There are a lot of banks in India that offer fixed deposit schemes for children. Under most of these schemes, the parent or guardian handles the account until the child reaches the age of maturity. Listed below are some of the top fixed deposit schemes for children and their features.
This is a fixed deposit account offered by PNB especially for the girl child.
The various features of the PNB Balika Shiksha Scheme are mentioned below:
|Tenure||Until the girl child reaches the age of 18|
|Loan facility||Not available|
|Automatic renewal||Available for 30 days|
|Premature cancellation||Not available|
The scheme is available for:
Girls who fall in the below mentioned category, will not be able to open an account under PNB Balika Shiksha Scheme:
To withdraw the fixed deposit under the scheme, the student should meet the following condition:
Yes Bank offers fixed deposit schemes for children with tenure ranging from 7 days to 10 years.
The various features of Yes Bank Fixed Deposit for children are given below:
Minimum: 7 days
Maximum: 10 years
The interest rates for Yes Bank Fixed Deposit for Children for deposits below Rs,2 crore is mentioned below:
|Tenure||Interest Rate (p.a.)|
|7 days to 14 days||3.25%|
|15 days to 45 days||3.50%|
|46 days to 90 days||4.00%|
|3 months to 6 months||4.50%|
|6 months to 9 months||5.00%|
|9 months to 1 year||5.25%|
|1 year to 18 months||5.75%|
|18 months to 3 years||6.00%|
|3 years to 5 years||6.25%|
|5 years to 10 years||6.50%|
*The interest rates are revised on 10 September 2021 and can be changed as per bank’s rules and regulations.
There are only a few banks that have special fixed deposit schemes catering just for children. But many banks allow children to open a regular fixed deposit account provided that they have a guardian who will handle the account.
In these schemes, the guardian opens the fixed deposit account on behalf of the minor and once the minor reaches the age of maturity, they can handle the account. Some banks even offer discounts for minors who open a fixed deposit account with them.
Listed below are some of the banks that allow a minor to open a fixed deposit account.
A child receives the earning of the FD when they reach the age of 18 or when the FD matures.
Yes, FD made in the name of a minor is taxable.
Contact any bank that provides FD schemes for minors and follow their procedure to open a fixed deposit account for your child.
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