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A fixed deposit account is the best way of securing your savings in a bank. Fixed deposits help you increase your savings with a predefined rate of interest and upon maturity, you can easily withdraw your investment. Also, fixed deposits carry less risk and come with guaranteed returns. This makes it an ideal investment option for every individual. There are different types of fixed deposits offered by multiple banks. One of the most popular types among parents is a fixed deposit scheme for children. Such an FD allows the parent/guardian to open a fixed deposit account on behalf of the child. The child will receive the earnings from an FD at the age of 18 years or when the FD reaches maturity (whichever comes first). The guardian/parent is simply in charge of the account.
This is a fixed deposit scheme offered by PNB. It can be opened only on behalf of a girl child. All girls are applicable for this scheme post 8th standard of secondary education and the deposit is withdrawn when the girl reaches the age of 18 years. Also, this scheme is not applicable to students of private unaided/central government school.
This is one of the oldest schemes which was started in the year 1988, specifically for the welfare of children. Under this scheme, any child aged between 1-15 years, who is a citizen of India, is eligible. The interest is paid on the amount till the maturity of the plan.
Many banks allow a minor to open a Fixed Deposit provided their guardian holds the maintenance rights to the scheme. Mentioned below are the same:
Following are the benefits of investing in a Fixed Deposit Scheme for Children
What is the best tax saving plan for my child?
There are multiple options of tax saving investment on behalf of your child. You can invest in any one or more of the following: ELSS, Child Plans, Endowment Plans, FDs, etc.
Which scheme is best for a girl child?
The PNB Balika Shiksha Scheme is an ideal option of FD investment for a girl child.
Which Fixed Deposit Scheme is the best?
There are multiple FD Schemes offered by various banks. One can choose based on interest rates and future goals of the child.
Which Bank is best for an FD in 2019?
There are multiple banks which provide good FD schemes with an excellent rate of return. It is advisable to visit the official website of the respective bank to check the best rates available.
Is it worthwhile to invest in FD for girl child in post office?
Yes, the Sukanya Samriddhi Account offers interest rates of 8.5% and comes with tax benefit under Section 80C of the Income Tax Act, 1961.