments for girl child

Sukanya Samriddhi Yojana (SSY)

The SSY plan is 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 8% p.a. as of June 2023.
  • A family can have only two SSY accounts, one for each daughter.
  • The minimum investment amount is Rs. 1,000; 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 not taxed.

Post Office Term Deposit (POTD)

Another good investment scheme for girl children 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 your chosen tenure, a POTD offers interest of 7.5% as of April 2023.
  • 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.

Post Office Recurring Deposit (PORD)

One of the post office savings schemes that allow saving small amounts every month is the PORD. In this investment plan for the girl child, 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% to 6.8% p.a. compounded quarterly.
  • The post office recurring deposit scheme has a medium-term length of 5 yrs 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 for your daughter. It is a risk-free investment backed by the government.

National Savings Certificate (NSC)

NSC is another popular post office savings scheme for a girl child. Some of its features are:

  • The tenure of NSC is 5 yrs.
  • The minimum deposit is Rs. 1,000 with no maximum limit.
  • Currently, interest is paid at 7.7% p.a.

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

Public Provident Fund (PPF)

The PPF is a savings option that also helps in tax saving and retirement planning. Apart from that, considering the high returns, it can also serve as the best saving scheme for a girl child. 

  • The minimum tenure is 15 yrs, which may be extended in blocks of 5 yrs.
  • The interest rate varies from bank to bank and 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 15-yr tenure make it ideal for long-term planning for your daughter.

Children Gift Mutual Fund

Designed for accumulating a sizable corpus for your daughter’s life, the children’s gift mutual fund offers 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’s funds create long-term appreciation and allow you to invest in a combination of debt instruments and equity stocks as per your choice.

Mutual funds via Systematic Investment Plan (SIP)

A systematic investment plan allows you to invest the desired amount every month in a mutual fund 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.
  • You can start with as low as Rs. 100 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. 

Gold ETFs

Gold has been traditionally a preferred choice for investing for girls. 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 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.

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 fee. 
  • The insurer pays future premiums.

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

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 Non-Banking Financial Corporation. 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.

The benefits of investing in FDs include flexibility, safety, and liquidity.


Note that all the above investments, except for the Sukanya Samriddhi Yojana, are also available for a boy child. Investing in a combination of these products can help minimise risk and maximise returns. You should research well before investing in financial products like mutual funds, equities, ETFs, etc., at Tickertape as it can help you make a well-informed investment decision. For more information on the best investment plans, refer to our blog on how to invest in different asset classes


What is the tax benefit of Sukanya Samriddhi Yojana(SSY)?

Under Section 80C, the returns from SSY are not taxed, and the maturity amount is not taxed.

Which is the best child plan to invest under Rs. 500?

Apart from Sukanya Samriddhi Yojana, National Savings Certificate, and Post Office Term Deposit, all the investment plans mentioned in this blog allow you to invest with a minimum amount of Rs. 500.

Harshit Singh
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