Earn interest up to 8.60% p.a. by investing in a Bajaj Finance Fixed Deposit | Rated CRISIL AAA/ STABLE and [ICRA]AAA(stable) Invest Now

Parents play the most crucial role in their children’s lives as they support them all through the formative years and beyond. Typically, this also involves ensuring financial security for the child so that they can achieve their future goals. 

 

Additionally, saving up funds provides peace of mind to parents as it helps them meet other objectives too. One of the most common ways a parent can ensure their ward’s future is by investing in a fixed deposit scheme for their child. 

 

With a fixed deposit for kids, parents can ensure that their investment is safe and secure. It offers steady, assured returns on your investment in the form of interest. The principal amount and interest earned can be withdrawn easily on maturity.

 

You can invest in a children’s FD plan even when they are just a year old. Subsequently, investing an FD on a child’s name at high rates can ensure that you yield high returns and have a substantial corpus at maturity. Among these FDs is the Bajaj Finance Fixed Deposit. 

 

To learn more about the features and benefits of investing in this FD in the name of minor, read on.

Why Invest in Fixed Deposit for Children?

When an FD for a new-born baby or a minor is started, either parent can be named a guardian. Bajaj Finance FD offers an appealing fixed deposit scheme for children. Listed below are the benefits of investing in a child FD plan with Bajaj Finance FD on Bajaj Markets.

  • Higher Rate of Interest on FDs

With a Bajaj Finance Fixed Deposit for a child, an investor can obtain high FD interest rates that range from 7.11% up to 8.35%. This rate of interest is typically higher than what banks and most NBFCs offer. 

 

The higher rate of interest offered by Bajaj Finance FD inevitably leads to higher returns upon maturity of your FD. 

  • Assured Returns

Fixed Deposits are among the safest forms of investment. It enables you to secure your child’s financial future with ease. With a Bajaj Finance FD, you are guaranteed to receive the initial lump sum investment along with the returns upon maturity. 

 

On turning 18, all the responsibilities shift to the child, and he/she becomes solely responsible for the handling of the fixed deposit.

  • Flexible Tenor

Bajaj Finance FDs offer flexible tenors which range from 12 months to 5 years. This allows a parent to plan for their child’s future needs accordingly. You can also use an online FD calculator on Bajaj Markets to compute your returns against the available interest rate over a specific period.

  • Online Investments

You can choose to invest in a Bajaj Finance FD online with just a few clicks on your computer. This process saves time and allows a parent the opportunity to decide the type of child FD scheme to invest in. 

  • Low Minimum Deposit Amount

High inflation may make it difficult or strenuous to simply rely on savings for your child’s future. However, with a Bajaj Finance FD, you can invest a minimum of ₹15,000 to begin your investment in a child fixed deposit plan. You can also opt for a systematic deposit plan to invest ₹5,000 each month.

 

Given below is a listing the Bajaj Finance FD rates to give you an overview of why it can be one of the best fixed deposit plan for child. 

 

fd for children

Fixed Deposit Annualized rate of interest for non-senior citizens Valid for deposits up to ₹5 Crores (w. e. f 10th May, 2023)

Non-Senior Citizen FD Rates

Tenor (months)

Minimum Deposit

Cumulative At Maturity (p.a.)

Non-Cumulative

Monthly 

(p.a.)

Quarterly 

(p.a.)

Half Yearly 

(p.a.)

Annual 

(p.a.)

12 – 14

₹15,000

7.40%

7.16%

7.20%

7.27%

7.40%

15 – 23

7.50%

7.25%

7.30%

7.36%

7.50%

24

7.55%

7.30%

7.35%

7.41%

7.55%

25-35

7.35%

7.11%

7.16%

7.22%

7.35%

36 - 60

8.05%

7.77%

7.82%

7.89%

8.05%

Special Tenure FD Rates for Non-Senior Citizens

Tenor (months)

Minimum Deposit

Cumulative At Maturity (p.a.)

Non-Cumulative

Monthly 

(p.a.)

Quarterly 

(p.a.)

Half Yearly 

(p.a.)

Annual 

(p.a.)

15

₹15,000

7.45%

7.21%

7.25%

7.32%

7.45%

18

7.40%

7.16%

7.20%

7.27%

7.40%

22

7.50%

7.25%

7.30%

7.36%

7.50%

30

7.45%

7.21%

7.25%

7.32%

7.45%

33

7.75%

7.49%

7.53%

7.61%

7.75%

44

8.35%

8.05%

8.10%

8.18%

8.35%

*Disclaimer: The FD rates mentioned above are effective as of 10th May, 2023 and are subject to change without notice as per the NBFCs discretion.

How to Start an FD for Children?

The process of investing in FD for a minor is just as simple as that of investing for an individual. Once you have finalised the investment tenor and amount you want to invest in an FD for a new born baby boy or girl, follow these steps:

  • Visit the FD issuer’s branch or office

  • Talk to a representative about want to invest in an FD for minor

  • Complete your and your child’s identity verification

  • Submit the necessary documents 

 

After you have submitted the documents, the issuer will verify those before approving the request. Post approval, the account will be active and you will be the responsible account holder until the child becomes an adult.

