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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. https://www.youtube.com/watch?v=bfDZQ9S_ybQ&t=13s 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. 

Rising school fees and medical expenditures and increasing living conditions have forced several parents to keep saving intensively. Child FD plans are the ideal solution for anybody searching for better options and longer-term investment products to build a foundation. Many government-recognized fixed deposit programs for children in the industry complement independent schemes offered by Indian banking institutions.  How are FDs a secure savings plan for your child’s education?  FD plans allow you to deposit your money with a bank and receive interest on it. The funds grow in line with the interest rate, and you may withdraw them at the end of the FD term. Because of the safe investments, this is a secure investment instrument popular among individuals who prefer little risk.  Minors' parents can now register an FD account on their behalf to save and develop a foundation for their children. These deposits might provide the necessary financial push to a child's hopes and educational goals. When the kid reaches adulthood, they can acquire control of the account and spend the funds as per the requirement for education.  One of the best long-term investment options, especially for customers concerned about the security of their assets, is the traditional savings model of FD investments. You may create a fixed deposit account through any bank with a set sum for a lengthy period, such as three, five, or ten years, at a specified interest rate ranging from 3% to 6.5 % each year. After the term, the capital and interest can be withdrawn. Best FD interest rates are offered basis effective dates From 2015 to 2020, the value of bank fixed deposits as a component of wealth generation in financial assets in India was calculated. In the fiscal year 2020, Indians maintained about 46 trillion rupees in bank fixed deposits as individual assets. This was a significant rise in the value of fixed deposit assets over the previous fiscal year's 44.18 trillion rupees.  Why invest in FD savings for your child's education?  The following essential reasons to invest in child FD plans entice parents greatly.  1. Higher FD interest rates:   Interest Rates from 4% to 7% can be earned on Fixed deposits for children. Furthermore, the yearly compounding of the FD bank rate results in a larger total upon maturity. High-interest rates can meet the expenses to be incurred for educational expenses.  Best fixed deposit with the Highest interest rates in 2022  Planning Fund for Your Child's Education is made easier by the best FD rate on fixed deposit investments. In India, investment terms ranging from 7 days to 10 years are available to suit your needs. 2. Flexibility in FD duration   Several FD schemes enable the investors to choose a tenure typically lengthened ten years or more. To get the gains of compounding, it is best to choose a longer term.   Account holders benefit from flexibility in Fixed Deposit periods, which includes advantages as follows. Thus, investors can plan accordingly to save for a child's education.  Competitive interest - Flexible Fixed Deposits provide more excellent interest rates than Savings Accounts, allowing you to make more money with your money.  Adjustable tenures - Varying banks provide numerous tenures for Flexi deposit programs, guaranteeing that one picks a term that best meets their financial demands.  The amount for investment - Individuals can pick the proportion they want to invest, with different banks accepting varying amounts as deposits.  Early withdrawal - Several banks permit premature withdrawals from Flexi fixed deposit accounts due to particular restrictions.  Loan provision - Depositors can typically obtain loans against flexible fixed deposits, depending on bank restrictions.  3. Assured returns   An FD account's returns are secured and assured. There are no fees associated with obtaining the maturity money. The full payment is paid as a lump sum to the recipient. The monetary benefits that an FD provides are unaffected by market volatility. A loan over gold can be undertaken for a maximum of 80% of the deposit value, while a loan obtained on the FD amount can be taken for a maximum of 90% of the initial deposit. With a fixed deposit, investors may also choose a flexible duration to invest money that meets their needs. Parents as Investors can feel guaranteed the amount they can expect, which helps to plan their child's educational dreams.  4. Low minimum deposit quantity The minimum investment is not significant enough to take away your money. You may also choose a monthly structured investing option with specific child fixed deposit plans. For most banks, the minimum FD amount is as little as 5000 rupees. Certain banks may need a minimum of 10,000 rupees if this is your first fixed deposit. Since the deposit quantity amount is not too huge, parents can start early with their FD savings to meet their future educational expenses.   Conclusion  Start saving for a child's educational fees as early as possible. Parents must also invest wisely to obtain the best results. Parents must set money away regularly to save for their child's education. The decision to invest should be based on the product's expenses, tax-efficient yields, expenses, and volatility. With a well-planned long-term approach and a well-chosen FD scheme, parents may accumulate significant capital and ensure their child's educational aspirations are funded over time.  FAQs How can I save money for my child's education?   To save money for your child's education, consider setting up a dedicated savings account, invest in education-specific savings plans or mutual funds, create a budget to cut unnecessary expenses, explore government-sponsored education savings schemes, and seek advice from a financial advisor to develop a tailored savings strategy.   Which is the best-fixed deposit for kids?   The best-fixed deposit for kids would depend on factors like interest rates, lock-in period, and terms offered by various financial institutions. It's best to research and compare options from different banks and financial institutions to find the most suitable one.  Which is the best saving for children's education?   The best saving option for children's education may vary depending on individual circumstances. Some popular choices include 529 plans (in the USA), Registered Education Savings Plans (RESPs) in Canada, and Education Savings Accounts (ESAs) in some other countries. It's advisable to research and consult with a financial advisor to find the most suitable option for your situation.  TALK TO AN EXPERT

