How to Secure Funds for my Child’s Education?

Mutual Funds

From the time your children are born your only focus is to fulfil their wishes and aspirations, and that no valid demand of theirs goes unfulfilled. Hence, you may leave no stone unturned to admit them into the best of schools and enrol them for the smartest of activities. But, soon you realise that the cost of education is rising by the day. And fulfilling the demands of your children may get difficult in the future. But, don’t you worry; you can continue to fulfil your children’s demand despite the rising expenses with the help of investment options. Invest in a good investment scheme today to accumulate sizeable corpus to sponsor your children’s education effectively.

Fixed Deposit (FD)

If you decide to park your money in a fixed deposit, you are at least risk. Yes, fixed deposit for children are one of the safest and most stable investment options to grow your money. It not only allows opening an account at a nominal amount but also gives a higher rate of interest compared to other schemes. Moreover, some financial companies such as Bajaj Finance provide a fixed deposit at a higher rate of interest and many additional benefits. Therefore, it is one of the best investment options available in the market. Now, you can open an account sitting at home and even manage it online without personally going to the financer. Three simple steps of the application process and you are very close to funding your child’s education. Also, the interest earned on this FD is eligible for tax exemption under Section 80C of the Income Tax Act.

Benefits

    • Financial security & stability
    • Low investment, low risk and high returns
    • Flexible tenor
    • Tax exemption

Gold Saving

Gold has been one of the bankable investment options since olden times. If you are in India, you cannot eliminate gold as one of the active investment options. Be it gold bars, gold jewellery, gold mutual funds or gold ETF, the value of gold escalates quickly and hence a preferred investment option. Many parents prefer to invest in gold through ETFs, as the value of gold never depreciates. Moreover, gold jewellery usually involves ‘making charges,’ hence it is advisable to invest in ETFs than in jewellery.  At times, gold is considered an investment option for the weddings of off-springs. Hence, if not for education, this investment will definitely pay off during the wedding of your children. Therefore, gold saving can be considered as an investment scheme that yields dual benefit.

Benefits

    • Higher returns
    • Value never depreciates
    • Dual benefits
    • Tried and tested investment scheme

Sukanya Samriddhi Yojana (SSY)

This investment option is only for the girl child, to encourage their birth and education. It is considered to be a great scheme as you can open the account after the birth of the girl child till ten years of age and can invest a minimum amount Rs.1000 to Rs.1.5 lac in a year for 14 years. The rate of interest too is higher compared to other investment options. This ensures a sizeable corpus for your daughter’s education. However, the maturity period for this scheme is 21 years. Hence, the final amount will be made available only after maturity. Hence, it can be of utmost importance for your daughter’s higher education. However, partial withdrawals are allowed after the child becomes 18 years of age. SSY falls under EEE product, which means exempt, exempt, exempt. Therefore, the interest earned is eligible for tax exemption under Section 80C of the Income Tax Act.

Benefits

    • Only for the girl child
    • High interest rates
    • Partial withdrawal allowed
    • Tax exemptions

Personal / Education Loan

Social Education

In case if you are uninformed or miss out on investing for your children at a young age, there is no reason for you to worry. Availing educational or personal loan to sponsor or children’s education can solve all the financial woes. Non-banking financial companies offer educational loans at a nominal rate of interest, easy application process and instant approval. You can avail the facility up to 25 lakhs at affordable EMIs and flexible tenor. With the money, you can fulfil your children’s dream of higher studies in the best of the university.

Benefits

    • The higher amount for access
    • Affordable EMIs
    • Flexible tenor
    • Instant disbursal of loan

Fund your child’s education by investing in the best investment options in India and give wings to their career. Fixed Deposits in their sheer nature of safety and guaranteed returns are a great way to set aside a specific amount for your child’s education.

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