Fixed Deposit Schemes for Children

What are Fixed Deposit Schemes for Children?

Fixed Deposit schemes for children are guaranteed returns investment schemes offered by banks and post offices where parents or guardians can deposit money on behalf of their child. These schemes provide a secure and steady way to grow your child's savings with guaranteed returns. The money invested earns a fixed interest rate for a specific tenure, and upon maturity, the child receives the accumulated amount, which can be used for their education, marriage, or other future goals. Starting early builds the habit of saving and provides a strong financial foundation for your child's future.

Best Fixed Deposit for Child Plans^≈

Let us learn the best FD Plans for Children offered by top Banks and NBFCs in India in 2026 from the table below:

Disclaimer: ≈ Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. The sorting is done in alphabetical order (Fund Data Source: Value Research). For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in

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FD Schemes for Children in Detail

1. PNB Balika Shiksha Scheme

   PNB provides this safe and simple guaranteed returns scheme for girls to secure finances for their education and marriage.

   The features and eligibility criteria of this Child Fixed Deposit Plan are as follows:

   Eligibility Criteria	Details
   Marital Status	Unmarried Girls
   Age Criteria	Less than 16 years (as of 31st March) while entering Class IX
   Educational Criteria	Kasturba Gandhi Balika Vidyalayas: Class VIII girls enrolling on Class IX State/ UT Govt. and Local Bodies/ Govt. Aided Schools: Class VIII girls enrolling in Class IX

   Investment

   Secure

   

   Secure your child’s future with or without you

   Start Investing

   ₹10,000/Month

   & Get

   ₹1 Crore^*

   VIEW PLANS

   *Standard T & C Apply

2. Maturity Amount Withdrawal:

   The beneficiary must submit proof of the following conditions:

   • Passing Certificate for Class X Board Exam

   • Proof of attaining the age of 18 years

   • Certificate by School Principal/ Head for continuous studies of 2 years in Class IX and X

   • Premature Cancellation of FD plan:

     • Normal Conditions: Not allowed in normal conditions

     • Death of Beneficiary Before Age of 18 Years: Amount transfers to the Government of India

   • Exclusions:

     • Private School students are excluded

     • Central Govt. School students are excluded

3. PNB Uttam Non-Callable Term Deposit Scheme

   Eligibility

   • Individuals (single or joint account holders)

   • Minors aged 10 years and above

   • Proprietorship/Partnership Firms

   • Commercial Organizations/Companies/Corporate Bodies

   • Hindu Undivided Family (HUF)

   • Associations, Clubs, Societies, Trusts, Religious/Charitable/Educational Institutions

   • Municipality or Panchayat

   • Government or Quasi-Government Bodies

   • Illiterate and blind persons

   Deposit Amount

   • Minimum single deposit: Rs. 15 lakh

   • Subsequent deposits in multiples of Re. 1

   Deposit Period and Interest

   • For deposits from Rs. 15 lakh to Rs. 10 crore:

     • Maturity option: 91 days to 120 months

     • Income option: 6 months to 120 months

     • Interest rate: Card rate as per bank guidelines

   • For deposits above Rs. 10 crore:

     • Maturity option: 91 days to 1 year

     • Income option: 6 months to 1 year

     • Interest rate: As advised by the treasury division (DRI rates) - requires HO treasury permission

   • Interbank Deposits above Rs. 10 crore:

     • Maturity option: 91 days to 1 year

     • Interest rate: As advised by the treasury division (DRI rates) - requires HO treasury permission

   Interest Options

   • Income Option: Interest paid monthly, quarterly, half-yearly, or yearly.

   • Monthly interest paid at discounted value.

   • Quarterly compounding for half-yearly and yearly interest payments.

4. Maturity Option: Interest compounded quarterly, payable on maturity.

5. Other Features

   • No conversion option.

   • No auto-renewal.

   • No premature withdrawal, part withdrawal, or extension except in cases of death, bankruptcy, winding up, or court orders.

   • Demand loan or overdraft facility available at the bank's discretion.

   • Maturity value calculated on quarterly compounding basis for maturity option deposits.

YES Bank Fixed Deposit for Child

Yes Bank FD for Child helps parents to provide an adequate financial net for their children. Let us learn their features in the list below:

• Tax Benefits: The 5-year tax-saving FDs for Child provides the benefit to get tax deductions under Section 80 C and 10 (10D) of the IT Act, 1961. In addition, you keep earning the interest benefits like the regular FD plan.

• Inter-operability: The account holder can manage their FD account online and at their nearby YES Bank branch.

• No Penalties on Early Exit: YES Bank do not levy any penalty if you break your FD for Child early before the expiry of the tenure.

HDFC Bank Kids Advantage Account

HDFC Kids Advantage Account is amongst the best Fixed Deposit for Child Plans that help parents secure their child’s financial future. The plan also educates the children to manage their funds.

