Education Portal for Students in India

Open Your Own Roth IRA – Consider opening a Roth IRA in your own name. After five years of adding money, you can tap into the contributions without worrying about penalties or taxes if expenses pop up, and you can take account distributions without penalty if you use the money for qualified education expenses.
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Which investment plan is best for child education?

Different investment options for your child – Conventional products like fixed deposits may be insufficient to meet your child’s education expenses. You need to consider other products, such as equity funds, balanced funds, and shares. Based on the time horizon, you may choose among the following investment plans.

1. If your child will require the corpus within a period of five years, opting for debt mutual funds is advisable. Such funds are able to deliver returns that are higher than the inflation quotient while offering liquidity.
2. For long-term goals, you may combine different financial instruments. You may choose to invest in debt, equities, and gold. Exposure to the stock market is risky; however, equities offer the opportunity to earn higher returns in the long-term.
3. Public provident fund (PPF) is also one of the best investment plans for child education. However, you must start this early and invest consistently in building a large corpus.
4. Several insurance companies offer various children-focused products. You may opt for policies that mature when your child requires the money to pursue higher education.

It is also important to inculcate saving habits since early childhood. Teaching kids the basics of financial planning and involving them in the process is recommended. When planning to build an education fund, it is important that you evaluate the features, risks, and terms and conditions before making any decision.
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Which is the best investment for child?

Best Child Investment Plans

Plan Name	Entry Age	Maturity Age
PNB Metlife Smart Child Plan	Parent- 18/55 years Child- 90 days/17 years	75 years
Pramerica Rakshak Gold Child Plan	18/ 53,50, 47 years	65 years
Sahara Ankur Child Plan	0/13 years	40 years
SBI Life – Smart Scholar	Parent- 18/57 years Child-0/17 years	65 years

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How do I set up an investment account for my child?

UGMA/UTMA custodial accounts — the most versatile – UGMA or UTMA accounts are two similar types of general-purpose custodial investment accounts. With these, the custodian opens and manages the account until the child reaches the age of majority. Once the child becomes an adult, they gain full access to the account and can use the money for any purpose.
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Is SIP good for child education?

Why SIPs for child education? –

For a sizeable corpus that you will require for your child’s education, the recurring nature of SIPs help establish a discipline in saving and investing regularly. SIPs ensure that you invest a fixed amount regularly. This means you buy more when the price is low and buy less when the price is high. Eventually you benefit from a lower cost of investing. SIPs are simple and largely automatic. You can set an electronic clearing service (ECS) mandate on your bank account for a SIP. While SIPs allow you to start with an amount as small as Rs.500 every month, they also allow you to increase the investment every year as you increase your savings. This is done through a SIP Top-up facility. With SIPs you don’t need to time the market. You can benefit from the power of compounding. All you need to do is invest regularly and choose to reinvest the returns.

Even if Ruksana invests Rs.2,000 a month in a scheme that offers 12 per cent returns, from the time her child was born till she turns 18 years and tops up her annual contributions by 10% every year, her total investment of Rs.11.05 lakhs would grow to Rs.27.3 lakhs.
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Can I start an investment fund for my child?

Investing for Kids: How to Open a Brokerage Account for Your Child – NerdWallet Investing isn’t just for adults: If you want to teach your kids some valuable lessons about money and the power of investment growth, helping them open a custodial brokerage account can be a great start.

One of the biggest keys to successful investing is a long time horizon for your money to grow — and kids have a lot of time on their side. If they’re willing to let their money remain invested for several years, they’re likely to see a nice return on their initial investment. Seeing their money grow can encourage them to be good savers and investors as adults.

Here are some things to consider about investing for kids, including which investments are best and how to select and set up your child’s first brokerage account. Brokerage accounts for children are often referred to as custodial accounts. They’re labeled as UGMA/UTMA accounts depending on the type of account restrictions.

