Five Savings Schemes Every Woman Should Know This Raksha Bandhan

Raksha Bandhan is more than a celebration of the bond between brothers and sisters. It is a reminder of the care, support, and security families share. This occasion can be an opportunity to think beyond the traditional gifts for sisters and instead strengthen their financial future. It could be building an emergency fund, buying insurance, or starting to invest for retirement; a nudge toward financial planning can help sisters become financially secure. This Raksha Bandhan, explore giving a thoughtful financial gift, or at least start a conversation about money with them that could be more valuable for them than a customary present.

Here are five financial gifts sisters should know about to build long-term financial security.

Public Provident Fund (PPF)

This scheme is not specific to women, but it is useful considering that it is a government-backed, low-risk investment. Initially, the account can be opened for 15 years, but can be renewed in a block of five years with no restriction on such renewals. The investment, interest, and maturity proceeds are tax-free under current rules. Further, there is no minimum or maximum age limit for a resident Indian to open this account. Simply put, a person of any age can open a PPF account. The account can be opened with a minimum of Rs 500, and the same amount (Rs 500) is required to be deposited every year to keep the account active.

Sukanya Samriddhi Yojana (SSY)

The Sukanya Samriddhi Yojana (SSY) account is only for a girl child. Parents or the legal guardians can open this account for a girl child until she reaches 10 years of age. It requires a minimum deposit of Rs 250 to open the account and the same amount every year to ensure that the account remains active. The maximum can be Rs 1.50 lakh in a year. The account matures after 21 years from the date of account opening, though deposits are required only for the first 15 years. Parents can avail of tax exemptions on the deposits. Currently, the scheme offers 8.2 per cent per annum. For a young girl in the family, opening this account shouldn’t be ignored.

Fixed Deposits And National Savings Certificate (NSC)

The National Savings Certificate (NSC) with the post office and fixed deposits with the post office and banks could also be a refreshing choice of gifts. It will not only help in saving money but also help your sister understand the secure avenue of investments, how they work, and, more importantly, the value of money. For a five-year lock-in maturity period, these options offer tax benefits and can work as a medium-term savings.

Senior Citizens' Savings Scheme (SCSS)

This scheme is particularly relevant for women aged 60 and above, who want a regular income during retirement. The minimum amount to open the account is Rs 1,000, and the maximum is Rs 30 lakh. This is opened initially for five years and then can be renewed in blocks of three years without a limit on such renewals. The account offers 8.2 per cent interest per annum as of now. It works as a quarterly payout FD, where the investment amount remains invested, and the interest is paid back every quarter at a fixed rate.

National Pension System (NPS)

For a younger sister, gifting an NPS account could be a gift for the long term. Though it doesn’t have any women-specific features, it can help them accumulate savings for retirement. They can continue the account with their savings, using flexible deposit and investment options. It is especially useful for women who have career breaks and are not covered under any employer-sponsored retirement plan. The account can be opened between 18 and 85 years of age. The minimum amount to open the account is Rs 500, and Rs 1,000 per annum is required to keep the account in an active state.

Having financial awareness is no longer a luxury now; it is essential for everyone, especially for women, because they have historically been left out of financial discussions, and what better occasion than Raksha Bandhan to take a step in this direction.