Want to know some quick information about the fixed deposit for child plans and more? Read on to know more!
Fixed deport is a safe vehicle to park your savings and see it grow over a period. Fixed deposit for child or anyone is a sure-shot financial instrument to build your savings over a tenor.
As a result, a fixed deposit accumulates a pre-determined interest-rate which is paid after the closure of the plan or at the maturity.
Compared to other investment options that come with guaranteed ROI, FDs comes with a sure-shot ROI, and you also get the advantage of withdrawing funds before maturity.
There are various types of investors that seek various benefits out of an FD scheme; there are some service providers that also provide FDs catering to senior citizens and children.
What is a fixed deposit scheme for children?
A fixed deposit for child is not very different from a standard FD scheme. These plans let guardians and parents invest in FD accounts on their children’s behalf. A guardian is the custodian of such an account till the child reaches his/her maturity age or the plan reaches its maturity.
Fixed deposit for child in India schemes at a glance
There are many lenders and banks that offer a fixed deposit for child plans in India. Let’s have a look at some of the popular fixed deposit scheme for children in India.
- PNB Balika Shiksha Scheme
Specially customized for the girl child, it is an FD scheme from Punjab National Bank. Girls who have passed 8th standard are eligible for the plan. Once the girl reaches 18 years of age, you can withdraw the amount. The interest accumulated on bank deposit is exempted from Income tax.
- Allahabad Bank Sishu Mangal Deposit Scheme
The Allahabad Bank Sishu Mangal Deposit Scheme is a scheme by the Allahabad Bank which was launched in 1998 which emphasizes on children’s welfare. Minors under the age 1-15 are eligible to enrol for the plan. The amount gets opened under guardianship after a predetermined amount is deposited. The interest gets paid after the maturity of the plan. You can deposit as much as you want as there is no restriction on the maximum amount that you can keep in it.
- Fixed deposit under guardianship for minors
There are also some banks that offer fixed deposit schemes under guardianship for minors. It means that minors can open and handle their FD schemes after reaching the maturity and till then a guardian is the custodian. Some of the banks that offer the plan are Canara B ank, Bank of India and HDFC Bank.
Why choose FD scheme for children?
The most important element of choosing a fixed deposit scheme for children is to help save up for your child’s future without hassles. You just need to invest once in an FD (Fixed Deposit) as compared to other investments scheme which means it’s inexpensive. Another feature of a fixed deposit for child is that the amount of deposit is comparatively lower.
The Bottom Line
Now that you are aware of the features of a fixed deposit for child, you can easily open it online and get started with the step toward securing your child’s future! All the best!