Let us learn the major features of this child fixed deposit plan in the list below:

• Education Insurance: Free coverage of Rs. 1 lakh in case of demise of the parent/ guardian in an accident

• Auto-Debit from Parent/Guardians Savings Account: The auto-debit is monthly credited to the Kid’s Advantage Account

• MoneyMaximizer Facility: An excess amount from Rs. 35,000 is automatically made into a Fixed Deposit for the Child for 1 year and 2 day

• My Passion Fund: Guides the children to manage their own money with small periodic savings of Rs. 1,000 or more.

• Systematic Investment Plans (SIPs): The child can make small investments in mutual funds at a young age through the Investment Service Account

• The plan also bundles with Sukanya Samridhi Yojana

Sukanya Samridhi Yojana

Sukanya Samridhi Yojana (SSY) is a government–backed social scheme aiming to abolish gender discrimination, women empowerment, and girl-child protection. It is an FD scheme for a girl child that helps create a corpus for their education or other crucial expenses.

The key features of the Sukanya Samridhi Yojana are as follows:

• Allows only one SSY Account for one girl child

• Finance Ministry periodically updates the interest rate of SSY

• Interest is credited to the SSY account every year

• The maximum tenure of investment in Sukanya Samridhi Yojana: 15 years

• Tax Benefits on Investment: Income tax deductions allowed u/ Section 80C of the IT Act, 1961

• Tax Benefits on Interest: Tax-free u/ IT Act

• Partial Withdrawal: Up to 50% of the balance amount is allowed when the girl attains the age of 1 8 years or passes X-Class

• Premature Closure: On the death of the beneficiary or on extreme grounds of compassion

Post Office Time Deposit Account

Post Office Time Deposit is the most secure and best FD Plan for Child offered at high-interest rates. The features of Post Office Time Deposit are as follows:

Post Office interest rates for the fixed deposit for Child From 01.01.2024 to 31.03.2024

• You lock your money for a specific period, which can be 1, 2, 3, or 5 years.

• The interest rate is fixed at the time of deposit, ensuring a predictable income.

• Backed by the government, it's considered a low-risk investment.

• Typically, a low minimum deposit is required to open the account.

• No Maximum Limit. You can invest as much as you want.

• Deposits for a 5-year tenure qualify for tax deductions under Section 80C of the Income Tax Act.

• You can open joint accounts with up to three adults.

• Minors above the age of 10 can hold their own POTD accounts.

• You can nominate a beneficiary to receive the proceeds upon your demise.

• You can transfer your account to another post office.

• While generally not advisable, premature withdrawal is possible after six months, but with penalties.

• Interest is typically paid on maturity along with the principal amount.

Documents Required to Open Fixed Deposit Schemes for Children

The list of documents required to buy a Child Fixed Deposit Plan is as follows:

• Date of Birth of the minor child

• PAN Number of the Parent/ Guardian

• Voter ID/ Driving License/ Passport photocopy/ Aadhar Card of the Parent/ Guardian

• Address Proof of the Parent/ Guardian

How to Get a Fixed Deposit for a Child?

A parent/guardian can buy a Fixed Deposit for the child until the policyholder attains the maturity age of 18 years. The steps to open an FD for the child are as follows:

Step 1: Go to the official website, visit the branch, or apply through the Net Banking of the respective bank/NBFC

Step 2: Click on the Fixed Deposit section

Step 3: Enter the required details of the child and the parent/ guardian in the proscribed sections

Step 4: Upload the mentioned documents, photographs, and ID proofs, and complete your KYC

Step 5: Once the application is duly filled, the bank/ NBFC verifies the details provided by the applicant

Step 6: Upon verification of the provided proofs, a new Fixed Deposit for the Child is opened

Benefits of Buying a Fixed Deposit Plan for Child

Let us learn the benefits of a Fixed Deposit for Child Plan through the list mentioned below:

• Guaranteed returns: FDs offer a fixed interest rate, ensuring a predictable income stream.

• Capital protection: Your child's principal amount is safeguarded.

• Power of compounding: The interest earned can be reinvested, growing the corpus over time.

• Goal-oriented savings: You can plan for specific milestones like higher education or marriage.

• Variety of tenures: Choose a tenure that aligns with your child's financial goals.

• Minimum investment: You can start with a small amount and increase contributions over time.

• Potential tax savings: Interest earned on the FD might be taxed at a lower rate for the child.

• Early savings habit: Teach your child the importance of saving from a young age.

• Financial cushion: The FD can serve as a backup for unforeseen expenses.

To Conclude

Fixed Deposit schemes for children offer a secure and disciplined approach to saving for your child's future. By investing in these investment plans, you not only provide financial security but also build the value of saving early in life. Consider your child's age, financial goals, and risk tolerance when choosing a suitable FD plan. Remember, starting early gives your child a significant head start in achieving their dreams.