Gifts are always special. More so, if they are thoughtful. We usually put in a lot of effort when it comes to giving something special to our loved ones. However, the best way to show how much we care is by securing their financial future with gifts that aid in fulfilling their dreams and ambitions.
Sure, a handbag, a car, or even the latest phone sounds like a tempting gift. However, these are depreciating assets that only hold a temporary value. They will be discarded after a few years, rendering the gift devoid of any financial value.
The idea here is to not get inclined toward materialism but look for a present whose value appreciates over time. So, let’s consider some of the best financial gift ideas that might add greater value to the financial aspirations of your loved ones!
1. Open a bank account
One of the best financial gift ideas is opening a bank account for your child, younger sibling, and other loved ones. The best thing is that the account holder need not necessarily be 18 years of age. You can open a basic savings account in a bank for a minor as well, making this gift option available for a lot of people. This will help inculcate a saving habit in them from an early age. Moreover, they can see all the gift money multiplied by earning the interest on the savings account. To go the extra mile, you can collect all the funds in this bank account and invest it in a Smallcase for better returns!
Wondering how to select a Smallcase for investing? Read our article on How to select the best smallcase?
2. Create a Fixed Deposit
A fixed deposit (FD) makes for another rewarding financial gift because of the many benefits it attracts. You can deposit a lump sum amount as a fixed deposit in the name of your loved one.
This is one of the best financial gift ideas for contingency benefits and short-term financial goals. FDs also offer a higher rate of interest than a savings account. Although the interest earned on FDs is taxable, you can claim a deduction as per section 80C of the Income Tax Act, 1961. The best part is that the earnings come under the Exempt-Tax-Exempt category.
Furthermore, FDs qualify as safe investments and are risk-free. This is primarily because they are not market-driven. Unlike other investment tools, you get an assured amount of money at maturity.
Among other benefits, FDs are also liquid assets. Your loved ones can encash it as and when they want. However, there is a penalty for premature withdrawal.
3. Invest in a TejiMandi portfolio
TejiMandi offers two ready-made portfolios, curated by stock market experts after careful analysis and evaluation.
The Teji Mandi Multiplier portfolio is made of mid-cap and small-cap stocks. It has shown an approximate CAGR of 93%. These stocks are expected to show non-linear growth and can be a great investment to earn good returns.
The Teji Mandi Flagship portfolio consists of 15-20 handpicked stocks that are a mix of short-term bets and long-term winners. It has shown approximately 56% CAGR.
With active portfolio management, these are bound to deliver high returns to investors.
4. Buy health insurance
Insurance is an excellent way to protect your family, assets, and property. It is also the best way to manage risks, secure the future, and encourage savings. Above all, it will give you some peace of mind. Wouldn’t you want the same for your loved ones?
With healthcare costs skyrocketing, you can give your loved ones all-inclusive health insurance cover by paying their annual premiums. This will make for one of the best financial gift ideas. It will not only safeguard the beneficiary but also offer tax benefits that further add to your savings.
5. Gift a mutual fund investment
With a mutual fund investment, you can invest in equity or debt categories, starting with just Rs. 500. As the investment appreciates in value, it will support the long-term financial goals of your loved ones. All you will need to do is start a mutual fund investment plan in the name of your child or whoever you wish to gift it to.
If it is for a minor, the parent or legal guardian shall operate the mutual fund account on their behalf. They will also need to complete the KYC formalities. Only after the child turns 18, all Systematic Investment Plans (SIPs) are suspended and the child can operate the account.
A mutual fund investment facilitates liquidity. It also offers other services such as SIP, STP, SWP, and other innovative plans. It is a promising investment and one of the best financial gift ideas to consider. One of the major benefits of mutual funds is that it allows you to plan according to your investment objective. You can select across various categories and subcategories like higher education, wedding expenses, etc.
6. Purchase a good old card
Cards have a couple of options that make for some of the best financial gift ideas. Let’s consider a few—
- Add-on credit card
An add-on credit card is offered by many banks as an extension of your existing credit card. It is a valuable gift to consider within family members—for your spouse, siblings, or even your children. Not only is an add-on credit card with a smaller limit convenient but is also a great tool to improve credit management. It also educates the cardholder about the value of maintaining a good credit score.
- Prepaid gift cards
A prepaid gift card is one of the best financial gift ideas, as they give your loved ones the liberty to buy anything they like. They can use these cards at various merchandise outlets and also for online shopping. It includes an element of surprise while also providing the freedom to shop as per individual needs.
Also known as virtual cards, these are available at banks, ranging in denominations of Rs. 5,000 to Rs. 50,000. A gift card works in a similar way to a debit card, is safe, and operates with a unique PIN. However, these cards have a validity of one year from the date of issue and do not permit cash withdrawal.
These are some of the best financial gift ideas that have the potential to transform lives. You are not only giving the gift of financial security but also financial freedom. It helps in understanding personal finance and kickstarting the journey to becoming responsible citizens. So, are you ready to make your loved ones financially secure?
TejiMandi is committed to helping you and your loved ones become financially stable and pocket good returns. Investing in a smallcase is the best way for you and your loved ones to do the same. All you have to do is pay a monthly SIP or a one-time lump-sum investment fund. The investment planners at TejiMandi will do the rest!