How to create a ₹1 lakh corpus for your child?:You only need to invest ₹610 per month in SBI ‘Har Ghar Lakhpati’ scheme

If you are planning to start investing in your child’s name, you can invest in SBI’s ‘Har Ghar Lakhpati’ scheme. The scheme currently offers annual interest of 6.7%. By investing in this scheme in your child’s name, you can easily build a fund worth lakhs for them. However, it has some specific rules. Here is what you need to know about them. What is the ‘Har Ghar Lakhpati’ scheme? This scheme is a type of recurring deposit, or RD. An RD can help you build substantial savings. You can use it like a piggy bank. In other words, you keep depositing a fixed amount every month after receiving your salary, and when it matures, you will have a substantial sum in hand. The maturity period of the Har Ghar Lakhpati scheme ranges from three to 10 years. This means you can invest for a period of three to 10 years. 6.55% Interest on 3-Year RD for General Citizens Source: SBI Accounts can also be opened in the names of children above 10 years old Anyone can open an individual or joint account. An account can also be opened in the name of a child above 10 years of age, provided the child can sign properly. If the child cannot do so, the account will have to be opened jointly with a parent or guardian. “Har Ghar Lakhpati” Scheme Features: Understand the complete mathematics of investing here If you want to build a ₹1 lakh fund in five years, you will need to deposit ₹1,420 every month in your son’s name. If you want to build a ₹1 lakh fund in 10 years, you will need to deposit ₹610 every month. Under this scheme, children are placed in the general citizen category. To Accumulate ₹1 Lakh in 3 Years, You Will Need to Deposit ₹2,510 Every Month Source: SBI. The installment amounts have been calculated using the prevailing interest rates. You can also invest for more than ₹1 lakh Under the Har Ghar Lakhpati Yojana, you can choose a target of more than ₹1 lakh. You can also invest by setting targets of ₹2 lakh, ₹3 lakh and ₹4 lakh, among others. The amount of your instalment is determined according to the target amount you set.