{"id":11587,"date":"2026-01-31T03:42:18","date_gmt":"2026-01-31T03:42:18","guid":{"rendered":"https:\/\/goldenpi.com\/blog\/?p=11587"},"modified":"2026-01-31T03:42:18","modified_gmt":"2026-01-31T03:42:18","slug":"child-investment-plans","status":"publish","type":"post","link":"https:\/\/goldenpi.com\/blog\/investment-guide\/child-investment-plans\/","title":{"rendered":"Child Investment Plans in 2026"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Every parent wants to give their child a good education and a strong financial start in life. <\/span><i><span style=\"font-weight: 400;\">But how to make this possible?<\/span><\/i><span style=\"font-weight: 400;\"> In India, many <\/span><span style=\"font-weight: 400;\">child investment plans<\/span><span style=\"font-weight: 400;\"> are now available that offer a mix of safety, + growth, + tax benefits. The right investment depends on how much risk you are comfortable with and <\/span><a href=\"https:\/\/goldenpi.com\/blog\/essentials\/the-3-bucket-strategy-a-practical-framework-for-long-term-financial-planning\/\"><span style=\"font-weight: 400;\">how long you can stay invested<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><i><span style=\"font-weight: 400;\">Need help?<\/span><\/i><span style=\"font-weight: 400;\"> In this article, let\u2019s check out four <\/span><span style=\"font-weight: 400;\">child investment plans<\/span><span style=\"font-weight: 400;\"> that Indian parents may consider in 2026.<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_79_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/goldenpi.com\/blog\/investment-guide\/child-investment-plans\/#4_Child_Investment_Plans_in_India_You_May_Consider_in_2026\" >4 Child Investment Plans in India You May Consider in 2026<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/goldenpi.com\/blog\/investment-guide\/child-investment-plans\/#1_NPS_Vatsalaya\" >1. NPS Vatsalaya<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/goldenpi.com\/blog\/investment-guide\/child-investment-plans\/#2_Sukanya_Samriddhi_Yojana_SSY\" >2. Sukanya Samriddhi Yojana (SSY)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/goldenpi.com\/blog\/investment-guide\/child-investment-plans\/#3_Unit_Linked_Insurance_Plan_ULIP\" >3. Unit Linked Insurance Plan (ULIP)<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/goldenpi.com\/blog\/investment-guide\/child-investment-plans\/#A_Investment_Options_in_a_ULIP\" >A) Investment Options in a ULIP<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/goldenpi.com\/blog\/investment-guide\/child-investment-plans\/#B_Charges_in_a_ULIP\" >B) Charges in a ULIP<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/goldenpi.com\/blog\/investment-guide\/child-investment-plans\/#C_Tax_Treatment_of_ULIPs\" >C) Tax Treatment of ULIPs<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/goldenpi.com\/blog\/investment-guide\/child-investment-plans\/#4_Long-Term_Bonds\" >4. Long-Term Bonds<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/goldenpi.com\/blog\/investment-guide\/child-investment-plans\/#A_The_Role_of_Credit_Ratings_AAA_AA\" >A) The Role of Credit Ratings (AAA \/ AA)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/goldenpi.com\/blog\/investment-guide\/child-investment-plans\/#B_Returns_Risk_Profile\" >B) Returns + Risk Profile<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/goldenpi.com\/blog\/investment-guide\/child-investment-plans\/#In_Summary_NPS_Vatsalaya_SSY_ULIPs_and_Bonds_May_Be_Considered_as_Child_Investment_Plans_in_2026\" >In Summary, NPS Vatsalaya, SSY, ULIPs, and Bonds May Be Considered as Child Investment Plans in 2026!<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/goldenpi.com\/blog\/investment-guide\/child-investment-plans\/#Child_Investment_Plans_FAQs\" >Child Investment Plans FAQs<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/goldenpi.com\/blog\/investment-guide\/child-investment-plans\/#1_What_is_the_latest_tax_treatment_of_bonds\" >1. What is the latest tax treatment of bonds?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/goldenpi.com\/blog\/investment-guide\/child-investment-plans\/#2_Who_can_open_an_NPS_Vatsalya_account_in_2026\" >2. Who can open an NPS Vatsalya account in 2026?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/goldenpi.com\/blog\/investment-guide\/child-investment-plans\/#3_Are_premature_withdrawals_allowed_from_the_NPS_Vatsalaya_scheme\" >3. Are premature withdrawals allowed from the NPS Vatsalaya scheme?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/goldenpi.com\/blog\/investment-guide\/child-investment-plans\/#4_When_does_the_Sukanya_Samriddhi_Yojana_SSY_mature\" >4. When does the Sukanya Samriddhi Yojana (SSY) mature?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/goldenpi.com\/blog\/investment-guide\/child-investment-plans\/#5_Can_I_sell_my_bonds_in_the_secondary_market\" >5. Can I sell my bonds in the secondary market?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"4_Child_Investment_Plans_in_India_You_May_Consider_in_2026\"><\/span><strong>4 Child Investment Plans in India You May Consider in 2026<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">When investing in a <\/span><span style=\"font-weight: 400;\">child investment plan<\/span><span style=\"font-weight: 400;\">, your target is never earning \u201cshort-term returns\u201d.