Fixed Deposit Schemes for Children

Various banks offer the best Fixed Deposit Schemes for Children in India. The parent/ guardian manages the Fixed Deposit (FD) accounts in the name of the child until they attain maturity age. Let us learn the top Child Fixed Deposit Plans with their major features and benefits in this article.

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What are Fixed Deposit Schemes for Children?

Child Fixed Deposit Plans are the direct and guaranteed returns investment schemes offered by Public/ Private Banks and Non-Banking Finance Companies (NBFCs). The investors earn a fixed interest rate on the principal amount for a predefined tenure to grow the corpus. 

The parent/ guardian can manage the account until the child reaches maturity age, after which, only the child can operate FD accounts under their name.

Fixed Deposit Plans for Children are the best way to boost their savings with safety and security.

Best Fixed Deposit for Child Plans

Let us learn the best FD Plans for Children offered by top Banks and NBFCs in India in 2023 from the table below:

FD for Child Plans Amount Tenure Interest Rate Loan Facility Auto-Renewal
PNB Balika Shiksha Scheme Up to Rs. 3000 Up to 18 years of age Same as normal FD rates Not available Available for 30 days
PNB Uttam Non-Callable Term Deposit Scheme Lump sum of Rs. 15 lakhs—No Limit 91 days to 10 years Decided by bank Discretionary to Bank Not Available
Yes Bank Fixed Deposit for Child Min. Rs. 10,000- No Limit 7 days to 10 years 3.25% p.a.-7.50% p.a.
  • Up to 90% of FD Amount
  • Only if FD amount is up to Rs. 2 crores
SBI FD for Child Rs. 1,000-No Limit 7 days- 10 years 3% p.a.- 7.10% p.a.
  • Up to 95% of FD Amount
  • Max loan amount: Rs. 5 crores
HDFC Bank Kids Advantage Account
  • Rs. 35,000 in Savings Account
  • Excess of Rs. 25,000 in Fixed Deposit
1 year, 1 day
  • 6.60% p.a. for Kids Advantage FD Account
  • 8.1% p.a. if FD Account bundled with Sukanya Samriddhi Yojana
-- Not Available
Canara Fixed Deposit Scheme Rs. 1,000- No Limit 7 days- 10 years 3.25% p.a.- 7.15% p.a. Up to 90% of FD Amount Available
ICICI Bank Money Multiplier FD Rs. 10,000-No Limit 1 year- 3% p.a.- 7.10% p.a. Up to 90% of FD Amount Available
Post Office Time Deposit Account Rs. 1,000- No Limit 1/ 2/ 3/ 5 years 6.6% p.a.- 7.0% p.a. Can be kept as a pledge Available on Application
Post Office 5-Year Recurring Deposit Account Rs. 100 per month- No Limit 5 years 5.8% p.a. 50% of RD Amount Extendable by 5 years on application
Sukanya Samridhi Yojana Rs. 250-Rs. 1.5 lakhs
  • At marriage of girl child, OR
  • Maximum 21 years after opening the account
7.6% p.a. NA NA
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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

    1. Maturity Amount Withdrawal:

      The beneficiary must submit the proof of 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

    2. 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

    3. Exclusions:

      • Private School students are excluded

      • Central Govt. School students are excluded

  2. 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:

    Eligibility Criteria Documents Required
    A parent/ guardian in the name of a minor child
    • ID Proof
    • Address Proof
    • Duly Filled Application Form
    • 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 same as the regular FD plan.

    • Inter-operability: The account holder can manage their FD account online as well as with 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.

  3. 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

  4. 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:

    Eligibility Criteria Details
    Beneficiary Girl Child
    Entry Age Below 10 years of age
    Exit Age Up to the marriage age of the girl child after 18 years of age
    Maximum No. of SSY Accounts
    • Max. of 2 girls in a family
    • More than 2 SSY accounts in a family are allowed if girls are twins/triplets
    • 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

    • 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 extreme grounds of compassion

  5. 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:

    Eligibility Criteria Details
    Entry age Above 10 years of age
    Maximum Time Deposit Accounts Any number of accounts for one accountholder

    Post Office interest rates for the fixed deposit for Child (1 Jan 2023 – 31 March 2023)

    Period of FD for Child Interest Rates
    1-year 6.6% p.a.
    2-year 6.8% p.a.
    3-year 6.9% p.a.
    5-year 7.0% p.a.
    • Interest is credited annually to the FD account

    • Tax Benefits with 5-year FD for Child: Provides tax deductions u/ Sec. 80C of the Income Tax Act, 1961.

