Ensuring a secure financial future for your daughter is one of the most meaningful responsibilities as a parent. With rising education costs, marriage expenses, and inflation, saving systematically for your girl child is not just important—it’s essential. Fortunately, India offers a range of government-backed and private investment options designed especially for a girl child’s future.
In this guide, we will explore the best savings plans for a girl child in India in 2025, their features, benefits, and comparisons to help you make an informed choice.
📌 Why Is a Savings Plan Important for Your Girl Child?
Raising a daughter involves various financial milestones such as:
- Quality education (school, college, professional)
- Marriage expenses
- Health and safety
- Financial independence in adulthood
A dedicated savings plan ensures that you’re financially prepared when these milestones arrive.
🎯 Key Factors to Consider Before Choosing a Savings Plan
Before you choose a plan, consider:
| Factor | Description |
|---|---|
| Safety of capital | Government-backed or regulated by SEBI/IRDAI |
| Returns | Fixed interest or market-linked growth |
| Liquidity | Ease of partial withdrawals for education |
| Tax benefits | Under Section 80C and maturity exemptions |
| Lock-in period | Ensures disciplined long-term saving |
🏆 Best Savings Plans for Girl Child in India (2025)
1. Sukanya Samriddhi Yojana (SSY) – Government’s Flagship Scheme
The Sukanya Samriddhi Yojana is arguably the most popular and safest scheme for girl child savings.
✅ Key Features:
- Only for girl children below 10 years
- Account can be opened in any post office or bank
- Minimum deposit: ₹250 per year
- Maximum deposit: ₹1.5 lakh per year
- Maturity: 21 years from the account opening
- Current Interest Rate (2025): 8.2% p.a. (compounded annually)
- Tax benefits under Section 80C
- Tax-free returns on maturity
💡 Pros:
- High fixed interest rate
- Backed by the Government of India
- Fully exempt from tax (EEE status)
⚠️ Cons:
- Long lock-in period
- Cannot invest once girl turns 10
2. Public Provident Fund (PPF) – Long-Term Safe Growth
Though not exclusive to girl children, PPF is a great long-term savings option for her future.
✅ Key Features:
- Minimum deposit: ₹500; Maximum: ₹1.5 lakh per year
- Lock-in period: 15 years (extendable)
- Interest Rate (2025): 7.1% p.a.
- Tax deduction under Section 80C
- Entire maturity amount is tax-free
💡 Pros:
- Safe and government-backed
- Flexible deposits
- Tax-free interest
⚠️ Cons:
- Cannot be withdrawn before 15 years (except partial withdrawals after 6 years)
3. Child Unit Linked Insurance Plans (ULIPs) – Insurance + Investment
ULIPs are market-linked plans that offer insurance and investment in one product.
✅ Key Features:
- Provides life cover for parent
- Market-linked returns (10-14% on average)
- Can choose equity, debt, or hybrid funds
- Lock-in period: 5 years
- Partial withdrawals allowed for education
💡 Pros:
- Dual benefit of insurance and growth
- Flexible premium options
- Useful for long-term goals like higher education
⚠️ Cons:
- Market risk involved
- Charges (premium allocation, mortality) can be high in early years
4. Recurring Deposit (RD) in Child’s Name
Banks and post offices offer Recurring Deposit schemes where small amounts can be invested monthly.
✅ Key Features:
- Tenure: 1 to 10 years
- Interest Rate: 6.5% to 7.5% p.a. (varies by bank)
- Safe and guaranteed returns
💡 Pros:
- Discipline in monthly saving
- Suitable for short-term needs (school fees)
⚠️ Cons:
- Taxable interest income
- Lower returns compared to long-term plans
5. Mutual Fund SIPs (Systematic Investment Plans) – For Higher Returns
Mutual funds can deliver high returns over 10-15 years if invested via SIPs.