• If your child has taxable income or wages: If your children are older and have earned income from a part-time job, such as babysitting, raking leaves, or something similar, you can help them open a custodial IRA. A Roth IRA in particular is ideal for children: The contributions your child makes to the account will grow tax-free. Those contributions can be pulled out at any time, and the investment growth portion can be used for retirement, or tapped for special purposes such as a first-home purchase or higher education expenses. (Here’s a full run-down on,)

Brokerages are also creating new account types geared specifically for teens., for example, offers a Youth Account, which lets teens aged 13 to 17 control the account, but lets parents monitor its activity, trades and transactions, complete with alerts. This is a new type of youth investment account separate from the custodial accounts outlined above.

NerdWallet rating NerdWallet’s ratings are determined by our editorial team. The scoring formula for online brokers and robo-advisors takes into account over 15 factors, including account fees and minimums, investment choices, customer support and mobile app capabilities.	NerdWallet rating NerdWallet’s ratings are determined by our editorial team. The scoring formula for online brokers and robo-advisors takes into account over 15 factors, including account fees and minimums, investment choices, customer support and mobile app capabilities.	NerdWallet rating NerdWallet’s ratings are determined by our editorial team. The scoring formula for online brokers and robo-advisors takes into account over 15 factors, including account fees and minimums, investment choices, customer support and mobile app capabilities.
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No matter which type of brokerage account you decide to open for your kids, you’ll need to start by finding a broker that offers custodial accounts. The best investment accounts for kids charge no account fees, and have no minimum initial deposit. This gives your kids the chance to start investing with a small amount of money.

Consider, too, the costs associated with the investments your child plans to choose. For example, for kids who want to practice trading stocks, you should ensure the broker charges low or no trade commissions. If your kids just want their money to grow in a hands-off way, consider looking for brokers with a large selection of low-cost index funds.

If you’re looking for a brokerage account to teach your kids about investing, know that many brokers offer educational content, including online investing tutorials and even practice trading accounts. You can open a custodial account — both a standard brokerage account and a Roth IRA — for your child in under 15 minutes or so.

• At most brokers, the entire process is completed online.
• To speed things up, make sure you have the necessary information ready.
• The broker will likely ask for both your and your child’s Social Security number, as well as dates of birth and contact information.
• You’ll probably have to supply your employment information, and you should be ready to link another bank or brokerage account so you can transfer money to fund the new account.

Once the custodial account is open and funded, the real fun begins: Investing the money. Within their brokerage account, your kids will be able to invest in individual stocks, as well as mutual funds, index funds and exchange-traded funds. To get your kids excited about investing, we’d encourage a two-pronged approach: 1.

1. Help them pick one or two individual stocks.
2. Focus on household names they’re familiar with — owning even one share of a brand kids recognize will get them excited about investing.
3. » Learn more: 2.
4. Build the rest of the portfolio with index funds.
5. As your child continues to add money to the investment account, consider skipping additional shares of individual stocks, and instead focus on or ETFs.

These funds bring much-needed diversification to the portfolio, by pooling hundreds of stocks together into one investment. That way, your child can invest in a lot of different companies in one transaction for one price. Once they’ve selected and purchased their investments, make a habit of checking their earnings and losses every few weeks and comparing the small fluctuations with the larger long-term changes shown on their quarterly statements.

This can spark discussion and inspire kids to become more informed investors. If your teen is asking about investing, a custodial account is still going to be your best place to start. The age requirement to open a brokerage account with the most popular investment apps is 18 (and sometimes older, depending on the state.) So until then, you have the final say in how they invest, and where.

However, some of the investment apps that are most popular with younger generations (such as and ) don’t offer custodial accounts. So you’ll want to do your research alongside your teen, explaining that if they want to start investing before the age of 18, they’ll have to do it through,

Once they’re of age, they can decide if they want to continue with the same brokerage service, or open their own. This can also be a time to explain the for various purposes. Frequently asked questions How old does my child have to be to buy stocks? To start investing in stocks on their own, your kid will need a brokerage account, and they must be at least 18 years old to open one.

They can start earlier than this, but they’ll need a parent or guardian to open a for them. What is a custodial account? A custodial account is a type of investment account that’s managed by a parent or guardian who opens it for a minor before the age of 18 (or 21, depending on the state.) Once the child turns the age of majority, the parent or guardian loses the ability to manage the account.

