The SBI Child Plan Fixed Deposit is a scheme that offers risk-free investment options to secure the financial future of young ones. The SBI is a public sector bank owned and operated by the government of India for the benefit of its citizens. The schemes offer a decent return with varying interest rates for different sections of society. The SBI has structured specific schemes aimed at nurturing women and children.Read more
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Save ₹10k/month and your child gets ₹1 Cr tax free*
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The SBI child plan fixed deposit is a child-friendly plan catering to the needs of the children. The parents who desire to secure their children financially can opt for fixed deposit schemes that compound their money in a low-risk environment. The bank issues the interest rate in line with the Reserve Bank of India.
The scheme ensures the need to address the child’s milestones which includes education, marriage and entrepreneurship. This type of fixed deposit is preferred because of its simplicity and risk-averse nature.
The SBI Term deposit is also available for children and young adults who are preparing for their future. The tenure of the scheme customized for children and women is flexible with no lock-in periods. The scheme can be utilized for long-term investments and as an emergency fund as it can be withdrawn with short notice.
The schemes offered by the SBI is a win-win condition for all the investors irrespective of the age group and profession. The SBI FDs provide guaranteed returns to the depositor who looks to safeguard his future along with his family.
Some of the benefits of the FDs are as follows:
The fixed deposit schemes offer a moderate to low return for the depositors, excluding the risk factors. The fixed deposits have guaranteed returns based on the interest rates that vary depending on the basis points decided by the Reserve Bank of India. The depositor's capital is compounded slowly and consistently by eliminating the risk factor.
The SBI Fixed deposit schemes also offer the depositors to add nominees or beneficiaries who would gain from unprecedented events such as the depositor's death. The nominees can claim the deposited sum and stay protected during uncertain times. The depositor can nominate their spouse or children to enjoy the added protection provided to his family by the scheme.
The SBI Fixed deposits provide varying interest rates depending on the depositor's age, gender, and economic contribution. The SBI Child Plan Fixed Deposit offers one of the best interest rates for children, teenagers and minors.
The SBI offers an automated facility to renew the deposit term. The depositor can opt for auto-renewal at the time of investing the capital in the bank. The invested capital on completion of its term will automatically be renewed for the next tenure. The investor can save time and effort by opting for the auto-renewal option.
The SBI FD schemes such as child plan and senior citizens plan offer tax benefits where the capital gains below a specific limit are tax-free. The investors can benefit from such schemes as they help in wealth creation. The investors need to examine the tax benefits of other SBI FD plans before proceeding to invest in them.
The SBI Child Plan FD can be opened in two ways. The first method is an online method and the second method is the traditional offline method. The procedure to open the Child plan fixed deposit online is as follows.
The pre-existing condition to open the online account is that the investor must access SBI internet banking with valid login credentials.
The steps to open the SBI Child Plan FD account are as follows:
The investor with the traditional approach can visit the nearest SBI bank branch and get in touch with the representatives who will assist him in opening the FD account for his child. The investor must carry all the mandatory documents required for the account opening.
The documents needed to open the Child Plan FD account are as follows:
The investor must note that the above list of documents may be changed as per the bank's requirement. Please contact the bank branch to get more information related to the FD products.
The fixed deposit schemes are suited for different types of investors with various motives. The SBI Child Plan FD caters to the needs of the children as they become adults. Investors with a less-risk appetite can opt for fixed deposit schemes as it is not as volatile as the investments made in the capital markets and bond markets.
The investor can have peace of mind knowing well that his investments are insulated from volatility. If invested for a long duration, the Child Plan FD can provide steady returns to meet the child's future financial needs.
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