✅ Key Features:
- Equity, hybrid, or debt mutual funds
- Monthly SIPs starting at ₹500
- Potential returns: 10–15% CAGR
- No maximum limit
💡 Best Options for Girl Child in 2025:
| Fund Name | Category | 5-Year CAGR |
|---|---|---|
| Mirae Asset Emerging Bluechip Fund | Large & Mid Cap | 18.9% |
| SBI Small Cap Fund | Small Cap | 21.5% |
| HDFC Children’s Gift Fund | Hybrid | 12.6% |
💡 Pros:
- High return potential
- Flexible investment amount
- Can use child-specific mutual fund schemes
⚠️ Cons:
- No capital guarantee
- Requires financial discipline and regular review
6. Post Office Monthly Income Scheme (POMIS)
You can use this as an income-generating option for your daughter once she turns 18.
✅ Features:
- Minimum investment: ₹1,000
- Maximum: ₹9 lakh (single account)
- Interest Rate (2025): 7.4% per annum
- Monthly interest payout
💡 Pros:
- Steady income post maturity of other savings plans
- Government-backed
⚠️ Cons:
- Taxable income
- Fixed tenure of 5 years only
7. National Savings Certificate (NSC)
Safe, fixed-income product issued by post offices. Can be used for education/marriage corpus.
✅ Features:
- Tenure: 5 years
- Interest Rate (2025): 7.7% compounded annually
- Tax deduction up to ₹1.5 lakh under Section 80C
- Minimum: ₹1,000 (no max limit)
🧮 Comparison Table of Best Savings Plans for Girl Child
| Plan | Interest Rate (2025) | Lock-in | Tax Benefit | Risk | Best For |
|---|---|---|---|---|---|
| Sukanya Samriddhi Yojana | 8.2% | 21 years | 80C + tax-free maturity | Very Low | Long-term education/marriage |
| PPF | 7.1% | 15 years | 80C + tax-free | Very Low | Higher education |
| ULIP | 10–14% (market-linked) | 5 years | 80C | Medium | Long-term wealth + insurance |
| RD | 6.5–7.5% | 1–10 years | No 80C | Very Low | Short-term needs |
| SIP (Mutual Fund) | 10–15% | Flexible | LTCG applies | High | Long-term wealth |
| POMIS | 7.4% | 5 years | No | Very Low | Monthly income post 18 |
| NSC | 7.7% | 5 years | 80C | Very Low | Medium-term goals |
📘 Best Strategy: Combine Safety + Growth
For optimal results, use a hybrid approach:
- Start with Sukanya Samriddhi Yojana for guaranteed growth.
- Add Mutual Fund SIPs for long-term wealth creation.
- Include ULIP if you want insurance + investment in one plan.
- Use RD or NSC for medium-term school/college expenses.
🎁 Tax Benefits Available for Girl Child Savings Plans
| Plan | Tax Section | Tax Benefit Type |
|---|---|---|
| SSY | Section 80C | EEE (Exempt-Exempt-Exempt) |
| PPF | Section 80C | EEE |
| ULIP | Section 80C | EEE (if premium <10% of sum assured) |
| NSC | Section 80C | Taxable maturity |
| Mutual Fund SIP | LTCG applies | No 80C benefit (except ELSS) |
📍 How to Choose the Right Plan for Your Daughter?
Ask these questions:
- What is her age?
- When will you need the money (school/college/marriage)?
- Do you prefer fixed or market-linked returns?
- Can you invest monthly or annually?
- Do you need insurance cover too?
A combination of fixed and market-linked products ensures both security and wealth creation.
💬 Expert Tips
- Start early – The earlier you start, the more your investments compound.
- Stay consistent – Even small monthly SIPs can grow significantly.
- Diversify – Never depend on one plan alone.
- Review yearly – Adjust based on income, expenses, and financial goals.
🔚 Conclusion: A Secure Future for Your Daughter Begins Today
Investing in the right savings plan for your girl child is a gift that will last her a lifetime. Whether you prefer guaranteed returns with SSY and PPF or are ready to explore high-growth mutual funds, the key lies in starting early and staying disciplined.
Remember: you are not just saving money—you’re investing in her dreams.