Can minors open a fixed deposit account?

Yes, minors can have fixed deposit (FD) accounts opened in their name. Here are some key points about minor FD accounts:

1. Account Opening: Financial institutions allow FDs to be opened in the name of a minor, represented by a guardian.
2. Documentation: Both, the minor's and guardian’s KYC documents are required for account opening.
3. Ownership: The account will be opened under the minor’s name through a guardian, where the guardian operates the account on behalf of the minor.
4. Limitations: According to the financial institution, there may be certain restrictions in terms of maximum deposit amounts and transaction volumes based on RBI guidelines.
5. Interest Rate: Interest rates are typically similar to general card rates. Additional minor benefits are not available.
6. Maturity: Upon maturity, financial institutions either automatically close the minor FD account or convert it into a regular account once the minor reaches the age of majority.

So, opening minor FDs is possible through guardian involvement, but some limitations on features apply, given reduced legal capacity until the age of maturity.