Most of us make investments to meet specific financial goals such as to safeguard our future, and particularly the future of our progenies. On the righteous occasion of children’s day this year, you may want to start a fixed deposit (FD) account in the name of your child and empower her future on an incremental basis.
Unlike investments in equity, fixed deposit schemes are secure and are devoid of any risk. Although the returns given by these schemes are lower, but the risk-free investments — invariably — are lower than their risky counterparts.
These are some of the FD schemes you can open on Nov 14 to secure your child’s future:
PNB Balika Shiksha Fixed Deposit Scheme: This deposit scheme can be run in the name of all girls who pass class VIII from KGBV and enrol for class nine in state/ UT govt/ govt aided schools and all SC/ST girls who have passed VIII and enrol for class nine in a government school.
However, one cannot open an account in the name of students enrolled in private unaided schools or the ones run by central government. The accumulated sum can be withdrawn upon the child attaining the age of 18. But no premature withdrawal is allowed barring in the case of death of child.
Yes Bank’s Fixed Deposit scheme for Children: Yes Bank offers fixed deposit scheme for child/ children and offers the same interest which it gives to regular term deposits.
The key benefits of FD scheme include auto renewal, overdraft facility, interest rate up to 7.25 percent, enhanced reach and flexibility.
There are other fixed deposit plans that one can run under your guardianship:
HDFC Bank: The largest private lender offers interest rup to 6.5 percent on its fixed deposits (FDs). The highest rate of 6.5 percent is given on term deposits of 18 months up to 5 years. When a deposit is made for a period longer than this, the rate of interest is 6.25 percent.
Bank of India: The state lender offers an interest of up to 7.25 percent for term deposits with a tenure of 777 days. The fixed deposits for other time period ranges between 5.75 percent and 6.25 percent.
ICICI Bank: The second-largest private lender offers interest at the rate of 6.35 percent on its long-term deposits between the time period of 3 years to five years. Other interest rates range between 6.1 percent to 6.25 percent.