3 Smart Ways to Create a Sizable Corpus for your Child's Education

For some, accumulating a corpus for their children may begin the moment a child is born. Yes! The highly competitive and costly world of academics and extracurricular activities alike gives sleepless nights to parents. Besides, higher education in a foreign university has become a common trend. To maximize your investment returns, you need to build a strong investment portfolio by choosing the right investment plan for your child’s future.

Here are three smart ways to create a sizeable corpus for your child's education:

Child Career Plan

This scheme is designed by Life Insurance Corporation (LIC) to meet the growing expenses of children’s education. It provides the risk cover on the life of a child during not only the policy terms but also extended term. In this plan, some of the money is paid back through installments at regular intervals. However, most of the amount comes once the child becomes 18 years of age. The scheme is highly flexible for premium payment as it be paid at the yearly, half-yearly, quarterly, or monthly basis.


  • Income Tax Benefit: If you pay life insurance premium up to Rs. 1 lac, the amount is eligible for deduction from the taxable income each year under Section 80C.
  • Survival Benefit: The beneficiary receives 30% of the sum assured along with vested simple reversionary bonuses five years before the expiry date of policy term and 15% of the sum assured in the last four, three, two and one years before maturity of the policy.
  • Maturity Benefit: The beneficiary gets the remaining 15% of the sum assured along with an additional bonus, on maturity.
  • Death Benefit: In case the beneficiary dies after policy commencement, the nominee would receive the sum assured along with the bonus.

Fixed Deposit

Fixed deposit gives enough time for parents to save for their children as it can start as early as one year old. FD does not require you to contribute every few months or years, unlike other schemes; invest in it only once, for a long-term basis. You can start the FD with a small amount and earn a good return as FD interest rates are higher compared to other investment plans. Some banks and financial companies such as Bajaj Finance offer a higher rate of interest on FD, which can benefit you even more.


  • FD for a child can begin with a minimum amount of investment that will give maximum returns
  • In most of the cases, the interest earned on the FD will be eligible for tax deductions under Section 80C of Income Tax Act.
  • The beneficiary will have full financial security during unforeseen circumstances like the death of the nominee.
  • Here’s how you can check the final amount through FD calculator:

Sukanya Samriddhi Yojana (SSY)

This is another excellent scheme to invest in, to build a sufficient corpus for your daughter’s future educational needs. However, it is only for the girl child, to encourage their birth and education. The account can be opened after the birth of the girl child till ten years of age. You can invest a minimum amount Rs. 1000 to Rs. 1.5 lac in a year. You can deposit the money for 14 years. However, the maturity period of this scheme is 21 years, so the final amount will be made available only after maturity. Although it keeps fluctuating, the rate of interest offered in this plan is much higher than other investments.


  • As the name suggests, the scheme is mainly for the girl child.
  • This is a long-term investment scheme, and funds can either be used for the girl’s education or marriage.
  • It is an EEE product, which means exempt, exempt, exempt. Tax exemptions can be claimed under Section 80C of Income Tax Act.
  • Partial withdrawals are allowed after the child becomes 18 years of age.

Secure your child’s future with smart investment schemes, today!

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