FD Schemes – Best 3 Fixed Deposit Schemes For Children’s

FD Schemes

Financial planning for children is a crucial aspect of parental responsibility, aimed at securing their future and providing them with opportunities for growth and development. Fixed deposit schemes tailored for children offer a secure and reliable avenue for parents to invest in their child’s future. In this comprehensive guide, we delve into the top three fixed deposit schemes designed specifically for children, exploring their features, eligibility criteria, benefits, and the process of initiating and withdrawing funds.

1. PNB Balika Shiksha Scheme

The PNB Balika Shiksha Scheme is a specialized fixed deposit option offered by Punjab National Bank, exclusively for the education and empowerment of girl children. This scheme enables parents or guardians to open a fixed deposit account on behalf of a girl child, with the maturity proceeds earmarked for her education expenses. Key features of this scheme include eligibility criteria based on completion of eighth standard education, withdrawal at age 18, and restrictions on school types. By promoting girl child education, this scheme aligns with broader societal goals of gender equality and empowerment.

Also Read… 5 Special FD Investments of SBI

2. Guardian Associated Scheme

While specific fixed deposit schemes tailored exclusively for children are limited, many banks offer the option for minors to open conventional FD accounts with a guardian’s assistance. Banks such as HDFC Bank, Canara Bank, and Indian Bank allow minors to initiate fixed deposit accounts, with the guardian managing the account until the child reaches maturity. This approach not only fosters financial literacy among youngsters but also provides them with a secure avenue for savings and investment. Additionally, minors may benefit from potential interest rate advantages associated with fixed deposit accounts.

3. Allahabad Bank Sishu Mangal

Established in 1988, the Allahabad Bank Sishu Mangal scheme is one of the oldest initiatives aimed at promoting the welfare of children in India. This scheme is open to all Indian citizens between the ages of one and fifteen, offering a platform for parents or guardians to invest in their child’s future. With interest paid on the deposited amount until maturity, the scheme provides a steady accumulation of funds over time. By fostering financial inclusivity and stability, the Allahabad Bank Sishu Mangal scheme embodies the bank’s commitment to supporting the nation’s youth.

Eligibility Criteria for FD for Children

1. Girls who completed class VIII at Kasturba Gandhi Balika Vidyalayas (regardless of SC/ST status) in the academic year 2008-2009 and enrolled in class IX in state/UT government or local schools are eligible for the scheme.
2. The scheme is also open to all SC/ST girls enrolled in various government and private schools.
3. Unmarried girls under the age of 16 enrolled in Class IX on March 31 are eligible.
4. The scheme is open to all children below the age of 18 who have a guardian to make the deposit.

Benefits of the Fixed Deposit for Child

1. Fixed deposits for children can be opened as young as one year old, allowing parents to save for a longer investment horizon.
2. A minimum quantity is required to start the investment.
3. There is no need to invest on a regular basis, providing flexibility to parents.
4. Parents can save for their child’s future or higher education as the FD matures when the child turns 18 years old.

Initiating an FD for Children

1. Visit your bank or NBFC and provide identity verification for the child and the parent/guardian responsible for the account.
2. Along with identity proof, provide address proof, age proof, and a few passport-size photographs of the child.
3. After submitting the necessary documents and bank/NBFC account information, the details will be verified before opening an account for the child.
4. Upon processing the documents, a new FD account will be opened for the child, with the parent/guardian acting as the account’s caretaker until maturity.

Withdrawing the FD for Children

In order to withdraw the fixed deposit under the scheme, the following conditions must be met:

1. The child has turned 18 years old.
2. The child has successfully completed and passed the Class X board exams.
3. If the recipient is a girl, she must have completed her studies for at least two years after enrolling in Class IX.

Conclusion

Fixed deposit schemes for children offer a structured approach to financial planning, catering to a diverse range of beneficiaries. By understanding the eligibility criteria, benefits, and process of initiating and withdrawing funds, parents can effectively secure their child’s financial future. With the flexibility and security offered by these schemes, parents can navigate the journey of parenthood with confidence, knowing that they are laying a solid foundation for their child’s prosperity.