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Instead, it is about staying invested for a long period. This gives your money enough time to grow and <\/span><a href=\"https:\/\/goldenpi.com\/blog\/investment-guide\/a-complete-guide-for-goal-based-investing\/\"><span style=\"font-weight: 400;\">build a sizeable corpus<\/span><\/a><span style=\"font-weight: 400;\"> for your child\u2019s future needs.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Below are four <\/span><span style=\"font-weight: 400;\">child investment plans in India<\/span><span style=\"font-weight: 400;\"> that allow you to accumulate funds gradually and use them when your child reaches the required age:<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"1_NPS_Vatsalaya\"><\/span><strong>1. NPS Vatsalaya<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><a href=\"https:\/\/goldenpi.com\/blog\/essentials\/what-is-the-nps-vatsalya-scheme-benefits-eligibility-returns-explained-simply\/\"><span style=\"font-weight: 400;\">NPS Vatsalya<\/span><\/a><span style=\"font-weight: 400;\"> is a long-term savings and pension scheme created only for minors (children below 18 years). This <\/span><span style=\"font-weight: 400;\">child investment plan<\/span><span style=\"font-weight: 400;\"> is regulated by the Pension Fund Regulatory and Development Authority (PFRDA) and was announced in the Union Budget 2024\u201325.\u00a0<\/span><\/p>\n<p><i><span style=\"font-weight: 400;\">The primary purpose?<\/span><\/i><span style=\"font-weight: 400;\"> It lets parents or guardians start saving early for a child\u2019s financial security. This scheme also gives an option to continue the investment under the National Pension System (NPS) after the child becomes an adult.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For more clarity, let\u2019s check out some primary features of this financial product:<\/span><\/p>\n<div class=\"pcrstb-wrap\"><table>\n<thead>\n<tr>\n<th><span style=\"font-weight: 400;\">Feature<\/span><\/th>\n<th><span style=\"font-weight: 400;\">Details<\/span><\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><span style=\"font-weight: 400;\">Eligibility<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Open to all Indian citizens below 18 years of age [including NRI (Non-resident Indians) and OCI (Overseas Citizens of India) children]<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Beneficiary<\/span><\/td>\n<td><span style=\"font-weight: 400;\">The minor child is the sole beneficiary<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Account Ownership<\/span><\/td>\n<td><span style=\"font-weight: 400;\">The account is opened in the name of the minor<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Account Operation<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Managed by a parent or legal guardian until the child turns 18<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Minimum Contribution<\/span><\/td>\n<td><span style=\"font-weight: 400;\">\u20b9250 as an initial contribution and then \u20b9250 per year<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Maximum Contribution<\/span><\/td>\n<td><span style=\"font-weight: 400;\">No upper limit on contributions<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Third-Party Contributions<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Relatives and friends can also contribute as gifts<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Partial Withdrawal Start<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Allowed after completion of 3 years from account opening<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Partial Withdrawal Limit<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Up to 25% of the child\u2019s own contributions (returns excluded)<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Exit \u2013 Lump Sum Limit<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Up to 80% of the total corpus<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Exit \u2013 Annuity Requirement<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Minimum 20% must be used to purchase an annuity<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Full Withdrawal Condition<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Allowed if the total corpus is \u20b98 lakh or less<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n<h3><span class=\"ez-toc-section\" id=\"2_Sukanya_Samriddhi_Yojana_SSY\"><\/span><strong>2. Sukanya Samriddhi Yojana (SSY)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Sukanya Samriddhi Yojana (SSY) is a <\/span><a href=\"https:\/\/goldenpi.com\/blog\/investment-guide\/low-risk-guaranteed-return-atal-pension-yojana\/\"><span style=\"font-weight: 400;\">government-backed savings scheme<\/span><\/a><span style=\"font-weight: 400;\"> launched in 2015 under the Beti Bachao, Beti Padhao initiative. This <\/span><span style=\"font-weight: 400;\">child-saving plan<\/span><span style=\"font-weight: 400;\"> allows parents or legal guardians to build a long-term savings corpus for a girl child.