Start saving for your child's education. Here are some ways you can save for your child's future
Child Insurance: A child insurance plan basically helps in financial planning for your child’s future needs at the right age. The policy is structured in such a manner that in case of the parent’s demise, the child will receive the policy proceeds towards their education costs. In case the parent is alive, the policy pays out money at specified intervals as planned under the policy. In this way, the policy ensures that the child’s education needs are taken care of under all circumstances.
Child benefit funds: There are a few mutual funds that are named as child benefit funds. These are like any other mutual fund in which investments are tailored to grow over the long term with a predefined asset allocation between equities and debt.
Sukanya Samriddhi Yojana: It is a small deposit scheme of the Government of India meant exclusively for a girl child and is launched as part of the Beti Bachao Beti Padhao campaign. The scheme is meant to meet the education and marriage expenses of a girl child. The interest on the deposit is compounded annually with option for monthly interest pay-outs to be calculated on balance in completed thousands. The current rate is 8.30 per cent.
Education loan: This is a priority sector lending by the banks which not only finances studies in India, but also abroad. The interest rate on the loan and the scheme are standardised across lenders. And, if you have taken education loan and are repaying the same, then interest paid on education loan is allowed as a deduction from the total income under Section 80E.