Can you withdraw money from a custodial account? If you’re withdrawing money from the custodial account, it must be used for the benefit of the minor — no raiding the account to pay for your own expenses. Also, contributing to the custodial account is a one-way street; you can’t take back any assets held in the custodial account once you’ve given them to the minor.

The account and its assets belong to the child in every way, even if you’re the one managing it. Who pays taxes on a custodial account? Considering the account belongs to the minor, technically, they’re the minor’s taxes to pay. However, in general, the first $1,100 of unearned income (such as dividends, interest or earnings from the account) is tax-free.

• After that, the next $1,100 of unearned income is taxed at the child’s rate.
• Once the minor’s unearned income rises above $2,200, it will be taxed at the parents’ tax rate.
• How old does my child have to be to buy stocks? To start investing in stocks on their own, your kid will need a brokerage account, and they must be at least 18 years old to open one.

They can start earlier than this, but they’ll need a parent or guardian to open a for them. What is a custodial account? A custodial account is a type of investment account that’s managed by a parent or guardian who opens it for a minor before the age of 18 (or 21, depending on the state.) Once the child turns the age of majority, the parent or guardian loses the ability to manage the account.

• Can you withdraw money from a custodial account? If you’re withdrawing money from the custodial account, it must be used for the benefit of the minor — no raiding the account to pay for your own expenses.
• Also, contributing to the custodial account is a one-way street; you can’t take back any assets held in the custodial account once you’ve given them to the minor.

The account and its assets belong to the child in every way, even if you’re the one managing it. Who pays taxes on a custodial account? Considering the account belongs to the minor, technically, they’re the minor’s taxes to pay. However, in general, the first $1,100 of unearned income (such as dividends, interest or earnings from the account) is tax-free.
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Can you start a 401k for your child?

The How-Tos And Benefits Of A Minor Participating In 401(k)s The has become the go-to retirement plan for many Americans and continues to gain traction. The flexibility, tax savings and scale of 401(k) plans have made it attractive to employers and employees alike.

But A 401(k) plan doesn’t need to be just for large corporations. It can be used to help owners save for their future in a tax-advantaged way and allow minor children to participate. You read that correctly – even your minor children could participate in a 401(k). How can a minor save for retirement in a 401(k)? The long answer is complex, as is the case with many things in the tax and legal world of retirement plans.

Ultimately, there is no too-young age restriction under Internal Revenue Code section 401(a), which sets the requirements for a tax-qualified plan, or under the Employee Retirement Income Security Act (ERISA) of 1974. However, other constraints like plan design, income limits and testing rules could make it impractical or impossible for a minor to participate in a 401(k).

A common misunderstanding with 401(k)s is that there’s a minimum age of 21. The minimum-participation rules state that a plan must not impose a minimum age condition beyond 21. But nothing in federal law precludes setting a plan’s minimum age at a younger age. These choices are ultimately up to the plan’s sponsor.

So what does this all mean with regard to minors? Plans don’t have to allow someone under age 21 to participate. The minimum participation rules don’t prohibit when someone can join, but rather sets a minimum requirement for when a plan must let someone participate.

1. Federal law doesn’t set a required minimum age you must reach in order to participate in a 401(k).
2. However, many plans put an age condition in the plan document.
3. An on 401(k)s found that 64% of reviewed plans had a minimum participation age of 21.
4. Another 4% of plans had a minimum age of 19 or 20; 13% set the age at age 18; and roughly 20% had no minimum age requirement at all.

This means that roughly 80%of plans don’t allow minors to participate by setting a minimum age requirement at age 18 or higher. However, that leaves about 20% or roughly one out of every five plans open to allowing minors to participate. Now, there is concern about state laws regarding minors.

1. In most states, the age of competence is 18.
2. I have seen some arguments that minors can’t enter into a contract to defer or participate in a 401(k).
3. This misstates the common law about contracting under the age of majority.
4. Upon reaching the state’s age of competence, individuals can disaffirm or get out of the contract.