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Be aware that an SSY account can be opened at authorised banks or India Post offices. The interest rate offered by this scheme is reset quarterly. Currently, as of January 20, 2025, you can earn 8.20% p.a. For more clarity, let\u2019s check out some primary features of this scheme:<\/span><\/p>\n<div class=\"pcrstb-wrap\"><table>\n<thead>\n<tr>\n<th><span style=\"font-weight: 400;\">Feature<\/span><\/th>\n<th><span style=\"font-weight: 400;\">Details<\/span><\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><span style=\"font-weight: 400;\">Objective<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Long-term savings for the education and marriage of a girl child<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Launch Year<\/span><\/td>\n<td><span style=\"font-weight: 400;\">2015<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Eligible Child<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Girl child below 10 years of age<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Number of Accounts<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Only one account per girl child<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Who Can Open the Account<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Parent or legal guardian<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Where to Open<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Post offices and authorised banks<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Minimum Deposit<\/span><\/td>\n<td><span style=\"font-weight: 400;\">\u20b9250 per financial year<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Maximum Deposit<\/span><\/td>\n<td><span style=\"font-weight: 400;\">\u20b91.5 lakh per financial year<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Deposit Tenure<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Deposits required for 15 years from account opening<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Account Maturity<\/span><\/td>\n<td><span style=\"font-weight: 400;\">21 years from the date of account opening<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Partial Withdrawal<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Allowed for higher education expenses of the account holder<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Premature Closure<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Allowed in case of marriage after the girl attains 18 years<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Tax Benefit on Deposit<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Eligible for deduction under Section 80C<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Tax on Interest<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Interest earned is tax-free under Section 10, Income Tax Act, 1961<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n<h3><span class=\"ez-toc-section\" id=\"3_Unit_Linked_Insurance_Plan_ULIP\"><\/span><strong>3. Unit Linked Insurance Plan (ULIP)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">A ULIP (Unit Linked Insurance Plan) is a financial product that combines life insurance and investment in one policy. When you pay a premium:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">One part is used to provide life cover\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">and<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The remaining part is invested in market-linked funds (such as equity funds, debt funds, or balanced funds).<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Now, if the policyholder dies during the policy term, the nominee (for example, the child) receives the insurance benefit. Whereas, if the policy continues till maturity, the accumulated investment value is paid.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Note that ULIPs have a mandatory lock-in of 5 years. After this lock-in, withdrawals are usually permitted (subject to policy conditions). For a better understanding, let\u2019s check out its several features:<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"A_Investment_Options_in_a_ULIP\"><\/span><strong>A) Investment Options in a ULIP<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">ULIPs allow you to choose where your money is invested. Usually, you get these three options:<\/span><\/p>\n<div class=\"pcrstb-wrap\"><table>\n<thead>\n<tr>\n<th><span style=\"font-weight: 400;\">Equity Funds<\/span><\/th>\n<th><span style=\"font-weight: 400;\">Debt Funds<\/span><\/th>\n<th><span style=\"font-weight: 400;\">Balanced Funds<\/span><\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><span style=\"font-weight: 400;\">Higher growth potential + higher risk<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Lower risk + stable returns (could be lower than equity funds)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Mix of equity and debt<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n<p><span style=\"font-weight: 400;\">Note that you can also switch between these funds during the policy term.