The post office: People are of the opinion that children should be put into savings from childhood and for this they often buy piggy banks in which they keep their savings. But children money is collected in the piggy bank.
But they dont get paid. Therefore you should tell the children about saving as well as investing. Therefore instead of a piggy bank you should invest in a scheme where you get good returns along with pocket money.
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Post Office RD
For this you can invest in the RD scheme of the post office. Your money will also be deposited in it and you will also get good returns on the maturity date. If you want you can also start it in the bank but it is good to invest in the post office for 5 consecutive years and get good interest. Let know it benefits.
₹5000 interest on ₹500
In this you can start investing with a minimum of Rs 100 and there is no limit on maximum investment. You will get 6.7 per cent interest. In such a situation if you deposit ₹500 every month then ₹6000 is deposited in the year and ₹30000 will be deposited in 5 years. You will get an interest of Rs 5681 at an interest rate of 6.7%. In this way your total amount will be 35681 rupees.
How to open an account for children
You can open a parent or guardian account in the name of your child. But minors above 10 years of age can open an account in their own name. It also allows you to open a joint account. You can open any number of accounts.
Rules for closing before maturity
But if you need to you can also close it before the maturity date. If you close it even 1 day before the maturity date then you are given an interest equal to the savings account of the post office. At present 4% interest is being given on post office savings account.
