A fixed deposit account is of the most secure options to store your savings at a bank. Fixed deposits help you expand your savings by paying a fixed rate of interest and allowing you to simply withdraw your investment at maturity.
Fixed deposits are also less risky and offer guaranteed profits. As a result, it is an excellent investment opportunity for everybody. A variety of fixed deposits are available from various banks.
A fixed deposit strategy for children is one of the most popular forms among parents. A fixed deposit account of this type allows the parent/guardian to open an account on behalf of the child. The child will receive the earnings from an FD when he or she reaches the age of 18 or when the FD reaches maturity. The account is simply managed by the guardian/parent.
PNB offers this fixed deposit option. It can only be opened on behalf of a girl kid. After the eighth standard of secondary education, all females are eligible for this scheme, and the deposit is withdrawn when the girl reaches the age of 18. Furthermore, this scheme does not apply to pupils who attend a private unaided/central government school.
Only a few banks provide special fixed deposit programs designed specifically for youngsters. However, many banks will allow youngsters to open a conventional FD account if they have a guardian who would manage the account.
In these schemes, the guardian opens the fixed deposit account on behalf of the minor, and the minor can control the account after they reach the age of maturity. Minors who open a fixed deposit account with a bank may potentially be eligible for a discount.
Some of the banks that allow minors to open fixed deposit accounts are listed below.
This is one of the oldest schemes, established in 1988, exclusively for the welfare of children. Any youngster between the ages of one and fifteen who is an Indian citizen is eligible for this scheme. The interest is paid on the amount until the plan matures.
The plan is available for the following:
The benefits of investing in an FD plan for Children are as follows.
You can open an FD on behalf of your child, and they will receive the earnings when they attain the age criteria of 18 or when the FD matures. The parent or guardian merely manages the account.
The following are the steps to starting a Shriram FD for your child:
Step 1: Go to your bank or NBFC and give identity verification for the child and the parent/guardian responsible for the account.
Step 2: In addition to identity proof, you will be required to provide address proof, age proof, and a few passport-size photographs of the child.
Step 3: After submitting the necessary documents and bank/NBFC account information, the information will be verified before opening an account for the child.
Step 4: Following the processing of the documents, a new FD account will be opened for the child, with the parent/guardian acting as the account's caretaker until it matures.
The student must complete the following conditions in order to withdraw the fixed deposit under the scheme:
Q1. How can I set up a savings account for my child?
To open an FD account for your child, contact any bank that offers FD schemes for children and follow their procedures.
Q2. How do minors obtain FD?
When a child attains the age of 18, or the FD matures, they receive the earnings.
Q3. Is it taxable to make an FD in the name of a minor?
Yes, FDs created in a minor's name are taxed.
Q4. Is SSY a fixed deposit scheme for a girl child? Is it worthwhile?
Yes, the Sukanya Samriddhi Account pays 8.5% interest and is tax-free under Section 80C.
Q5. Which is the finest Fixed Deposit Scheme?
Various banks provide a variety of FD Schemes. One can make a decision based on interest rates and the child's future goals.