Understanding Post Office Child Plans

IndiaFirst Life
• 09 Sep, 2025

Every parent dreams of securing their child’s future by building a solid financial foundation. Whether it is for education, healthcare, or marriage, savings made early can make a huge difference later. A child plan from the post office can be one of the most reliable options available in India. Backed by the government, these schemes are safe, simple, and provide guaranteed returns. By choosing the right plan, you can create long-term financial security for your child with ease.

Post Office Child Plan Options

India Post offers multiple schemes that can act as a child plan to secure your loved ones’ future. Though not always branded as ‘child policies’, they can be widely used by parents to build a secure savings pool for their children’s future.

Post Office Savings Account
- Post Office Savings Account is simple savings account that parents can open for children above 10 years (or in the name of a minor by a guardian).
- Minimum balance requirement is low. Provides interest on savings while teaching children financial discipline.
- Serves as a starter child plan for parents looking to introduce their kids to banking and basic money management.
Post Office Recurring Deposit (RD)
- Post Office Recurring Deposit (RD) is flexible post office scheme for a child’s financial planning, where parents deposit a fixed sum each month.
- Account can be opened with as little as ₹100. Tenure is 5 years, extendable by another 5 years.
- Helps parents inculcate a disciplined saving habit and ensures a decent corpus for a child’s school or college needs. Many parents treat this as their first child plan for consistent savings.
Post Office Time Deposit (TD)
- Post Office Time Deposit Scheme (TD) works like a fixed deposit, but with different tenures.
- Available for 1, 2, 3, and 5 years. The 5-year TD qualifies for Section 80C tax deductions.
- Provides guaranteed interest and predictable returns. Parents can use this post office child policy to secure short-term goals, like school fees or skill-based courses.
Public Provident Fund (PPF)
- Public Provident Fund (PPF) is long-term, government-backed savings option ideal for building wealth for future education.
- Lock-in of 15 years, partial withdrawals after 7 years. Annual deposit ranges from ₹500 to ₹1.5 lakh.
- Tax-free maturity and compounding growth. By opening a PPF account in the child’s name, parents can create a reliable post office scheme for the child that aligns with big milestones (such as higher education).**
Sukanya Samriddhi Yojana (SSY)
- Sukanya Samriddhi Yojana (SSY) is a flagship scheme for the girl child. Parents or guardians can open an account before the child turns 10.
- Minimum annual deposit of ₹250; maximum of ₹1.5 lakh. Attractive interest rate, usually higher than other small savings schemes.
- Tax benefits under Section 80C, tax-free maturity, and guaranteed growth make it one of the most reliable child saving plans in the post office options for daughters. The funds can be used for education or marriage expenses.**
Kisan Vikas Patra (KVP)
- Kisan Vikas Patra (KVP) originally meant only for farmers, now it is available for any individual looking for long-term wealth creation.
- Minimum investment of ₹1,000 with no upper limit. The investment doubles in around 10 years (depending on prevailing interest rates).
- Guaranteed doubling of money ensures a secure fund for your child’s long-term needs, such as higher education or international studies.
National Savings Certificate (NSC)
- National Savings Certificate (NSC) is a low-risk fixed-income instrument which parents can invest in, in their child’s name.
- Comes with a 5-year lock-in period, fixed interest, and a minimum investment as low as ₹1,000.
- Guaranteed returns and tax deductions under Section 80C. Parents can include NSC in their child’s financial portfolio to balance safety and returns.**

To check if the above options are suitable for you, consider using a child plan calculator. It gives you an estimate of how much you need to invest for a particular goal, so that you can plan your investments and savings accordingly.

Why Combine Post Office Plans with Insurance?

While post office savings are known for safety and guaranteed returns, they primarily focus on wealth creation. They usually do not provide a financial safety net in case of an unforeseen event, such as the loss of the earning parent. This is where insurance becomes essential.

By choosing to buy a life insurance policy alongside a post office child policy, parents can strike the right balance between protection and savings. Here’s why this combination works well:

Dual Security:
Post office schemes ensure stable returns, while life insurance safeguards the child’s future (if something happens to the parent). Together, they create both financial growth and risk coverage.
Goal-Based Planning:
Child-focused savings, such as Sukanya Samriddhi Yojana or PPF, can accumulate funds for education, while the features of child insurance plans ensure these goals remain on track even in uncertain times.
Tax Efficiency:
Both insurance policies and post office schemes often come with tax benefits under different sections of the Income Tax Act.**
Peace of Mind:
Parents can be confident that their child’s dreams, whether it be education, healthcare, or marriage, will not be compromised.

In short, combining insurance with a post office child plan creates a comprehensive financial shield that covers both growth and protection needs.

Securing your child’s future is about choosing safe and reliable options. A post office child plan offers steady growth, while the benefits of child insurance add protection. Together, they help parents safeguard their child’s dreams confidently.

** Tax exemptions are as per applicable tax laws from time to time.

Promoted by Bank of Baroda
AUM of 30,968 Crore as of Mar’25
98.22% Individual Claim Settlement Ratio in FY24-25
1 Day Genuine Claim Settlement Assurance

by IndiaFirst Life
Headquartered in Mumbai, IndiaFirst Life Insurance Company Limited (IndiaFirst Life), with a paid-up share capital of INR 754.37 crore, is one of the fastest growing private life insurers in India in terms of New Business IRP in Fiscal 2023. Our key differentiators are our simple, easy-to-understand products that are optimally priced. As of Sept 30, 2023, we offered 30 retail products, 13 group products along with six riders (across retail and group portfolios), along with policies under the PMJJBY scheme, catering to protection, savings, health and retirement needs of our customers, leveraging multiple distribution capabilities and augmenting various investment options. In all propositions under the categories of Participating Plans, Non-Participating Savings Plans, Non-Participating Protection Plans, Unit Linked Insurance Plans, Group Protection Plans, Corporate Funds Plans, Riders & PMJJBY form a complete suite of offerings that help our customers prepare for the certainties of life. Our products are easy to understand and optimally priced with a developed comprehensive risk management framework/policy.