Setting Up Education Fund Using Savings Plan for Grandchildren
Close
Close

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term Plan

Protect Your family’s financial future with Kotak e-Term Plan. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and insurance in one premium. Know more

Kotak e-Invest

Insurance and investment in one plan with Kotak e-Invest. Know more

Kotak Health Shield

Insurance against medical expenses related to heart, brain, liver and Cancer. Know more

Savings Plan for Grandchildren

Savings Plan for Grandchildren
  • 5th Jul 2022 |
  • 2,872

Children are the most loved ones in a family. Especially when they are your grandchildren, you have extra affection for them. Many of us want to add up to the education funds for grandchildren to support them in their future and to ensure that they get the best education and are financially strong enough to have access to any resource to support them in their life ahead.

Yes, traditional options like gifting gold or cash can be one of the way to support them, but did you ever think of a savings plan for grandchildren? As modern society is continuously evolving, so are its requirements and expenses. If you are planning to set up an education fund for grandchildren, then making an informed decision is your best bet. In this article today, we will tell you all about a savings plan for grandchildren, the importance of opting for one, and the best savings plan for grandchildren. Plus, we will also help you understand how to opt for tax-free savings for grandchildren.

Savings for Grandchildren While Investing in Your Name?

As a grandparent, you can start an investment in a savings plan for yourself while making your grandchild, a minor, a nominee of the policy. The nominee can claim the policy’s benefits upon the demise of the grandparent once they are an adult.

In case of a minor nominee, you should mention details of the minor’s parent and the customer KYC of the investing grandparent.

What is a Savings Plan for Grandchildren?

These plans are designed to offer the option to the grandparent to contribute to their grandchildren’s financial stability and security. In addition, these plans are designed to support the grandchild at any point in their life whenever required.

Most importantly, upon the demise of the grandparent, these plans can serve as a pillar of support contributing towards the requirement related to your grandchild’s education, health, and social expenses. This will also help minimize the financial burden of your grandchildren as they foray further in life towards higher education and gradually into their professional life. Thus, it is highly recommended to opt for a savings plan for grandchildren.

What is the Importance of Saving Schemes for Grandchildren?

Here are some pointers to highlight the importance of saving schemes for grandchildren:

  • Provides you with an option to secure your grandchildren’s financial future until they can manage their own life
  • Offers additional support for the grandchildren up and above the help of their parents
  • Serves as an added resource in supporting grandchildren’s educational requirements
  • Can be very useful as a health fund for the grandchild
  • Comes with added benefits provided by the government and insurance company for your grandchild

Best Savings Plan for Grandchildren in India

As you are planning to invest in your grandchildren and it concerns their future, it is essential to do your research and understand what the market offers so you can make an informed decision. Finding the right savings plan for grandchildren can be a tough call, as numerous policies are available in the market. However, only you can assess the future requirement of your grandchild and decide on a financial goal for him accordingly.

Here are some of the best options that you must consider as a potential savings plan for grandchildren:

ULIPs for Child

ULIP is one of today’s most popular and modern investment tools that offer you the benefit of both insurance and investment in one policy. Child ULIP policies have additional benefits too, and in case of an unfortunate demise of the policyholder, the said child is liable to receive a lump sum payout or regular payouts.

Systematic Investment Plan (SIPs)

The best way to ensure that your investment has matched the inflation in the long term and has grown with the market. This is the reason why SIPs are considered the best education funds for grandchildren. They allow you to invest in a diversified market portfolio managed by experts and give you a decent return in the long term.

Public Provident Fund (PPF)

This is the safest and most secure financial tool you can opt for as tax-free savings for grandchildren. Being a traditional and government-backed financial product, PPFs are quite popular and reliable. A PPF account for a child can be only opened by the guardians and nominee addition is mandatory here. Additionally, a minimum of ₹500 and a maximum of ₹1.5 lakhs can be deposited in this account annually, wherein, payments can be made as per your convenience.

Sukanya Samriddhi Yojana

If you are looking to invest in a savings scheme for a girl-grandchild, Sukanya Samriddhi Yojana is a great pick. It is a government-backed savings scheme dedicated to the girls. It has numerous benefits linked to it. This account allows a minimum deposit of ₹250 and a maximum of ₹1.5 lakhs every financial year. Furthermore, the deposits are eligible for deductions under Section 80C of the Income Tax Act.TThere are many other investment options available for grandchildren. However, opting for a good one depends on your ability to assess the futuristic requirements of your grandchild. Therefore, it is advised to go through the policy documents thoroughly and read all the terms and clauses before option for a savings plan for grandchildren.

Kotak e-Invest

In this policy, the investment risk in the investment portfolio is borne by the policyholder.

Download Brochure

Features

  • Return of Mortality Charges*$
  • Enhanced Protection
  • Multiple Plan Options
  • Zero Premium Allocation Charges
  • Tax Savings^

Ref. No. KLI/22-23/E-BB/521

T&C

Browse our library of resources

- A Consumer Education Initiative series by Kotak Life

Similar Articles

ULIP Plan as a Gift

What are the Best Investment Options for Beginners or Amateur Investors in India?

