Financial planning for family

Best Investment Options For Your Child’s Education

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Your children are the future of the country and it is in your hand to make sure that our future is safe. To do it right, it is necessary to plan your child’s higher education as soon as they are born. Decisions related to saving and investing may be difficult for you. Here are the best investments for your child’s higher education:

Bank Fixed Deposit:

Bank deposits are investments made for a particular time frame. Due to this, the rate of interest at the time of return is higher. But in recent times most of the financial institutions have cut down the interest rates which made investing in bank fixed deposit little dull. And since the maturity amount is taxable, they are very safe but with very low after-tax returns.

Post Office Recurring Deposit:

Another very safe investment is to put money in post office recurring deposit. It is good for long term saving such as to save for child’s education. One major drawback with putting money in a post office is that the entire receivable amount is taxable. This makes the lump sum return on investment amount lower.

Equity shares:

Everybody knows how easy it is to make money through investing in shares. It requires research, knowledge, time and patience. Investing in shares for a long time is a wise decision: if everything goes as per plan, investing in shares alone can sponsor your child’s education and later their marriages, too. But remember: it’s very risky. Sometimes things do not turn out as per the plan and it is a big risk to take when it is for your child’s future.

Child Education Saving Plan:

This plan stands out from the rest as it comes with the option of yearly payout and loan facility in case of any emergencies. You can be there for them when they need you the most, as always. Apart from the above-mentioned benefits, there is the tax benefit too. You can avail tax benefits under Section 80C and Section 10 (10D) of Income Tax Act, 1961.

 

 

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