FD Scheme for Children: A Secure Investment
Every parent dreams of securing their child’s future—be it for higher studies, a wedding, or unexpected life events. Fixed Deposits (FDs) offer one of the most dependable ways to build that financial cushion.
With assured returns, minimal risk, and flexible tenors, FDs are perfect for long-term planning. Bajaj Finance offers attractive fixed deposit interest rates—up to 6.95% p.a. for regular investors and up to 7.30% p.a. for senior citizens—making them a smart, stable choice for your child’s future.
What is a Children's Fixed Deposit Scheme?
A children fixed deposit scheme is typically a deposit account opened by a parent or guardian for a minor. The lump-sum investment earns a fixed interest over a specified tenure. Though certain banks or NBFCs offer FDs specifically for minors, Bajaj Finance allows customers to open standard fixed deposits that can serve the same purpose for future child-related expenses like education or healthcare.
Importance of Fixed Deposits for Children
Even without a dedicated children’s scheme, investing in a standard FD for your child’s future provides many benefits:
- Secure Savings: Fixed deposits offer capital protection and assured returns, making them ideal for conservative investors planning for their children.
- Future Planning: The maturity amount can be aligned with major life events—like school admissions or college fees.
- Financial Discipline: It helps instil a habit of long-term saving among parents and guardians.
- Reliable Growth: Interest is fixed, offering predictability despite market volatility.
Features of Bajaj Finance FD for Long-Term Savings
Though not exclusively designed for children, Bajaj Finance Fixed Deposits offer a secure and rewarding option to plan for a child’s future needs.
Competitive Interest Rates
Bajaj Finance offers attractive interest rates:
- Up to 7.30% p.a. for senior citizens
- Up to 6.95% p.a. for non-senior citizens
These rates help investors grow their savings steadily over time.
Flexible Tenure Options
Tenures range from 12 to 60 months, allowing parents to tailor the FD to suit their financial milestones—such as when their child turns 10, 15, or is ready for college.
Interest Payout Flexibility
Bajaj Finance offers multiple payout options—monthly, quarterly, half-yearly, annually, or at maturity—based on your financial needs. This is ideal if you need regular income for education expenses or want to reinvest the returns.
High Safety Ratings
Rated AAA by CRISIL and ICRA, Bajaj Finance Fixed Deposits are among the safest in India, giving you peace of mind that your investment is secure.
Things to Consider When Choosing an FD for Children
- Interest Rate: Choose a plan that offers competitive returns to beat inflation.
- Tenure: Match the tenure with your child's financial goals.
- Payout Option: Choose based on whether you need regular income or a lump sum at maturity.
- Premature Withdrawal: Be aware that there is a penalty for early withdrawals.
- Credibility: Always choose institutions with high safety ratings for FDs. For example, AAA rates FDs by Bajaj Finance.
Advantages of Fixed Deposits for Children's Future
- Predictable Returns: Fixed deposits are not subject to market fluctuations.
- Nomination Facility: You can nominate a child to ensure smooth transfer of funds.
- Compounding Benefit: Reinvesting interest can grow your corpus faster if you opt for a cumulative plan.
How to Open an FD with Bajaj Finance
1. Click on ‘Open FD' at the top of the Fixed Deposit Page on the Bajaj Finserv website
2. Enter your 10-digit mobile number and verify the OTP sent to your phone.
3. Fill in the investment amount, choose the investment tenure and the payout frequency. Enter your PAN card and date of birth.
4. Complete your KYC: If you are an existing customer, confirm the details available with us, or edit to make any changes. For new customers, complete your KYC using Aadhaar.
5. A declaration will be displayed. Please read it carefully and agree to the terms and conditions. Enter your bank details and proceed to pay.
6. Complete your investment using NetBanking/ UPI or NEFT/ RTGS.
Once your fixed deposit is booked, you will receive the Fixed Deposit Acknowledgement (FDA) on your registered email address and as a link on your mobile number. An Electronic Fixed Deposit Receipt (e-FDR) will also be sent to your email ID within 3 working days (subject to documents being in the correct order).
Conclusion
Bajaj Finance remains one of the best options for long-term financial planning. With high interest rates of up to 7.30% p.a., flexible tenures, and solid safety ratings, it’s an excellent way to build a financial cushion for your child’s future. Choosing a fixed deposit through a reliable NBFC helps cultivate disciplined saving habits while ensuring the funds grow securely over time.
