As a parent, you would want to give the best things in the world to your child. But what if you can give the best gift of their life for their future? Saving might have been a common term in your life, but what if you do not have enough funds for your child’s higher education or their life-changing moments?
The best solution for all these what-ifs is that you save for your child right from their birth! With schemes like PNB Balika Sikhsha Scheme, Allahabad Bank Sishu Mangal Deposit Scheme, and Fixed Deposit for Minor’s schemes, you can start saving for your child’s future right away. Also, financial companies offer a unique range of FDs for senior citizens, and FD for children apart from the standard FDs.
Why choose FD instead of other saving schemes?
In fixed deposits, you need to deposit once and leave the rest to the bank or the private sector until the tenure ends. You can renew your fixed deposit which can result in higher interest rates for your FD if you open your account with companies. The FD interest rates are higher than the interest rates of savings bank account and offer you assured returns to your investment in a hassle-free manner. If you plan to invest at the right time, FD is the best investment option for children. Funding for your child will ensure that your child gets the needed financial support in future in case of any emergencies.
How can you save for your child?
Penny bank
Inculcate the habit of saving money in your child right from the start by teaching them to save some of their pocket money in a penny bank. You can treat them with their favorite food or playtime at the end of the week to encourage them to save money and to teach them the importance and value of money. This way, your child will know the value of your savings and hard-earned money in future.
Children’s Savings Account
You can open a children’s savings account which can be managed by you until the child turns 18 years old. There are two types of savings account for children – Instant Access Account, and Regular Savings Account. The Instant Access account allows your child to withdraw money whenever needed. In a Regular Savings account, the child is supposed to save money each month for a decided tenure. If the child withdraws money before the term, the rate of interest may reduce. The savings account offers more rate of interest than the instant access account.
FD for Children
One of the most trusted and reliable ways to save money is to open fixed deposits. With a fixed return on your investment and higher interest rates than other savings account, FD for children is the best investment choice. A premature withdrawal can cost a minimal penalty which can be avoided by FD laddering. NBFCs offers a range of investment options for children with flexible tenors and FD interest rates of 7.85 %. FD is a hassle-free and efficient way to secure your child’s future financially and to make sure that your child leads a financially secure life.
