A fixed deposit or FD is a savings and investment instrument that lets you grow your money safely and securely. Fixed deposit accounts can be opened for both adults and minors. But how is an FD helpful for a minor child?
Educating a child today requires significant funds for which you must make smart investment decisions. You would prefer low-risk investments with a lot of volatility in your investments. For that, an FD for your child could be the best investment instrument.
Insurer pays your premiums in your absence
Invest ₹10k/month and your child gets ₹1 Cr tax free*
Save upto ₹46,800 in tax under Section 80(C)
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
Invest ₹10k/month your child will get ₹1 Cr Tax Free*
SBI provides multiple child plan FDs to choose from, depending on your investment style. These FD plans include SBI Flexi Deposit, Special Term Deposit, Annuity Deposit Scheme, Multi Option Deposit.
The Flexi Deposit offered by SBI works like a recurring deposit giving its customers the option to invest a minimum of ₹500 per month or ₹5,000 per year. The customers also have the flexibility to choose increasing the deposit amount during each instalment.
Besides, they can also increase or decrease the number of instalments. The bank however limits the amount to Rs 50,000 that you can deposit in a year.
The features and benefits of investing in the SBI Flexi Deposit are:
The eligibility criteria to invest in SBI Flexi Deposit are:
A valid identity proof and address proof is required to open an SBI Flexi Deposit account, such as:
The Special Term Deposit is a variation of the regular term deposit. With a regular term deposit, you get your interest at a regular frequency throughout the FD tenure. With the Special Term Deposit scheme, you get all your interests at the time of maturity.
The Special Term Deposit adds your regular interests to your principal amount and compounds your money throughout the FD tenure.
The features and benefits of investing in the SBI Special Term Deposit are:
The eligibility criteria to invest in Special Term Deposit are:
A valid identity proof and address proof is required to open a Special Term Deposit account such as:
The SBI Annuity Deposit Scheme provides the depositor with a monthly income. The depositor has to make a lump sum deposit. After this, a fixed sum will be decided wherein the depositor receives that in the form of monthly instalments. This instalment will include the principal amount and earned interest.
The features and benefits of investing in the SBI Annuity Deposit Scheme are:
The eligibility criteria to invest in SBI Annuity Deposit are:
A valid identity proof and address proof is required to open an SBI Annuity Deposit account, such as:
SBI Multi Option Deposit Scheme or MODS provides you with a service that you usually don't get with a regular FD without paying penalties. The regular FDs do not let you withdraw money before maturity without paying the penalty.
With MODS, your term deposit is linked with your savings or current account wherein you can withdraw money in multiples of ₹1000. The rest of the balance will continue to earn interest.
The features and benefits of investing in the SBI Multi Option Deposit Scheme or MODS are:
The eligibility criteria to invest in SBI Multi Option Deposit Scheme are:
A valid identity proof and address proof is required to open an SBI MOD account, such as:
SBI can provide you with multiple FD schemes to choose your adequate plan. These plans can help you save money for your child’s higher education. However, you must consult the bank or conduct a thorough research to know additional terms and conditions.
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