Mutual Fund vs FD is a long-standing debate in the financial arena. While one offers fixed and stable returns, the other offers a chance at wealth generation.  Fixed Deposits are the most popular and favored investment mode among Indian households. And why not! It feels safe to have an investment that guarantees a risk-free return. An FD allows you to put a lump-sum amount with the bank with a fixed interest rate and lay back for a good long period. Once the deposit matures, you can withdraw your money and enjoy the interest earned over the selected period.  Mutual Funds enable you to pool your money and earn a return. Every Mutual Fund has a portfolio manager who invests your money into stocks according to your risk appetite and ROI. Therefore, the return on Mutual Funds depends on the market conditions. Unlike fixed deposits, it does not have a lock-in period. Choosing the right investment journey for your child is the primary concern for every parent. If you are confused between Mutual Funds and Fixed Deposits, then look at both these investment options from various standpoints.  Inflation-adjusted rate of return  Inflation is the most crucial yet commonly ignored aspect of investment. It is the rate at which the value of your money decreases with time. Inflation reduces your purchasing power and creates financial instability.  In India, FDs do not offer an inflation-adjusted rate of return. The maximum rate of interest on FDs is 5% to 7%. However, the inflation rate in recent years has been recorded somewhere between 4-6%.  Inflation-adjusted return that you receive adds zero value to purchasing power. Instead, if the inflation rate goes higher than the interest rate, you will likely lose the money you have invested.  On the other hand, Mutual Funds are highly responsive to the market conditions. Also, they come with the benefit of compounding on SIP investments. You can start with an amount as low as Rs. 500, and your money will grow every month. Mutual Funds, especially equity-based mutual funds, are influential enough to adjust the impact of inflation on your money.  Risk Factor Fixed deposits feel safe on the surface because they are government-regulated. But, when it comes down to investing in your child’s education, the risk against this safety goes scary. The need of the hour is to grow your money. FDs may keep your money safe but add nothing to growth.  Mutual funds, however, allow you to mitigate the risk through portfolio diversification. You can identify your risk appetite and stash your money accordingly. Moreover, you have experts who guide you through your investment journey and help you attain your financial goals.  Tax Implications Tax payable on fixed deposits is subject to the Slab rate under the Income Tax Act, 1961, as amended from time to time. Also, the interest that you earn on FDs is tax-exempt under sec 80 TTB to the extent of Rs. 50,000.  Whereas, Mutual Funds listed under Capital Gains are taxable. The tax rate would vary depending on the Mutual Fund and its income. The duration for which the Mutual Funds are held before the sale is significant for taxation purposes.  Source: Freepik Liquidity  Keeping the persistent trend of Education Inflation in mind, it isn’t wise to lock your money into Fixed Deposits. Once you make a choice, you can not withdraw until maturity.  Mutual Funds come with no lock-in and are highly liquid. You can choose between a lump sum and a SIP investment. It enables you to start small but earns high market-based returns. You can take away your money at will! What are mutual funds? Read More Wealth generation With the pace at which the colleges are upscaling their fee structures, it has become challenging to keep up with the cost. Therefore, parents don’t just have to save but ensure wealth accumulation to pay for the price.  Unfortunately, fixed deposits fail here. The ultimate return you receive from an FD would fall far below the level of return you need. However,  if planned early and the right way, mutual funds are incredibly potent to help you reach your target. All you need to do is make the best out of the investment. Start early and extract the magic of compounding! Parents need to look at the broader picture when choosing an asset for their child’s education. Due to their low Inflation-adjusted return, fixed deposits are likely to fail as productive assets. And, it doesn’t matter how safe FDs are if they don’t help you meet your desired goals.  Mutual Funds offer you a safer opportunity to invest in stocks, especially if you don’t have the financial knowledge. Moreover, you don’t have to stress your pocket to invest. All you need is the magic of the 3Ps: planning, patience, and persistence! FAQs What is a Mutual Fund? A mutual fund is a financial trust that collects funds from investors and invests them into different instruments like stocks, bonds, and other money market instruments. How to invest in a Mutual Fund via the EduFund App? Step 1: Log in to the EduFund website or the EduFund app. Step 2: Complete your KYC and move ahead to create your investment account. Step 3: Choose the option of mutual fund investments. Step 4: Analyse your risk profile on the app by answering your household income and expense, the number of dependents you have, the highest level of maturity you have in terms of investments, your period of investment, and similar questions. Step 5: After answering the above questions, you will know what type of investor you are and the degree of risk you might be willing to take. The EduFund website or the EduFund app will suggest some mutual funds you might want to invest in, with a recommended SIP value. Step 6: Choose the fund and start investing. What is an FD? Fixed Deposits are the most popular and favored investment mode among Indian households. An FD allows you to put a lump-sum amount with the bank with a fixed interest rate and lay back for a good long period. Once the deposit matures, you can withdraw your money and enjoy the interest earned over the selected period. Consult an expert advisor to get the right plan for you TALK TO AN EXPERT