However, ERISA section 514(a) preempts state laws that relate to an employee benefit plan, and might supersede a state law that otherwise could allow a participant to disaffirm an election made under an ERISA-governed employee benefit plan. Or, a cautious employer and plan administrator might ask that a minor’s conservator or guardian (often, a parent as a natural guardian) approve the minor’s acts.

• Usually, this isn’t a practical problem.
• Retirement plans lawyer Peter Gulia, the shareholder of Fiduciary Guidance Counsel, explains why.
• Not many big-business employers have more than a few employees younger than 18 without excluding them through an age, service, or other condition.
• But many small-business employers write a plan with no minimum age, so business owners’ children not only can earn wages but also get retirement benefits,” Guila told me.

“If mom’s business gives her son a paycheck, a tax-favored savings opportunity, and a matching contribution, how likely is it that a first-year college kid will disaffirm his teenage years’ 401(k) contributions? And if he did, mom could get back her matching contributions and the investment gains on them.” So, while a state’s law of contracts could still be of some concern, it need not practically preclude a minor from participating in a 401(k) plan.

There is still one more point to consider. The minor has to be employed and receive reasonable compensation for the services they provide to the employer. Some states do limit jobs a minor can have. Clerical or farming work for a child’s parent is usually acceptable. Another strategy people employ is paying their children for modeling services and using their photographs on websites and other marketing materials.

Obviously, this would still require reasonable compensation. A business owner might check with a lawyer and CPA to ensure it’s done right. Minors wouldn’t be excluded from annual 401(k) testing requirements like contribution limits and salary-deferral limits.

There are instances where adding a minor child of the plan owner could present complications for the plan, depending on how the plan is set up, its goals and who the other participants in the plan are. For instance, a minor participant can only have a salary deferral up to $19,500 in 2021, and the total amount that goes into the participant’s account per year cannot exceed 100% of the participant’s compensation or $58,000 for anyone under age 50 in 2021.

So, if a minor is earning $15,000 a year and wants to defer the whole amount, they could, but they couldn’t receive any other real matching contributions. Additionally, employers can have limits on how much they can contribute and deduct into a plan per year, typically up to 25% of compensation paid.

When would it make sense to let a minor participate in a 401(k)? For family-owned firms, it can be a smart strategy to allow their minor children who work in the business to participate in a 401(k). It could allow the minor to defer his or her salary into the 401(k) and allow the employer to also contribute to the minor’s account through a match or non-elective provision.

It might also be wise to consider allowing Roth savings inside the 401(k). The child’s tax rate could be extremely low, allowing him or her to save in an after-tax fashion with valuable long-term tax and investment benefits. If allowing a minor to participate in a family-dominated 401(k) seems like too much complexity, effort, risk or cost, you can still allow them to work in the family business, generate earned income and fund a traditional or Roth IRA.

1. This minor IRA strategy is much more established and pervasive in the financial planning world.
2. In fact, many large custodians provide options for parents, grandparents, or any adult to set up an account for a minor child who has earned income.
3. The adult can manage the account until the child reaches the required age in which the account must be turned over to the child.

(Again the age varies by state.) Getting your children into a retirement account at such an early age sets them up for long-term savings, investing, and retirement planning success. : The How-Tos And Benefits Of A Minor Participating In 401(k)s
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Should I start an IRA for my child?

Why Your Kid Needs a Roth IRA A Roth IRA isn’t typically considered a savings vehicle for kids, but it should be. Roth IRAs are ideal for kids, because children have decades for their contributions to grow tax-free. And these accounts offer flexibility, too: Contributions to a can be withdrawn tax- and penalty-free at any time.

• There are no age restrictions. Kids of any age can contribute to a Roth IRA, as long as they have earned income.
• A parent or other adult will need to open the custodial Roth IRA for the child. Not all online brokerage firms or banks offer custodial IRAs, but and both do.
• A Roth IRA is more flexible than other retirement accounts because contributions can be withdrawn at any time.