    • Less interest is payable on premature closure of the Post Office Time Deposit (TD) Account

    • TD Balance as Collateral/ Security can be kept with the following institutions:

    • Indian President

    • State Governor

    • Reserve Bank of India/ Scheduled Commercial Banks/ Co-operative Societies/ Cooperative Bank

    • Public Sector Units (PSUs)/ Government Companies/ Local Govt. Authorities

    • Housing Finance Companies (HFCs)

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Documents Required

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 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 Fixed Deposit Plan for Child

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

  • FD for a Child can be bought for as young as a 1-year-old

  • Best fixed deposit plans offer high-interest rates in the range of 7.00 - 8.20% p.a.

  • A fixed deposit plan for a child offers risk-free, guaranteed returns upon maturity

  • Fixed deposits come with flexible tenures of 7 days to 10 years depending on the accountholder’s choice

  • A parent/ guardian can save and create more funds as per their long-term financial horizon

  • The child fixed deposit plans can be bought with a minimum initial amount

  • Investments are not required in regular frequency

  • You can create a financial net for your child’s education and major expenses

  • The fixed deposit for a child can be bought online and provides the facility to make hassle-free regular payments in a few clicks

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To Conclude

Various banks and Non- Banking Finance Companies (NBFCs) offer the best FD Plans in India to help financially secure the future of your child. A good corpus is a boon in times of need for a family.

The benefits of buying a fixed deposit plan for your child are countless in crucial situations. However, before deciding upon the best FD Plan for your child, it is important to gain complete information about the fixed deposit.


  • What is Post Office Scheme 2023 for children?

    Post Office Fixed Deposit for Child Scheme 2023 are as follows:
    • Sukanya Samriddhi Yojana: For a girl child below 10 years of age, at an interest rate of 7.6% p.a.
    • Post Office Time Deposit Account: For a minor above 10 years of age, at an interest rate of 6.6%-7.0% p.a.
    • Post Office 5-year RD Account: Tax benefits on investment and interest amount, and earn interest at 5.8% p.a.
  • Which is better FD or Sukanya Samriddhi Yojana?

    To create a good financial corpus for a girl child government-backed Sukanya Samriddhi Yojana offers a high interest rate with tax-deduction benefits. The best FD Plans for Child also offer high interest at rates of 6% p.a. to 8.20% p.a. Tax-saving FDs offered by banks also come with tax benefits u/ IT Act, 1961.
  • What is SBI Child Plan Fixed Deposit?

    SBI Fixed Deposit for Child Plan is one of the best FD plans that helps the parent/guardian to secure their future financial needs. You can start an FD with a minimum investment of Rs. 1,000 for a period of your choice between 7 days to 10 years. The FD Plan for Child offers an interest rate ranging between 3 – 7.10%.
  • Which fixed deposit is best for kids?

    The list of best Fixed Deposit for Chid plans is as follows:
    • PNB Balika Shiksha Scheme
    • PNB Uttam Non-Callable Term Deposit Scheme
    • Yes Bank Fixed Deposit for Child
    • SBI FD for Child
    • HDFC Bank Kids Advantage Account
    • Canara Fixed Deposit Scheme
    • ICICI Bank Money Multiplier FD
    • Post Office Time Deposit Account
    • Post Office 5-Year Recurring Deposit Account
    • Sukanya Samridhi Yojana

*All savings are provided by the insurer as per the IRDAI approved insurance plan.
*Tax benefit is subject to changes in tax laws. Standard T&C Apply
#The lumpsum benefit is calculated if policyholder invested ₹10000 monthly for 10 years in the fund with a policy term of 20 years. This Point To Point past performance data of last 10 years has been used to illustrate a scenario for the customers benefit. It is assumed that the past 10 years returns would have also been delivered in last 20 years. This is not guaranteed and not in anyway indicative of what the customer may actually get 20 years from now. The investment is subject to market risk and the risk is borne by the policyholder.
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^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.

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