Interest rate: 8.3% Tenure: 14 years

If you have a daughter below 10 years, the Sukanya Samriddhi Yojana is a better option than the PPF because it offers a higher interest rate. Like the PPF, the interest earned is tax free and there is an annual cap of `1.5 lakh on the investment. Accounts can be opened in any post office or designated banks with a minimum investment of `1,000. A parent can open an account for a maximum of two daughters, but the combined investment in the two accounts cannot exceed `1.5 lakh in a year.

Some experts argue that the debt-based Sukanya scheme is not the best way to save for a long term goal. This is true, because equity-based options can deliver higher returns. This is why experts advise that the SSY should be used in combination with other investments, such as equity funds, for saving for a child's future goals. The good part is that the girl child tag lends a sense of purpose to the investment. The maturity proceeds of other investments are often squandered. On the other hand, the Sukanya scheme helps a family save the daughter's education and marriage.

Invest Rs 1,50,000 and Save Tax up to Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds. Save Tax Get Rich

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