» Check out our top picks for the (as noted above, many providers don’t offer custodial Roth accounts)

NerdWallet rating NerdWallet’s ratings are determined by our editorial team. The scoring formula for online brokers and robo-advisors takes into account over 15 factors, including account fees and minimums, investment choices, customer support and mobile app capabilities.	NerdWallet rating NerdWallet’s ratings are determined by our editorial team. The scoring formula for online brokers and robo-advisors takes into account over 15 factors, including account fees and minimums, investment choices, customer support and mobile app capabilities.	NerdWallet rating NerdWallet’s ratings are determined by our editorial team. The scoring formula for online brokers and robo-advisors takes into account over 15 factors, including account fees and minimums, investment choices, customer support and mobile app capabilities.
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There’s no age limit. Even the Gerber baby can contribute to a Roth IRA: The hurdle to opening this account is about income, not age. The child must have earned income. If a kid has earned income, he or she can contribute to a Roth IRA. Earned income is defined by the IRS as taxable income and wages — money earned from a W-2 job, or from self-employment gigs like baby-sitting or dog walking.

• If you want to contribute to your child’s Roth IRA or match your child’s contributions, that’s fine as long as she has at least as much earned income as the total contribution amount.) There are contribution limits.
• The is $6,000 in 2022 ($7,000 if age 50 or older) and $6,500 in 2023 ($7,500 if age 50 and older), or the total of earned income for the year, whichever is less.

If a child earns $2,000 baby-sitting, he or she can contribute up to $2,000 to a Roth IRA. » Read more about Your child’s income is what makes him eligible for the Roth IRA, but a parent or other adult will have to help open the account. Roth IRA providers typically require an adult to open and manage a custodial Roth IRA on behalf of a minor.

1. The process is simple and should only take about 15 minutes — you’ll need to provide Social Security numbers for you and your child, birthdates and other personal information.
2. Now that you know whether your kids can have a, you might be wondering if they should.
3. Aside from the momentum of investing early, there are several reasons why a Roth IRA in particular can be a good choice for children: Retirement accounts are known sticklers about distributions; many charge a 10% penalty on money taken out before age 59½.

That’s tough on kids, who aren’t exactly known for their ability to delay gratification. But a Roth IRA is different. The money contributed to the account can be withdrawn at any time and used for anything from a Matchbox car to a first real car. That flexibility is balanced by stricter rules for the Roth IRA account’s earnings, or the return on contributions that are invested.

Distributions of investment earnings may be taxed as income, penalized with a 10% early distribution tax or both. Those two rules make the Roth IRA a nice middle ground between kids who want easy access to their cash and parents who want to make sure some of that cash is saved for the future. » Get the full details on There’s a fun phenomenon called compound interest that works like this: Given time, invested money earns more money.

Most of us have 30 or 40 years until retirement once we start investing; a kid who starts earlier has the benefit of much more. If your kids leave their money in the Roth IRA until retirement, they could be looking at 50 or more years of investment growth, completely tax-free.

Is waiting that long a hard sell? Maybe mention that a one-time contribution of $6,000 in a Roth IRA – with no additional contributions at all – would grow to about $200,000 in 60 years (assuming a 6% investment return and monthly compounding). That type of growth wouldn’t happen in a plain savings account, which is the more traditional choice for kids because it’s flexible and doesn’t require earned income.

Unlike in a Roth IRA, birthday money is welcome. But a Roth IRA allows your kids to pick and choose investments, which, over the long term, can lead to the kind of growth described above. Savings accounts instead pay a relatively flat interest rate that currently hovers around 0.09%.

That’s a far cry — and many thousands of dollars — from the 6% or more you can expect to earn annually from a long-term investment. Even at a 1% interest rate — paid by many online savings accounts today — a one-time deposit of $6,000 won’t even double after 60 years. There are trade-offs, of course: Most notably, your kids could lose the money they invest in a Roth IRA, though history tells us that’s unlikely to happen if they stick to a diversified portfolio over a long period of time.

The Roth IRA works like this: Because there’s no tax break for putting money into the account, qualified distributions in retirement are not taxed. All that growth we keep talking about is earned completely tax-free if your kid follows the rules for distributions.

