Bank Account for Kid

[Darthvader]

I want to open a bank account for my sister's baby boy (10 months old), Please suggest me which banks provide option to keep maximum balance of 50L .

SBI limits at 10lakh, also planning to open PPF account in name of baby. Please suggest

 

[CC-Muncher]

Can you explain this ? sounds like a logical reason not to invest in SSY

Post in thread 'Bank Account for Kid' https://www.technofino.in/community/threads/bank-account-for-kid.10580/post-261860

MF can easily beat it anythime.
Even gold in that case, digital or physical whatever suits you

 

[Ankur dhanda]

if you yourself invest in your own PPF, and you open a child’s PPF account you can invest 1.5L total in those accounts combined. You can’t put in 1.5L in yours and 1.5L in baby’s PPF as it’ll be under guardian account of yours.
So if you have already invested good amount in your PPF, continue in that only. Don’t open kids PPF acc now.

 

[Ankur dhanda]

For a girl child surely open a SSY account

 

[Deathsnatcher]

Post in thread 'Bank Account for Kid' https://www.technofino.in/community/threads/bank-account-for-kid.10580/post-261860

MF can easily beat it anythime.
Even gold in that case, digital or physical whatever suits you

Current so much in green you recommend right time to invest in MF?
Digital gold/physical give more compounding interest than SSY you feel

 

[Deathsnatcher]

For a girl child surely open a SSY account

Yes baby girl of 3 years and i dont have ppf or anything
i only do NPS nothing else

 

[jack333]

if you yourself invest in your own PPF, and you open a child’s PPF account you can invest 1.5L total in those accounts combined. You can’t put in 1.5L in yours and 1.5L in baby’s PPF as it’ll be under guardian account of yours.
So if you have already invested good amount in your PPF, continue in that only. Don’t open kids PPF acc now.

Kids ppf is opened with parents pan only even if you get your kids pan card made they'll ask for parents pan only. Though many people are depositing separately in kids ppf and own ppf account, I talked with one bank manager and he said it might create problem at the time of maturity after 15 years

 

[thanix]

Yes baby girl of 3 years and i dont have ppf or anything
i only do NPS nothing else

I suggest to open PPF or SSY and max out 1.5L as it is risk free. And any surplus invest in MF or gold as per your choice.

 

[shashank08]

Yes baby girl of 3 years and i dont have ppf or anything
i only do NPS nothing else

Some pointers you can consider:

• Divide investment in 2-3 buckets like PPF, FD/liquid money/SSY (low risk) and equity (MF SIPs which is going to be high risk but should be good for long term).
• As 50L is too high corpus so it is not wise to do lumpsum in equity.
• PPF can be opened in the name of minor under guardianship. So this can give you tax free return with zero risk.
• Look for some account which can give you high rate of return. One such account is IDFC bank minor account. Check that option. It gives you 7% interest for amount above 10L. But this account has limitations of not having direct Net banking or debit card. Account can be accessed from the guardian's login. So you guardian also need to have account with IDFC bank.
• You can utilize Mutual Fund utility to open and invest in the name of minor under guardianship which is easy process (I have done it for my son). Now you can pay for minor's MF from your own account but you have to keep bank account in the name of minor as primary account. Look for this option to invest as SIP in Mutual funds as you are going to keep it for long term so better to look for equity investment as an option.
• MF SIPs as well you can plan and create a good portfolio and spread investment across 2-3 years to avoid hitting the peak.
• Some of the FD options you can look like tax saver FDs.

 

[CC-Muncher]

Current so much in green you recommend right time to invest in MF?
Digital gold/physical give more compounding interest than SSY you feel

Not asking to put it all at once... U need to Spread it at least over 1-2yr as the amount is big.

for Gold: returns in rupee terms over the past 15, 20 and 25 years are 11.6%, 12.4% and 9.4% CAGR, respectively. So it can be a good hedge.
Do 70-80% in stock and 20-30% in gold. Gold will come in handy in marriage time as well.

whatever you do, don't put everything in one asset.

 

[mr_vasanth]

I have PPF in my name and contributing 1.5lakhs per annum. Can I open SSY on my daughter name and contribute 1.5lakhs while continuing with my 1.5 lakhs PPF investment ? I prefer opening SSY since there is a combined 1.5lakhs limit on PPF. Need some SSY/PPF experts input.

 

[bugmenot]

I have PPF in my name and contributing 1.5lakhs per annum. Can I open SSY on my daughter name and contribute 1.5lakhs while continuing with my 1.5 lakhs PPF investment ? I prefer opening SSY since there is a combined 1.5lakhs limit on PPF. Need some SSY/PPF experts input.

Yes you can open but you can't use it for 80C. You can also open another PPF account for your spouse. Since PPF is EEE, the interest income of spouse won't be taxable in your hand. Assuming spouse is not filing own ITR.

 

[jack333]

Yes you can open but you can't use it for 80C. You can also open another PPF account for your spouse. Since PPF is EEE, the interest income of spouse won't be taxable in your hand. Assuming spouse is not filing own ITR.

Can we open another PPF in name of minor using our own pan card not for additional exemption but for investment purpose. Won't there be any problem after 15 years as system will show two ppf one our own and one child's in our pan card? Also i asked them even if you have pan card of child they will take pan card of parent only

 

[bugmenot]

Can we open another PPF in name of minor using our own pan card not for additional exemption but for investment purpose. Won't there be any problem after 15 years as system will show two ppf one our own and one child's in our pan card? Also i asked them even if you have pan card of child they will take pan card of parent only

You can open but your 1.5L limit and minor's limit will be aggregated.

Outlook India - India's Best Magazine| Find Latest News, Top Headlines, Live Updates

Outlook Group: Your ultimate source for top headlines and breaking news from India and world, politics, latest updates on sports and entertainment events, business news, stories on art and culture, elections, literature, society, in-depth news content and Outlook Magazine articles, photo stories...

www.outlookindia.com

 

[jack333]

You can open but your 1.5L limit and minor's limit will be aggregated.

Outlook India - India's Best Magazine| Find Latest News, Top Headlines, Live Updates

Outlook Group: Your ultimate source for top headlines and breaking news from India and world, politics, latest updates on sports and entertainment events, business news, stories on art and culture, elections, literature, society, in-depth news content and Outlook Magazine articles, photo stories...

www.outlookindia.com

Yes that i know only 1.5l exemption of 80c but someone told me you'll be in problem after 15 years when ppf matures. Currently system doesn't check how many ppf accounts are linked to a pan card but at that time it might check.

Read this article especially point no 2

PPF account in name of your child: 10 things you should know

A PPF account cannot be opened in joint names.A parent can open a PPF account in the name of the child in the capacity of being guardian of the minor

www.livemint.com

 

[bugmenot]

Yes that i know only 1.5l exemption of 80c but someone told me you'll be in problem after 15 years when ppf matures. Currently system doesn't check how many ppf accounts are linked to a pan card but at that time it might check.

Read this article especially point no 2

PPF account in name of your child: 10 things you should know

A PPF account cannot be opened in joint names.A parent can open a PPF account in the name of the child in the capacity of being guardian of the minor

www.livemint.com

You misunderstood the point, let me simplify.

You + minor = max 1.5L contribution allowed
You + spouse = max 1.5L + 1.5L allowed

It's better to convert the minor account to normal when child attends 18. You can roll over the PPF for next 5 year in case account was opened while child was 1 and at maturity he/she is still below 18.