Types of Child Fixed Deposit Plans

The types of fixed deposit scheme for children depend on the issuer you choose. Different issuers offer different schemes with varied benefits to ensure that you get the most from your investment. With a Bajaj Finance FD, you can invest in any of the following schemes:

  • Term Deposit

With a minimum investment amount ₹15,000 , and a flexible tenor going up to 60 months, you can make the most of the compounding power of the FD. 

  • Systematic Deposit Plan (SDP) – Single Maturity Scheme (SMS)

If you prefer a monthly deposit investment instead of lump sum, this scheme allows you to do that while ensuring that you get maximised returns. In this, you need to make a minimum monthly investment of ₹5,000 for a period of up to 5 years.

 

The principal invested and the interest earned will be paid at maturity. Moreover, new FD rates will be applicable for every monthly instalment. 

  • Systematic Deposit Plan (SDP) – Monthly Maturity Scheme (MMS)

Like the Single Maturity Scheme, this scheme too allows you to make monthly investments for the predetermined tenor. The FD rates for each monthly investment are determined by the prevailing rates for that month. 

 

However, in this scheme, the interest earned is paid out every month and the principal amount is paid at maturity.

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Eligibility Criteria for FD for Children

The eligibility for investing in an FD in the name of a minor depends on the FD issuer you choose. Generally, issuers require the minor to be between the age of 1 – 15 years. Additionally, the account holder should also be a parent/ legal guardian above the age of 18. 

 

To ensure that you and your child meet all the eligibility criteria and can invest seamlessly, check the issuer’s website or call the customer support team. A majority of issuers have the list of documents required and the eligibility criteria on their website. 

How to Withdraw the Fixed Deposit for Children

The withdrawal process of an FD in the name of minor may vary depending on the FD issuer and the type of FD you choose. Generally, FD issuers have the following terms making withdrawal from an FD for minor accessible:

  • The minor has turned 18

  • If the minor is a girl, she should complete the minimum years of education (generally 2) after the date of investment

  • If the minor is a boy, he should have completed and cleared his class 10 exam

 

Check the exact withdrawal process by visiting the issuer’s website, contacting their customer care, or visiting the branch. Alternatively, you should also check the premature withdrawal process to ensure that you can get access to the fund, if needed. 

Should you Invest in an FD for Your Child’s Future?

With the cost of education, healthcare, and other essentials on the rise, it is important to ensure financial security for your child. Thus, FDs are an ideal investment avenue for guaranteed, risk-free returns. 

 

Investing in a Bajaj Finance FD for a minor is an ideal option as you can earn attractive FD interest rates that go up to 8.60%.  You can also pick the tenor of your choice to plan your investment specifically. Invest in a Bajaj Finance FD on Bajaj Markets today! 

 

To help you understand better about the return you would earn for different tenors, you can use the FD monthly interest rate calculator. This tool performs complex calculations instantly for multiple tenors, interest rates, and investment amounts, thus saving your effort, time, and ensuring that you choose the best fixed deposit plan for children.

Disclaimer

The information provided by BFDL herein above is related to the Non-Partnered Banks/ NBFCs and is just for the purpose of information and under no circumstances the information provided hereinabove is intended to be source of advice or recommending any financial investment advice or endorsement of any sort.

The information including interest rates with regard to fixed deposit, provided on this website is gathered through publicly available sources over the internet and is considered as accurate and reliable to the best of our knowledge. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes etc. as well as offers by the Non-Partnered Banks. The use of information set out is entirely at the User’s own risk and User should exercise due care prior taking of any decision, on the basis of information mentioned hereinabove. You are advised to visit/ contact the respective Banks/ NBFCs to verify the information before making any investment or opening an account. Further, BFDL does not undertake any responsibility or liability to update this information. YOU ARE SOLELY RESPONSIBLE FOR ANY LIABILITY OR DAMAGE YOU INCUR THROUGH ACCESS TO OR USE OF THE SITE OR SUCH INFORMATION OR MATERIALS EXCEPT WHERE THE LAWS AND REGULATIONS OF A PARTICULAR JURISDICTION CONCERNING WARRANTIES CANNOT BE WAIVED. Additionally, display of any trademarks, tradenames, logo and other subject matters of intellectual property owners. Display of such Intellectual Property along with the related product information does not imply BFDL’s partnership with the owner of the Intellectual Property of such products. 

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FAQs

Yes. An FD on your child’s name is taxable.

Minors can get the funds from their child FD plan when they turn of the legal age, i.e., 18 years or when the investment tenor ends.

The best fixed deposit plan for a child depends on your purpose of investing. Different issuers offer schemes with different benefits that can be catered as per your needs. You can browse through the plans by visiting the issuer’s website.

To choose the right option, you should check the rates offered for the required tenor and pick accordingly. You can use an FD calculator to know if the investment terms and issuer policies align with your goals.

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