The Roth’s tax treatment is especially valuable when your time horizon is long and your current tax rate is low, and both of those are true for children. In fact, the earnings of most kids are so low that they pay little to no income taxes, meaning they avoid taxes on contributions, too. Yes, a Roth IRA is a retirement account.

The ideal goal is to sit on the account and allow it to accumulate a nice pot of cash over time. But it’s worth pointing out that a Roth IRA isn’t just a retirement account. Again, contributions can be pulled out any time, for any reason. But there are also a couple of loopholes that can get your kid access to the investment earnings before age 59½.

• After the Roth IRA has been funded for five years, your child can take out up to $10,000 in earnings to buy a first home, tax- and penalty-free.
• Roth IRA earnings can be used for qualified education expenses, like college tuition. Earnings distributed will be taxed as income, but there will be no penalty.

: Why Your Kid Needs a Roth IRA
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Can you open an IRA for your child?

Key Takeaways Any child, regardless of age, can contribute to an IRA provided they have earned income ; others can contribute too, as long as they don’t exceed the amount of the child’s earned income. A child’s IRA has to be set up as a custodial account by a parent or other adult.
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What is childrens gift fund?

Children’s Gift Funds are mutual fund schemes that offer returns that would offer financial advantages to your children for needs such as meeting marriage expenses, future educational needs, etc. This creates long term capital appreciation and would fall under the category of Hybrid Funds or Balanced Mutual Funds.
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Which policy is best for child?

Best Child Insurance Plans in India – Here is the list of best child insurance plans

AEGON Life Rising Star Insurance Plan Aviva Young Scholar Advantage Plan (Child Education Plan) Bajaj Allianz Young Assure Bharti AXA Life Child Advantage Plan Birla Sun Life Insurance Vision Star Plus Edelweiss Tokio Life Edu Save Plan Exide Life Mera Aashirvad Plan Future Generali Assured Education Plan (Child Education Plan) HDFC SL YoungStar Super Premium ICICI Pru Smart kid Assure plan IndiaFirst Happy India Plan Kotak Head Start Child Assure Plan Max Life Shiksha Life Super MetLife College Plan (Child Education Plan) Pramerica Future Idols Gold Reliance Life Child Plan Sahara Ankur Child Plan Wealthsurance Future Star Insurance Plan SBI Life Smart Champ Insurance Plan SBI Life Smart Scholar (Child Education Plan) Smart Future Income Plan Shriram New Shrividya Plan SUD Life Bright Child Plan TATA AIA Super Insurance Plan