ULIP vs FD - Which is Better and Why?

How Can a Legal Nominee Claim ULIP Benefits are the Policyholder’s Death?

What are the Best Investment Options For Females?

Things to Know Before Buying an Endowment Plan

How Does an Endowment Plan Work?

Are Money Back Policies Helpful? A Complete Guide

Why is Portfolio Diversification Important? How to Diversify Your Portfolio?

What are Tax-Deferred Savings Plans?

Asset Allocations in ULIP - Know the Top Benefits

What are Some of the Safest Investment Options in India?

उच्च रिटर्न प्राप्त करने के लिए सर्वश्रेष्ठ इन्वेस्टमेंट विकल्प

Top 10 Investment Strategies to Create Wealth

How is the Compound Annual Growth Rate (CAGR) Calculated in ULIP?

Why ULIP is Better Investment for Long-Term Wealth Creation?

How To Diversify Portfolio In 2022?

Difference Between Guaranteed Savings Plan and Guaranteed Income Plan

Top 5 Principles That Need to be Followed for Wealth Creation

Investment Options for NRIs in India

How To Invest Money In ULIP?

What are Deferred Savings Plans?

Best Investment Options in India in 2022

Factors Affecting Stock Markets

Difference Between Passive and Active Investing

Difference Between Guaranteed Savings Plan and ULIP

Short Term and Long Term ULIP Plans for Wealth Creation

Safe Investment Options with High Returns for FY 2018-19

Complete Savings Plan for Low Income Earners

How Do One-Time Investment Plans Work?

Best One-Time Investment Plans in India

What are the Best Short-Term Investment Plans with High Returns?

How to Cancel ULIP Policy?

Benefits of ULIP as a Child Insurance Plan

Different Types of Endowment Plans

How to Plan your Investment to Achieve Periodic Financial Goals?

Why Should You Invest in Term Insurance And ULIP?

Learn About Safe Investments with High Returns in India

What are the Best Investment Options for Young Adults?

How to Plan Your Child's Education - A Step-by-Step Guide

Investments Options to Buy a house in India

Receiving regular payouts at various stages of life

Importance of Portfolio Management

How To Track ULIP Performance?

How to Manage Inheritance Money?

Why Do You Need A ULIP Plan - All You Need To Know

Beginner's Guide to Wealth Creation: Meaning, Strategies, & Importance

Basics of Guaranteed Savings Plan

Why Should You Consider Guaranteed Savings Plan for Long-Term Investment?

Debt ULIPs vs. Debt Mutual Funds: What's the Difference?

ULIP Investment Strategy: Top Tips to Improve Your ULIP Gains

Learn About Safe Investments with High Returns in India

Can ULIP Help in Achieving Short-Term Financial Goals?

How to Increase Net Worth Along with Family Protection

ULIP Benefits You Can Avail from Early Investing

Top 5 Investment Options in 2022 for Healthy Returns

4 Benefits of ULIP Fund-Switching Feature

How to Plan Savings from Salary?

How to Fulfil Your Financial Goals in the Next 10 Years?

Early Investing and the Power of Compounding

Long Term Savings Plan - Best Savings Investment Plans in India

ULIP as an Investment for Your Child

What is better - Guaranteed Savings Plan or Fixed Deposit?

Top 6 Investment Plans Available in India

Why Should Parents Invest in Endowment Plan?

4 Important Tips to Maximize Gains with ULIP Investments

How Much Wealth Can You Create from ULIP in 10 years?

Successful Financial Planning for Urban Women

What are the Best Investment Options for Students in India?

Important Questions You Must Ask Yourself When Buying a ULIP Plan

What's Better for Your Child's Education? Child Plans or Mutual Funds?

Endowment Plan vs Fixed Deposit?

Planning Financial Goals and Objectives of Financial Planning

What is the Importance of Saving Money?

What is Fund Switch in ULIP? And ULIP Fund Switching Techniques

Which is a Better Investment - Mutual Funds Or ULIP?

Is This The Right Time To Invest In ULIP? Why or Why Not?

Are Gains from ULIP Sale Taxable?

Which is Better – FD, Mutual Fund, SIP, or ULIP?

Which are the Best Investment Plans for Indian Senior Citizens in 2022?

What is a Savings Plan and What are is Benefits?

3 Tips to Buy Guaranteed Savings Plan

Creating a second source of income with life insurance

Customising investments to manage your wealth

Planning for Your Child's Higher Education? Explore These Investment Options

Building wealth through regular investing

How to Start Saving Money in 10 Simple Ways?

What is ULIP Renewal?

Savings vs Investment: Know the Difference

What are Mutual Funds?

Best Investment Options to Cover Your Child's Education

How to Manage Your Portfolio Like a Professional?

How to Make Your Financial Portfolio?