Investing in your child’s future is a priority for every parent. The good news is that there are some fixed deposit plans designed for children in India that offer a secure and steady way to save and grow funds for their education, marriage, or other future endeavors.
Let’s explore some of the top fixed deposit plans for children in India for education. Use this article as a comprehensive guide to make wise financial choices for their little ones!
Top Fixed Deposit Plans for Children in India
Here are some of the best-fixed deposit plans for a child’s education in India that parents should consider!
1. HDFC Bank Kids Advantage Fixed Deposit
Interest Rate: HDFC Bank offers competitive interest rates, currently ranging from 3.50% to 6.25%.
Special Features: This scheme allows parents to invest in their child’s name, with a minimum deposit amount of ₹5,000. There’s also a facility for monthly interest payouts, which can be beneficial for children’s expenses.
2. ICICI Bank Young Stars Fixed Deposit
Interest Rate: ICICI Bank provides attractive interest rates on its Young Stars Fixed Deposit, currently ranging from 4.50% to 6.00%.
Special Features: Parents can open this FD on behalf of their child with a minimum deposit amount of ₹5,000. The scheme also offers flexible tenure options.
3. Axis Bank Future Stars Savings Account
Interest Rate: Axis Bank offers interest rates ranging from 3.50% to 6.25%.
Special Features: The Future Stars Savings Account is designed for children, providing them with a dedicated account to save for their future. This account also offers a personalized debit card for the child.
4. IDFC FIRST Bank Kids’ Dream Plan
Interest Rate: IDFC FIRST Bank offers competitive interest rates for its Kids’ Dream Plan, which vary depending on the tenure.
Special Features: Parents can open this fixed deposit plan for their children with a minimum deposit of ₹10,000. The scheme is designed to help parents build a corpus for their child’s dreams, such as education or a grand wedding.
5. SBI Multi Option Deposit Scheme (MODS)
Interest Rate: SBI offers interest rates varying from 3.00% to 5.40%.
Special Features: Although the interest rates may not be the highest, SBI’s MODS allows parents to create a linked fixed deposit with a savings account for their child. This provides easy access to funds when needed.
Fixed Deposit Plans in India with the Highest Interest Rates
Here are some fixed deposit plans in India with the highest interest rates:
1. IDFC FIRST Bank Fixed Deposit
Interest Rate: IDFC FIRST Bank offers competitive interest rates, with rates for regular customers starting at 5.75% and going up to 6.75%. Senior citizens are offered an even more attractive rate of up to 7.25%.
2. Mahindra Finance Fixed Deposit
Interest Rate: Mahindra Finance provides interest rates ranging from 6.75% to 7.50%. Senior citizens receive a higher rate of up to 7.75%.
3. Bajaj Finance Fixed Deposit
Interest Rate: Bajaj Finance offers one of the highest interest rates, ranging from 6.85% to 7.20%. Senior citizens can enjoy even higher rates of up to 7.35%.
4. HDFC Fixed Deposit
Interest Rate: HDFC offers competitive interest rates on fixed deposits, starting from 5.40% and going up to 6.25%. Senior citizens receive an additional interest rate benefit.
5. ICICI Bank Fixed Deposit
Interest Rate: ICICI Bank provides attractive rates on fixed deposits, ranging from 5.50% to 6.00%. Senior citizens enjoy higher interest rates.
6. Kotak Mahindra Bank Fixed Deposit
Interest Rate: Kotak Mahindra Bank offers competitive interest rates, ranging from 4.50% to 5.80%. Senior citizens receive an extra boost to their interest rates.
7. PNB Housing Finance Fixed Deposit
Interest Rate: PNB Housing Finance offers interest rates that start from 6.00% and go up to 6.50%. Senior citizens are entitled to a higher rate of up to 6.75%.
Conclusion
Investing in your child’s future through fixed deposit plans is a wise financial move. The top fixed deposit plans for children in India offer parents a secure and reliable means to save and grow their funds.
By selecting the right plan based on interest rates, flexibility, and other features, parents can take important steps toward ensuring their child’s financial security and well-being in the years to come.
These plans not only provide financial growth but also teach children the value of saving and investing for their future.
