Can I open a fixed deposit account for a minor?

Yes, you can open a Fixed Deposit (FD) account for a minor in India. However, there are certain rules and guidelines to be followed since minors (below 18 years of age) cannot open an FD account independently due to their legal status. Here’s how you can go about it:

1. The FD account has to be opened by the minor's natural or legal guardian till they attain the age of 18 years.
2. The guardian will be the registered guardian under the bank records for all purposes related to the FD operations.
3. Once the minor turns 18, the FD proceeds will be paid out to the former minor applicant on appropriate documentation.
4. Some financial institutions may offer slightly higher interest rates on FDs opened in a minor's name, similar to senior citizens. It is advisable to compare the rates and do your research before you choose your FD provider.
5. Know Your Customer (KYC) formalities need to be complied with by the guardian and also the minor for opening the minor's account.
6. The minor cannot independently operate the account or prematurely withdraw funds before attaining the majority age.

Please check the latest terms and conditions with your chosen financial institution before opening an FD for a minor.