Raksha Bandhan 2024: 6 top financial gift ideas for your sister

You could consider presenting your sister with gold jewelry. Practical and valuable, precious metal coins can be beautiful and lasting gifts, appreciated over time. They are memorable and financially wise choices.

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Encourage her to initiate a recurring or fixed deposit (RD or FD) account. You can transfer the amount to her account monthly before it is subtracted from her savings account and placed in her recurring deposit account. Both fixed deposits and recurring deposits will earn her a higher interest rate compared to a regular savings account. Both fixed deposits and recurring deposits are suitable for short-term goals.

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You have the option to invest in MFs through a lump sum systematic transfer plan (STP) or a systematic investment plan (SIP). The attractive returns from equity mutual funds have made them a popular choice for investment among millennials. This not only helps in growing the money but also provides an opportunity for your sister to gain knowledge about investments. If you invest in MFs regularly, you can also transfer some of them to her name.

To transfer mutual fund units, both the sender and recipient must have demat accounts, and the mutual fund units must also be in demat format. If you want to transfer mutual fund units within the same DP, you can access your DP account and input the beneficiary owner (BO) ID of the receiver. After the DP approves the receiver, you can begin the transfer of mutual fund units.

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If you have stocks and are considering giving them as a gift, you can indeed transfer some of your stocks or shares to her name. This transfer is exempt from taxes for both the giver and the recipient.

The charges for gift transactions may vary from broker to broker.

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Consider paying for your sister’s health insurance. In today’s fast-paced world and with rising healthcare expenses, having health insurance is essential. Giving your sister a health insurance plan can be a fantastic present that will shield her from unforeseen circumstances.

It’s feasible to purchase a health insurance plan for your sister under your name. However, the policyholder (the brother) must have a vested interest in the life of the insured individual (the sister). This vested interest can be established if the policyholder is financially reliant on the insured person or is accountable for their healthcare and general welfare. Given that you are family, a vested interest is established.

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