Setting up a fixed deposit for your children can help you prepare a secure future for them. With the rising cost of education, healthcare and other necessities, it is imperative to secure your child's future by starting an FD (Fixed Deposit) for them.
Planning for your child's future is crucial as they need support to grow and thrive as an individual. Financial planning is one of the foundation stones that could help your child achieve their dreams with no roadblocks. One of the most common ways parents set aside savings for their kids is by investing in a Child Fixed Deposit. An FD offers secure, steady and assured returns on a lump sum investment in the form of interest and the principal amount, which can be withdrawn upon maturity. You can make a fixed deposit for your child even if they are just a year old. With Shriram fixed deposit, you can get the best interest rates to start your journey of building a secure future for your children. This blog will help you understand the benefits of a child fixed deposit and why you should invest in such a scheme that can help you select the best plans for your children.
Secure your child's future with an FD
The cost of education, healthcare, and other bare essentials is on the rise. It is imperative to ensure financial security for your children to have a bright and happy future. An FD is a secure, risk-free option that will help you build a better future for your ward. This is why investing in an FD is the ideal choice to plan your investment.With attractive interest rates ranging from approximately 5% - 7%, starting an FD for your child is effortless. Apart from the guaranteed returns, you also get multiple benefits with a fixed deposit. The benefits include higher interest rates, assured returns, flexible tenor, the ability to manage your investment online and low minimum deposit amounts. Let us take a closer look at these benefits to understand better what you can gain through this investment.
What are the benefits you get from investing in an FD for children?
A parent or guardian can start the FD for their children and avail of the unique benefits that come with this account. These benefits can be advantageous over time, giving your child's dreams to grow bigger and better.
- Assured returns
Fixed deposits are considered to be one of the safest forms of investment. This means that parents can guarantee that the investment for their child is in safe hands. On turning 18 years old, the responsibilities of handling the FD shift to the child, and they get to decide what they want to do with it.
- Higher rate of interest of FDs
When booking a particular FD for your children, you can avail of special higher interest rates. You can check the latest interest rates through the Shriram interest rate chart to know how much you will get on the maturity of the deposit.
- Online investment options
With a few clicks through any device connected to the internet, you can apply for an FD in seconds. This process saves valuable time and places all the options before making an informed decision.
- Low minimum deposit amount
Some banks and NBFCs offer low minimum deposit options. This is because sometimes, when inflation is high, saving can become an issue for some people. This low minimum deposit plan can help you invest in a fixed deposit for your children during financial difficulty.
- Flexible term
You can open a fixed deposit for your child and select the term according to your preference and goals. A children's fixed deposit tenure can range from 12 months to 5 years. You can use the Shriram Unnati Fixed Deposit calculator to know how much you will get in returns at the available interest rate over a specific period
What is the procedure to start a fixed deposit scheme for children?
You can open an FD on behalf of your child, and they will receive the earnings from the FD when they turn 18 years old or when the FD reaches its maturity. The parent or guardian is simply in charge of the account. Here are the steps to start a Shriram FD for your child:
Step 1: You must visit your bank or NBFC and provide identity proof of the child and parent/guardian responsible for maintaining the account.
Step 2: Apart from identity proof, you will also be asked for address proof, age proof and a few passport-size pictures of the child.
Step3: After providing the required documents and the bank/ NBFC account details, the information will be verified before they start an account for the child.
Step4: After processing the documents, a new FD account will be opened for the child, with the parent/guardian as the caretaker of the account till it matures.
The interest you earn from an NSC will not be taxed. A fixed deposit account with a minimum deposit of five years, also known as a tax-saving FD, can help you save taxes. A tax-saving FD will allow a person to claim deductions of Rs. 1.5 lakhs per year.
With an excellent financial savings plan ready for your child, you can rest easy knowing that they will not have to struggle to fulfil their dreams. An FD for children adds to this peace of mind with its assured returns on maturity. Apply now for an SFL fixed deposit to secure the future for yourself and your children.
- Setting up an FD for your children can help them have a financially secure future.
- There are various types of FD schemes for children; each has its benefits.
- You can avail of additional benefits when investing in an FD for children.
- FD is the most secure investment scheme; returns are assured.