Child Plans	Entry Age	Maximum Maturity Age	Minimum Annual Premium	Minimum Sum assured
AEGON Life Rising Star Insurance Plan	18-48 years	65 years	Rs.20,000/-	10 X regular Annualized premium
Aviva Young Scholar Advantage Plan (Child Education Plan)	21-45 years	60 years	Rs.50,000/-	10 X annual premium
Bajaj Allianz Young Assure	18-50 years	60 years	N/A	10 X Annualized premium
Bharti AXA Life Child Advantage Plan	18-55 years	76 years	Depends on Minimum Sum Assured	Rs.25,000/-
Birla Sun Life Insurance Vision Star Plus	18-55years	75 years	N/A	Rs.1 Lakh
Edelweiss Tokio Life Edu Save Plan	18-45 years	60 years	Rs.6,968/-	Rs.2.25 Lakh
Exide Life Mera Aashirvad Plan	21-50 years	65 years	N/A	Rs.3.5 Lakh
Future Generali Assured Education Plan (Child Education Plan)	21-50 years	67 years	Rs.20,000/-	N/A
HDFC SL YoungStar Super Premium	18-65 years	75 years	Rs.15,000/-	10 X annualized premium
ICICI Pru Smart kid Assure plan	20-54 years	64 years	Rs.48,000/-	Rs.45,000/-
IndiaFirst Happy India Plan	18-50 years	60 years	Rs.12,000/-	Higher of 10 or 7 times the annual premium or 0.5/0.25*term*annual premium
Kotak Head Start Child Assure Plan	18-60 years	70 years	Regular pay – Rs.20, 000 5 Pay – Rs.50, 000 10 Pay – Rs.20, 000	Higher of 10 or 7 times the annual premium or 0.5/0.25*term*annual premium
Max Life Shiksha Life Super	21-50 years	65 years	Rs.25000/-	Rs.2.5 Lakh
MetLife College Plan (Child Education Plan)	20-45 years	69 years	Rs.18,000/-	Rs.2,12,040
Pramerica Future Idols Gold	18-50 years	65 years	Rs.10, 800/-	Rs.1.5 Lakh
Reliance Life Child Plan	20-60 years	70 years	Rs.25,000/-	Equal to Policy
Sahara Ankur Child Plan	0-13 years	40 years	Single-Premium- Rs.30,000/-	5 X Single Premium Paid
Wealthsurance Future Star Insurance Plan	18-54 years	64 years	Rs.25,000/-	Higher of 10/7 times the annual premium or 0.5/0.25*term*annual premium
SBI Life Smart Champ Insurance Plan	21-50 years	70 years	Rs.6,000/-	Rs.1 Lakh
SBI Life Smart Scholar (Child Education Plan)	18-57 years	65 Years	Rs.24,000/-	20/7 X annual premium (regular pay) 1.25 times single premium (single pay)
Smart Future Income Plan	18-55 years	80 years	N/A	100 times the chosen monthly income
Shriram New Shrividya Plan	18-50 years	70 years	N/A	Rs.1 Lakh
SUD Life Bright Child Plan	19-45 years	69 years	Rs.5,00,000/-	Depending upon factors such as age, coverage, and tenure
TATA AIA Super Insurance Plan	25-50 years	70 years	Rs.24,000/-	10 times of the yearly premium

Disclaimer: Policybazaar does not rate, endorse or recommend any specific insurance provider or insurance product offered by any insurer.
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What is HDFC children’s plan?

HDFC Life Youngstar Udaan A traditional money back plan with customizable payout options for your child’s various life goals.3 payout options designed to suit your child’s various goals in life. Get a lump sum payout of up to 140% of sum assured and additional bonuses (if declared) on maturity.
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What is LIC child money back plan?

LIC’s New Children’s Money Back Plan is a Non-linked,Participating, Individual, Life Assurance money back plan. This plan is specially designed to meet the educational, marriage and other needs of growing children through Survival Benefits.
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How can I save money for education?

Three Ways To Save Rs 70-80 Lakh For Your Child’s Higher Education

Saving up for the higher education needs of their child, is undoubtedly, an important task for many parents. Planning for higher education means carefully allocating money for this purpose over several years, at least 7-8 years, taking into account rising inflation, the course in mind, the university, the city – local or foreign, living expenses, and numerous other expenses. This entire process could throw your financial life into a tizzy, if not planned ahead properly. Here are three ways in which you could save around Rs 70-80 lakh in the coming decade for your child’s higher education studies.

Try to start investing early: There is a popular saying: “It is best to start investing earlier in small increments rather than invest big sums at a later date.” The typical age for higher studies or foreign studies in India is once the child turns 18.

1. Suppose your child is 10 years old now, you still have 7-8 years to save the money.
2. You can use this period to invest in instruments that yield better returns, i.e., equity instruments such as stocks, mutual funds, and so on.
3. You can invest in a way that your investment matures when your child turns 18.

Investing early will provide you the benefit of compounding as well,” says Anup Bansal, chief investment officer, Scripbox, a wealth management firm. You can build the corpus in three ways.1. Keep a lump sum aside so that the money grows to the required corpus.

Assuming 10 per cent annualised return, you would need around Rs 37 lakh to grow it to Rs 80 lakh in eight years 2. Invest a fixed amount regularly to generate the corpus. You would need to invest around Rs 60,000 every month for the next eight years to grow it to Rs 80 lakh, if the annualised return is 10 per cent per annum.3.

