How Can I Open a Fixed Deposit for My Child?

How to Open a Fixed Deposit for Your Child?

There are two ways through which you can open a fixed deposit for your child – online and offline. Both the online and the offline processes are explained below.

1. Online Process

   It is very easy to open a fixed deposit for your child online as it saves time. You can also benefit from additional perks such as easy payments, easy renewals, and closure. The process may vary with different banks and financial institutions. Different banks have different methods on their websites to open a fixed deposit account. 

   Given below is a standard procedure to do the same.

   • Visit the website of the bank or Non-Banking Financial Company with which you want to open a fixed deposit account. The choice of a bank or NBFC should be up to your preference and suitability.

   • Register yourself using basic details such as full name, email ID, contact information, etc., required in the given fields. 

   • The next step is to log in using your registered ID. 

   • Go through the page and click on the option which would let you open a fixed deposit account.

   • At this point, you would be asked to provide more details regarding your preference of principal amount, account tenure, and nominee. Fill in all these details which are necessary to take the process further.

   • Confirm all the details which you have provided and proceed towards the online payment option.

   • Make your principal amount payment through net banking. 

   • In the end, you should download the receipt of the online payment for future reference.

2. Offline Process

   If you do not have access to an online platform to open a fixed deposit for your child, you can do so offline. The offline process does not require you to be an account holder in the concerned bank. 

   • The first step would be to visit the nearest branch of the bank or NBFC of your preference.

   • Ask for a fixed deposit application form.

   • Fill up the fixed deposit application form accurately.

   • In case you do not have an existing account in the bank, you also have to provide documents proving your identity and residence to complete your KYC.

   • Submit all the necessary documents required for opening a fixed deposit.

   • Submit the form along with the documents to the bank representative.

Eligibility for Opening a Fixed Deposit for Your Child

Every bank and NBFC has a distinct set of eligibility criteria for opening a fixed deposit account for minors. The basic criterion is given below.

If you fall under any one of the following categories, you are eligible to open a fixed deposit.

• Indian Resident

• Non-Indian Resident (NRI)

• Senior Citizens

• Minors 

• Sole Proprietorship

• Partnership Firms

• Limited Companies

• Societies

• Clubs 

• Hindu Undivided Family (HUF)

Documents Required for Opening a Fixed Deposit for Your Child

If you already have an account in the bank, you do not have to re-submit the following documents for opening a fixed deposit account for your child. If you are a new investor for the bank, you have to submit the following:

• Identity Proof: For identity proof, you can submit your Aadhaar Card, Voter ID, PAN Card, driving license, photo ration card, senior citizen ID card, etc.

• Address Proof: For address proof, you can submit your utility bills, bank statement with cheque, an identification card issued by the Post Office, etc.

In Conclusion

Fixed deposits for your child are a reliable way to secure their future financially. A fixed deposit offers financial assistance with low risk. They help you increase your savings with the help of a predefined interest rate. Fixed deposits allow you to withdraw your investment at the time of maturity when your child is an adult and needs those funds.

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