🚂 Current Fix Deposit Rates 🌞 SBI - General Citizen 3% to 7.10% Senior Citizen - 3.60% to 7.60% 🌞 HDFC - General - 3.00% to 7.25% Senior Citizen - 3.50% to 7.75% 🌞 ICICI - General - 3% to 7.10% Senior Citizen - 3.50% to 7.60% 🌞 PNB - General - 3.50% to 7.25% Senior Citizen - 4% to 7.75% 🌞 Kotak Mahindra - General - 2.75% to 7.20% Senior Citizen - 3.25% to 7.70% 🌞 Axis - General - 3.50% to 7.10% Senior Citizen - 3.50% to 7.85% 🌞 Bank of Baroda - General - 3% to 7.25% Senior Citizen - 3.50% to 7.55% 🚂 Current Recurring Deposit Rates 🌞 SBI - General 4.40% to 5.50% Senior Citizen 4.90% to 6.20% 🌞 ICICI - General 3.50% to 5.50% Senior Citizen 4% to 6.30% 🌞 HDFC - General 4.40% to 5.50% Senior Citizen 4.90% to 6.25% 🌞 KOTAK - General 4.30% to 5.20% Senior Citizen 4.80% to 5.70% 🌞 AXIS - General 4.40% to 5.75% Senior Citizen 4.65% to 6.50% 🌞 IDBI - General 7% to 7.15% Senior Citizen 7.50% to 7.65% ☁️ National Pension Scheme - 9% to 12% pa ☁️ Employees Provident Fund - 8.15% pa ☁️ Public Provident Fund - 7.1% pa Child Education Plan

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Child Education Plan

Many people, especially those in the lower class, lower middle class, and middle class, are not adequately planning for their children's education. This does not imply a lack of desire to provide proper education for their children. In fact, around 70% to 80% of people aspire for their children to receive a quality education, obtain degrees, and pursue professional careers or businesses. However, a significant number fail to plan effectively or set clear goals. In today's expensive world, proper planning for child education is essential, given the rising inflation and the subsequent increase in the cost of education. Unfortunately, some individuals, due to insufficient planning or limited financial resources, find themselves making sacrifices, taking high-interest loans, or redirecting their children's aspirations.

For example, consider the case of Mr. Prabhu, an accountant in a small-scale industry earning a monthly salary of Rs. 40,000. Despite having a son who excels academically, Mr. Prabhu has not invested in any education plan for the future. Now, as his son completes the 10th grade with aspirations to pursue aeronautical engineering, the lack of financial planning becomes evident. Unable to afford private tuition for the combined 11th and 12th grades along with JEE mains, Mr. Prabhu's son opts for a regular college instead of pursuing engineering.

When seeking admission to a reputed engineering college, they encounter financial challenges. Despite approaching financial institutions for a loan, Mr. Prabhu's low salary leads to rejection. Even his company offers only Rs. 3,00,000, which is insufficient. Consequently, the son decides to continue a regular degree in the same college, abandoning the dream of pursuing aeronautical engineering.

In conclusion, if Mr. Prabhu had started saving Rs. 3000 monthly from his salary when his son was in the 3rd standard, he could have accumulated a substantial amount to avoid the challenges faced later on. Planning and saving for a child's education are crucial to ensuring that financial constraints do not hinder their aspirations.

A child education plan is a financial product crafted to ensure that adequate funds will be available to cover a child's educational expenses. This plan entails investing money to secure the financial requirements for a child's education. The principle of "the more you invest, the more you will get" underscores the potential for increased returns over time. Notably, it combines both investment and insurance components. In the unfortunate event of the death of parents, a specified insurance amount is disbursed to the family. This dual functionality serves to provide financial support to the family and ensures that the child's education is safeguarded.

Some key features:

Investment Term:  Child education plans offers long term investment plans for help accumulate a significant amount by the time for higher education of child.

Premium:  Investor can pay premium monthly, half yearly and yearly.  A single amount premium facility also available for specific amount. 

Tax Benefits: Investors can claim for deduction under section 80C of the Income Tax Act upto 1.5 Lakh.

Flexibility:  Child education plan offer flexibility in terms of withdrawals, policy holder can receive payment on monthly, quarterly and yearly basis.

 

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