• Fixed Deposit Schemes for Children

    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.

    Fixed Deposit Schemes for Children

    PNB Balika Shiksha Scheme

    This is a fixed deposit account offered by PNB especially for the girl child.

    Features of PNB Balika Shiksha Scheme

    The various features of the PNB Balika Shiksha Scheme are mentioned below:

    Amount

    Minimum: Nil

    Maximum: Rs.3,000

    Tenure Until the girl child reaches the age of 18
    Loan facility Not available
    Automatic renewal Available for 30 days
    Premature cancellation Not available

    Eligibility

    The scheme is available for:

    • Girls who finished class VIII from Kasturba Gandhi Balika Vidyalayas (regardless of whether they are SC/ST) from academic year 2008-2009 onwards and enrolled in class IX in state/UT government or local schools.
    • All SC/ST girls studying in various government and local schools are also eligible for this scheme.
    • Unmarried girls under the age of 16 on 31 March when they enroll in Class IX

    Exclusion

    Girls who fall in the below mentioned category, will not be able to open an account under PNB Balika Shiksha Scheme:

    • Girls enrolled in private schools
    • Girls enrolled in central government schools

    Withdrawal Process

    To withdraw the fixed deposit under the scheme, the student should meet the following condition:

    • Attained the age of 18
    • Have completed and passed the Class X board exams successfully.
    • After enrolling in class IX, the girl recipient continued her studies for at least 2 years.

    Yes Bank Fixed Deposit for Children

    Yes Bank offers fixed deposit schemes for children with tenure ranging from 7 days to 10 years.

    Features of Yes Bank Fixed Deposit for Children

    The various features of Yes Bank Fixed Deposit for children are given below:

    Tenure

    Minimum: 7 days

    Maximum: 10 years

    Amount Minimum: Rs.10,000
    Premature withdrawal Available
    Auto renewal Available
    Overdraft facility Available

    Yes Bank Fixed Deposit for Children Interest Rates for Deposits Below Rs.2 Crore

    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.

    Fixed Deposits under Guardianship for Minors

    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.

    • Canara Bank
    • HDFC Bank
    • Bank of India

    FAQs on Fixed Deposit Schemes for Children

    1. How do minors get FD?

      A child receives the earning of the FD when they reach the age of 18 or when the FD matures.

    2. Is FD made in the name of a minor is taxable?

      Yes, FD made in the name of a minor is taxable.

    3. How do I open a fixed deposit account for my child?

      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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