Different Fixed Deposit Schemes for Children Available in India

Different Fixed Deposit Schemes for Children Available in India

Several years ago, education was affordable, and a degree could help you find a job. However, the situation today is different, and education expenses are rising year after year. Your child may require more than a college degree. He or she may need to pursue extracurricular activities, higher education, and undergo personal coaching to stand out from others.

You need to do smart planning and invest in low-risk, high-yielding instruments so that you are financially equipped to provide your child with the required facilities for academic and overall development. Deposits are a preferred option, as you can earn assured returns, which help you build a sizable corpus over the years.

Many financial institutions now offer fixed deposit (FD) schemes for children, which enable you to open an account on behalf of your child. The funds are available when your child becomes 18 years old or on maturity, whichever is earlier. You are in charge of the deposit during this period.

Private and public sector banks offer FDs for children.

Some of the deposit schemes available for children include: 

  1. PNB Balika Shiksha

You can open this deposit for your daughter after standard eight if she is not attending an unaided private or central government school. You can withdraw the deposit when she reaches 18 years of age.

  1. Deposits under guardianship for minors

Banks like Canara Bank, HDFC Bank, and Bank of India allow minors to open deposits as long as the guardian is responsible for the maintenance rights of the scheme.

  1. Sishu Mangal

Allahabad Bank offers this scheme since 1988. It is aimed at the welfare of children. Any child between the ages of one and 15 is eligible for the scheme. The interest on the capital is paid until the deposit matures.

Benefits of fixed deposits

Deposits have lower risks as the interest is assured at the time of opening the account. Here are some additional advantages of FDs:

  1. Higher returns

Deposits provide higher rates compared to bank savings accounts. Additionally, non-banking financial companies (NBFCs) like Mahindra Finance offer FDs at competitive fixed deposit interest rates.

  1. Versatility

You can choose the tenure as per your requirements. Moreover, you can opt for periodic withdrawal of the interest if required.

  1. Simple procedure

You can apply for a fixed deposit online via the institution’s website. The entire process is hassle-free, and you need to provide only a few details to open the account.

Secure your child’s future with Mahindra Finance deposits. Visit its website and check your FD eligibility today.

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