Start with a smaller lump sum and invest regularly. The regular investment amount will depend on the initial lump sum. For example, if you start with a lump sum of Rs 10 lakh, then you would need to invest around Rs 43,000 every month to grow it to Rs 80 lakh in eight years. Choose suitable investment options : Where you invest your money is crucial in achieving the financial goals for your child’s future. “You need to consider the rising inflation levels before investing. Equity investments yield better against inflation compared to fixed income tools, such as a bank fixed deposit (FD) or savings account.

The average return for equity instruments is around 12 per cent, while for a bank FD, it is merely around 5-6 per cent,” says Bansal. The key is to create a risk-adjusted portfolio, and for that, diversification is the key. It is better to consult a portfolio advisor or manager to identify the exact investment match for your child’s higher education needs.

“It is ideal to invest in diversified equity funds, where the time horizon is of 7-8 years. You need to invest approximately Rs 55,000 per month for the coming eight years to reach the goal of Rs 80 lakh, considering a 10 per cent per annum return. Equity has the potential to generate better returns than any other asset classes for the time horizon of the goal,” says Harshad Chetanwala, co-founder, MyWealthGrowth.com, an online mutual fund investment platform. When compared to fixed income instruments like a bank fixed deposit (FD) or a savings account, equity investments outperform inflation. Investment in debt funds : If someone wants to build the corpus using debt investment, they can consider investing in debt funds, like banking and PSU debt funds, corporate bond funds, and dynamic bond funds.
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Which education plan is best?

Best Child Plans In India

Insurance Company	Plan Name	Maximum Sum Assured
SBI Life Insurance	Smart Champ Insurance	Rs.1,00,00,000
ICICI Prudential	Smart Kid Solution	10 times of Single Premium
Max Life Insurance	Future Genius Education Plan	No limit

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Is a 529 plan good for kids?

Key Takeaways –

• The cost of college keeps rising, so it’s wise for parents and grandparents to start savings plans when kids/grandkids are young.
• A 529 plan is one of the best tax-advantaged ways to save for higher education.
• Traditional and Roth IRAs can be used to pay for college expenses, but parents should be sure their retirement needs are covered.

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Is 529 or I bond better for education?

A Solution for College – Despite being a supplement to 401(k)s and IRAs, I bonds have an added benefit. They can be used as a college savings tool as well. That’s because I bonds qualify for the government’s Education Savings Bond Program. Here, I bonds offer some tax breaks for education expenses and could possibly help cover college costs in a tax-free manner.

• When a parent sells an I bond, all funds – both interest and initial principal – must be used toward higher education payments for the owner, his or her spouse, or a dependent.
• Those payments can be used for tuition, lab and course fees, and degree-required courses.
• Unfortunately, room and board, books, sports and recreational activities do not count as qualified expenses when it comes to I bonds.

As long as the total proceeds from the bond sale are less than the amount of eligible expenses, savers can skip paying taxes on the accrued interest. Those tax benefits start to phase out for single taxpayers with an adjusted gross income of $93,150 or above, while for married taxpayers the adjusted gross income clocks in at $147,250.

1. Moreover, if the bond sale exceeds the higher education expenses, the amount of tax-exempt interest is prorated and savers will need to pay some taxes no matter what their gross income is.
2. The Treasury Department provides this example on how it works.
3. If you sell an I bond for $10,000 – i.e.
4. 5,000 principal and $5,000 interest – and the qualified educational expenses are $8,000 then the taxpayer would only be able to get an interest exclusion for 80% of the interest earned.

In this case, only about $4,000. You’d still owe taxes on the remaining portion. Thanks to their tax deferral and potential tax-free status, I bonds can work well in concert with a 529 plan. You can use the proceeds from I bonds to cover tuition, while a 529 plan provides a bit more flexibility when it comes to other college expenses such as room/board and required technology.
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Is a 529 plan better than an investment account?

Start saving for college with a 529 or brokerage account today! – There are pros and cons to both 529 plans and brokerage accounts. A 529 has better tax advantages when used for college education while brokerage accounts have more flexibility when it comes to using it for multiple purposes. : Blog: Is a 529 or a Brokerage Account Better for College Savings?
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