\u00a0<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"B_Charges_in_a_ULIP\"><\/span><strong>B) Charges in a ULIP<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">ULIPs involve multiple charges, such as:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Mortality charges (for life cover)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Policy administration charges<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Fund management charges<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">These charges impact returns, so it is important to compare policies and understand total costs before investing.<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"C_Tax_Treatment_of_ULIPs\"><\/span><strong>C) Tax Treatment of ULIPs<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Premiums paid qualify for a deduction under Section 80C (up to \u20b91.5 lakh per financial year). However, this benefit can be realised only when you file your Income Tax Return (ITR) under the old regime.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Furthermore, maturity proceeds are tax-free only if the total annual premium across eligible ULIPs does not exceed \u20b92.5 lakh. This rule applies to ULIPs issued after February 1, 2021.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"4_Long-Term_Bonds\"><\/span><strong>4. Long-Term Bonds<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">A bond is a loan you give to an issuer such as a government authority, public sector company, or private company. In return, the issuer pays you interest at a predetermined rate and returns the principal amount at maturity.<\/span><\/p>\n<p><i><span style=\"font-weight: 400;\">Okay, but how can bonds work as a <\/span><\/i><i><span style=\"font-weight: 400;\">child-saving plan<\/span><\/i><i><span style=\"font-weight: 400;\">? <\/span><\/i><span style=\"font-weight: 400;\">You can opt for the \u201ccumulative option\u201d at the time of investment. Now, the bond does not pay <\/span><a href=\"https:\/\/goldenpi.com\/blog\/bond-news\/what-are-the-interest-rates-offered-by-nbfc-bonds\/\"><span style=\"font-weight: 400;\">regular interest<\/span><\/a><span style=\"font-weight: 400;\"> (monthly or annually). Instead, the interest is:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Re-invested automatically\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">and<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Paid along with the principal at maturity<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">As a result, interest compounds and a larger lump sum may be available at maturity. In the next sections, let\u2019s understand the role of credit ratings and the risk profile of bonds.\u00a0<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"A_The_Role_of_Credit_Ratings_AAA_AA\"><\/span><strong>A) The Role of Credit Ratings (AAA \/ AA)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Credit rating agencies in India (such as CRISIL, ICRA, India Ratings, and more) assign credit ratings to every bond issue. These ratings range from \u201cAAA to D\u201d and indicate the issuer\u2019s ability to repay the loan. Usually, AAA-rated bonds carry the highest level of safety along with <\/span><a href=\"https:\/\/goldenpi.com\/blog\/bond-news\/how-to-evaluate-the-creditworthiness-of-nbfc-bonds\/\"><span style=\"font-weight: 400;\">minimal default risk<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It is worth mentioning that lower-rated bonds may offer comparatively higher returns but also carry a higher risk of default.<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"B_Returns_Risk_Profile\"><\/span><strong>B) Returns + Risk Profile<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">The returns generated by bonds are usually lower than equities. They depend on:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Interest rate at the time of purchase<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Credit quality of the issuer<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Tenure of the bond<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Since bonds are a fixed-income product, adding them to your equity portfolio might reduce volatility and protect capital.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"In_Summary_NPS_Vatsalaya_SSY_ULIPs_and_Bonds_May_Be_Considered_as_Child_Investment_Plans_in_2026\"><\/span><strong>In Summary, NPS Vatsalaya, SSY, ULIPs, and Bonds May Be Considered as Child Investment Plans in 2026!<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">So now you know about some <\/span><span style=\"font-weight: 400;\">child investment plans in India<\/span><span style=\"font-weight: 400;\">. In 2026, if you are looking to start investing for your child, you may invest in:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">NPS Vatsalya<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Sukanya Samriddhi Yojana (SSY)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">ULIPs<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Long-term bonds<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Each option serves a different purpose and suits different needs. You may choose among these options based on your risk appetite, time horizon, and return expectations.