3 Best Fixed Deposits to Invest for your Child

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Fixed Deposits

Why do we earn money? We do so to meet our needs and moreover to provide for our family. A certain part of these earnings is dedicated to the daily functioning, another part to luxuries purchased occasionally and the rest is set aside for the future. Working individuals want to ensure the best future to their children. 

This can be done by making sure they are qualified enough and eventually become financially independent. But, now, with the concept of investments becoming a part of every household, this process starts early. It involves keeping money in a scheme for longer time periods at a good return to give rise to a large corpus for the child. 

When longevity, security and good returns are necessary; then one investment option stands out. This is a Fixed Deposit (FD). FDs are the most trusted source of finance because they are institutionalised too a great extent. After knowing which investment instrument to choose, the challenge lies in making a decision about which company to go with. 

Following are the 3 Best Fixed Deposits to invest in for your child: 

1. Canara Bank: Being one of the famous commercial banks, their Child FD is one to surely consider. Apart from providing good assurance of security of funds, the Canara Bank child FD has flexibility when it comes to tenors. It allows one to invest for periods ranging from a week to 10 years. The minimum deposit fee is a very convenient Rs 1000 while there is no cap on the maximum amount. The interest rate however is an average 5.50% for the long-term periods like a decade. 

2. HDFC Bank: One of the pioneers of the Indian finance market, HDFC Bank is surely an ideal candidate for the best child FDs. They not only have many types of FDs tailored for each possible requirement of an individual but also provide flexibility like Canara. From the deposit tenors to minimum amounts, HDFC too stands at par with Canara. In the interest rates, it too has a highest rate of 5.50% for non-senior citizen depositors. 

3. Bajaj Finance: Despite being a non-banking finance company, Bajaj Finance is by far the best option for a Child’s fixed deposit. There are several reasons for this which include: 

  • Tenor: The minimum tenor is 1 year and maximum is 5 years for an FD at Bajaj
  • Interest Rates: They range from 5.65% to 6.75%
  • Deposit: A minimum deposit of Rs 25,000 only is required
  • Online Payment Options: Both, Unique Payment Interface (UPI) and Net-banking options are available 
  • Unique Selling Point: The entire process from end to end is paperless, thus it can be done from the safety of your home

Benefits

High Interest Rates: At Bajaj Finance, you receive a very lucrative interest rate of 6.50% which increases to 6.75% if you are a Senior Citizen (60 years of age or more). This allows you to grow your wealth at a very good rate while assuring safety of your money. In corporate fixed deposits, this is the best you’d get among the reputed companies.

Special offers to Senior Citizens: Bajaj FDs value and understand their senior citizen account holders. Thus, along with a higher interest rate they can also avail periodic pay-outs to fund general expenses that arise at their age. Thus, this does away with the myth that corporate FDs as an investment option aren’t suitable for the elderly.  

Benefits to Pravasi Bhartiyas (NRIs): For Non-Residential Indians (NRIs), Overseas Citizens of India (OCIs) and Persons of Indian Origin (POIs); the FDs at Bajaj Finance are a great investment opportunity and alternative. With an NRO account, they can make a choice between tenors of 12 and 36 months. The interest rates are the same for them including the additional benefits given to Senior Citizens. 

Systematic Plan for Depositors: The Systematic Deposit Plans (SDPs) launched by Bajaj allow people to make deposits on regular intervals, keeping in mind the erratic availability of funds. In this, the tenor still remains between 12 and 60 months. Depositors have to choose between 6 to 48, for the number of deposits they’d make in a month under their SDPs at Bajaj FD. When it comes to the maturity, they have an option to choose a single date or a monthly maturity scheme. This way they can ascertain long term and distinguish them from short term goals while making a decision. 

High Credibility and Stability: Bajaj Finance is a safe option for FDs and any other investment instruments, irrespective of the risk involved, that you look at. It has been accredited with the highest ratings of CRISIL’s FAAA and ICRA’s MAAA, ensuring your money and funds are safe. 

Flexible Time Frames: By having a wide range of tenors between 12 and 60 months, you can plan your liquidity and generate higher cash inflows as per your requirements. Bajaj FDs allow you to suit your investments as per your individual financial status quo. 

Fixed Deposit Interest Rate Calculator: Imagine if you could actually see the future, sounds great right? With this tool offered by Bajaj Finance, you can know the exact returns even before investing. You just have to fill in some important details like tenor, amount of deposit, etc.

Smaller Minimum Deposit: With a cap of only Rs 25,000 you can start investing in FDs, at an early stage without being forced to accumulate a larger set of funds. This way, even with a small investment you can secure your future. 

Digitalized Application Process: At Bajaj, the policy has always been to stay up to date with the need of the hour and to provide the most convenient service to customers. Their application prevents you the hassle of page long documents and even longer queues. It allows you to browse the best rates from the safety of your homes while completing the entire process digitally. 

Online Loan against FD: The main concern of a depositor when it comes to an FD is, what if he/she has to break it. Therefore, at Bajaj depositors are allowed to take a loan against the FD (post the initial lock-in period of 3 months) when they need to make emergency withdrawals. The only condition is that the loan value cannot exceed 75% of the FD value. 

Auto-renewal: While having automatic and unconsented renewals is scary, Bajaj gives you the option to opt for an auto-renewal to save you the time and effort of manually filling the renewal forms repeatedly. 

Therefore, to provide your child and his/her future with growth, security and assurance Bajaj Finance Child fixed deposit is the best investment option.