What are the Advantages of Investing in a Fixed Deposit for kids?

Saving money for the child is the prerogative of every parent. Among the many financial objectives, you would like to also secure your child's future

Saving money for the child is the prerogative of every parent. Among the many financial objectives, you would like to also secure your child’s future by fulfilling their educational, career, and entrepreneurial aspirations. However, when you invest in your kids, prefer only the instruments that provide a high ROI with the security for the investment.

Fixed deposits provide assured return on investment and they are also one of the best options for investors with a lesser risk appetite. You can open an FD account in the name of your child. The documents of the legal guardian that can be any one of the parents need to be submitted for verification purposes. Also, you will be authorized to handle the FDs until your child reaches the age mark of 18. Upon maturity, your child can either withdraw the money or keep it for earning higher returns in the future. The tax liabilities and other responsibilities regarding the FD need to be handled by the child once he/she reaches the age of 18. 

Here are some FD benefits that you can avail for your kids:

Sukanya Samriddhi Yojana

The government of India has started the SSY i.e. Sukanya Samriddhi Yojana for building a bright future for every girl child. As per this scheme, the parents of the girl child need to invest a minimum amount of Rs. 500 and a maximum amount of Rs. 1,50,000 every year. 

Withdrawing the interest along with the invested amount is possible after 21 years from the first investment date. Or else, the parents can use the money for the child’s marriage once she becomes 18 years old. The high interest rate and secure investment method make it a highly beneficial scheme for the girl child.

Higher returns 

The parents can invest in an FD scheme that earns interest at a high interest rate. For instance, Bajaj Finance Child FD is offering an interest rate of up to 6.75%. Saving substantial corpus as your child matures would be easy with this FD scheme

The benefit with Bajaj Finance FD is that you can lock in some corpus for the future and the remaining amount can be used to earn a yearly, six-monthly, quarterly, or monthly interest payout. These interest payouts can suffice the regular expenses like books, tuition fees, trip fees, etc. of your child. The multi-deposit facility provided by this FD scheme enables you to invest in both cumulative and non-cumulative FDs at once. 

Planning Finances 

Planning for attaining your future investment objectives becomes easy with Bajaj Finance FD. It is because you get a flexible tenor ranging from 12 to 60 months. Apart from that, evaluating the returns is possible by using the FD calculator integrated on the website of Bajaj Finance. 


Investing in Bajaj Finance Child FD is beneficial for your child since it is a secure investment option. Credit rating agencies like ICRA and CRISIL have confirmed this by providing high credit ratings to Bajaj Finance FD. Therefore, the investment for your child will remain safe irrespective of the market conditions and volatility. 

Also, you need not go anywhere for investing in this FD scheme as an online FD form will be available at your service. Complete the document authentication procedure online by sharing the CKYC number. Moreover, you also get a 0.10% extra FD interest rate for preferring the online way of investing in FD. 


Investing in fixed deposits is a safe bet among the other market-linked investments. You would like to save enough money for your child’s future expenses through FDs. SSY is a government-run scheme that facilitates the parents of a girl child to earn high interest in the long term. You can also invest in Bajaj Finance FD as it is providing the highest FD interest rates in the FD segment.

Apart from that, it allows you to open multiple FD accounts at once and enables you to plan smartly for the future by providing a flexible tenor and convenient tools like the FD calculator. It is also a safe investment as CRISIL and ICRA have rated it highly for providing stability to the investors’ capital.

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