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you are exploring bonds, you may <\/span><a href=\"https:\/\/goldenpi.com\/corporate-bonds\"><span style=\"font-weight: 400;\">visit the GoldenPi platform<\/span><\/a><span style=\"font-weight: 400;\">. Here, you can find multiple bond series along with important information, such as the bond issuer\u2019s name, credit rating, maturity, yield, and more.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Child_Investment_Plans_FAQs\"><\/span><strong>Child Investment Plans FAQs<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"1_What_is_the_latest_tax_treatment_of_bonds\"><\/span><strong>1. What is the latest tax treatment of bonds?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Interest earned on bonds is taxable and must be included in your total income under the head \u201cIncome from Other Sources\u201d. Additionally, capital gains tax may apply if the bonds are sold before maturity.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"2_Who_can_open_an_NPS_Vatsalya_account_in_2026\"><\/span><strong>2. Who can open an NPS Vatsalya account in 2026?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The scheme is open to all Indian citizens below 18 years, including NRI and OCI children. The account is opened in the child\u2019s name and is managed by a parent or legal guardian until the child turns 18.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"3_Are_premature_withdrawals_allowed_from_the_NPS_Vatsalaya_scheme\"><\/span><strong>3. Are premature withdrawals allowed from the NPS Vatsalaya scheme?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Yes, withdrawal is allowed after 3 years from the account opening date. This can be done up to 25% of the child\u2019s own contributions (returns earned are not included). Furthermore,\u00a0 withdrawal is allowed only for education, medical treatment, and specified disabilities.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"4_When_does_the_Sukanya_Samriddhi_Yojana_SSY_mature\"><\/span><strong>4. When does the Sukanya Samriddhi Yojana (SSY) mature?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">An SSY account matures after 21 years from the date of account opening (regardless of the child\u2019s age at that time).<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"5_Can_I_sell_my_bonds_in_the_secondary_market\"><\/span><strong>5. Can I sell my bonds in the secondary market?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Yes, most listed bonds can be sold in the secondary market before maturity. However, it is subject to market liquidity and prevailing prices.<\/span><\/p>\n<p><strong>Disclaimer:<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">This information is for general information purposes only. GoldenPi makes no guarantee on the accuracy of the data provided here; the information displayed is subject to change and is provided on an as-is basis. Nothing contained herein is intended to or shall be deemed to be investment advice, implied or otherwise. Investments in the securities market are subject to market risks. Read all the offer-related documents carefully before investing.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Bonds or non-convertible debentures (NCDs) are regulated by the Securities and Exchange Board of India and other government authorities. GoldenPi Securities Private Limited is a registered debt broker and acts as a distributor and not as a manufacturer of the product.<\/span><\/p>\n<p><script type=\"application\/ld+json\">{\"@context\":\"https:\/\/schema.org\",\"@type\":\"FAQPage\",\"mainEntity\":[{\"@type\":\"Question\",\"name\":\"1. What is the latest tax treatment of bonds?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Interest earned on bonds is taxable and must be included in your total income under the head \u201cIncome from Other Sources\u201d. Additionally, capital gains tax may apply if the bonds are sold before maturity.\u00a0\"}},{\"@type\":\"Question\",\"name\":\"2. Who can open an NPS Vatsalya account in 2026?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"The scheme is open to all Indian citizens below 18 years, including NRI and OCI children. The account is opened in the child\u2019s name and is managed by a parent or legal guardian until the child turns 18.\"}},{\"@type\":\"Question\",\"name\":\"3. Are premature withdrawals allowed from the NPS Vatsalaya scheme?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Yes, withdrawal is allowed after 3 years from the account opening date. This can be done up to 25% of the child\u2019s own contributions (returns earned are not included). 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But how to make this&hellip;<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"no","_lmt_disable":"","footnotes":""},"categories":[26],"tags":[20],"class_list":["post-11587","post","type-post","status-publish","format-standard","hentry","category-investment-guide","tag-investment-strategies"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Latest Child Investment Plans in India 2026 | Check Features, Rules, Interest Rates, and more<\/title>\n<meta name=\"description\" content=\"Want to secure your child\u2019s future? 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