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  • Best Recurring Deposit Schemes for Children

    Investing small amounts every month in the form of recurring deposits is the best savings plan that parents can develop for their children. Starting from the time they join kindergarten to the time they graduate from a college, a recurring deposit would offer financial support to parents hoping to provide a bright future. Banks across India offer multiple types of recurring deposit schemes mainly targeting children for fulfilling different purposes like school/college education, children’s education, marriage, etc. Depending on the requirement, parents can avail the suitable recurring deposit schemes from any bank of their choice, making sure that they financially secure their child’s future in every possible way.

    Given Below are Some of the Best Recurring Deposit Schemes Available for Children.

    Tamilnad Mercantile Bank - Kids RD Scheme

    The Kids Rd scheme from Tamilnad Mercantile Bank offers complete financial support to meet the cost of higher education for children. Customers can make small deposits every month and earn high returns when they require the funds. Accounts holders who make regular payments towards a Kid's RD scheme can easily get education loans sanctioned from Tamilnad Mercantile Bank. The minimum tenure that has to be taken by customers in one year with maximum being up to ten years. Parents can start saving with a minimum amount of Rs. 58, with no cap applied on the maximum amount. The minimum target sum is Rs. 10,000, with no cap applied on the maximum amount. The interest rates offered by Tamilnad Mercantile Bank for recurring deposit amounts up to Rs. 15 lakhs ranges from 5.80% to up to 7.80%. The interest rate varies according to the tenure chosen by the customer.

    ICICI Bank - Child Education Plan

    Parents availing the Child Education Plan from ICICI Bank can start investing small amounts from the time their kids are in kindergarten. The recurring deposit contributions have to be done for a small period and account holders can enjoy payouts for the entire tenure of the deposit. The account can be opened in the name of the minor by a parent or guardian. The deposit tenure options available vary from 4 years to up to 10 years and the investment tenure is for 3 years, which can be increased in multiples of three months. The minimum deposit amount required is Rs. 500, which can be increased in multiples of Rs. 100. The Child Education Plan can be funded from the parent’s ICICI Bank Savings Account or through cash or cheques. Customers can earn interest on the deposits done during the Investment phase with payouts happening to the minor’s Youngstar Savings Account on a quarterly or annual basis. The minimum tenure of the payout phase is 1 year and then in multiples of 1 month. The other features available with the Child Education Plan are loan on deposits, premature closure, partial withdrawals and nominations. The documents that have to be submitted while opening the Child Education Plan account are - Applicant’s photo, ID Proof, Proof of relationship, Address proof, date of birth proof for the minor and a self cheque. For deposits amounts below Rs. 1 crore, the interest rate varies from 7.25% to up to 7.50%. For deposits amounts of Rs. 1 crore and above, the interest rate varies from 7.35% to up to 7.60%.

    Punjab National Bank - Bal Vikas Deposit Scheme

    The PNB Bal Vikas Deposit Scheme has been offered by Punjab National Bank to plan future expenses in relation to children’s education. This plan is provided as a combination of an Income cum Fixed Deposit scheme and a recurring deposit scheme. The minimum recurring deposit amount required every month is Rs. 1000, which can be incremented in multiples of Rs. 500 during the first five years of the deposit tenure. The recurring deposit scheme can be taken for five years and the Income option Fixed deposit can be taken for an additional five years. Income options available to deposit holders are either quarterly or monthly. The total tenure of the Bal Vikas Deposit Scheme will be up to 10 years. The interest rates offered on the Bal Vikas Deposit Scheme is as per CARD rates and will be compounded on a quarterly basis. The current interest rate for the Bal Vikas Deposit Scheme is 8% per annum for the 10-year period.

    Sutex Bank - Kanya Utkarsh and Children Growth Plan

    The Kanya Utkarsh and Children Growth Plan is a recurring deposit scheme that can be availed by Sutex Bank customers for securing the future of their girl children. The interest rates offered on the Kanya Utkarsh and Children Growth Plan ranges from 7.50% to up to 8.00%, for deposit tenures from 6 months to up to 7 years.

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