![Fixed Deposit for Child](https://hackmd.io/_uploads/BJp6npCNR.jpg) As a parent or guardian, saving is an important part of financial planning to secure your child's future. By starting early, you can build a substantial corpus to fund important milestones of your child’s life, whether it’s higher education, their first house or wedding. On Bajaj Markets, you can explore Fixed Deposits (FDs) from leading financial institutions and enjoy attractive interest rates. **An Overview of Fixed Deposits** In FDs, you deposit a fixed sum for a specific period and earn returns. Here is how it works: * You choose an investment term ranging between 7 days and 120 months * You earn interest by keeping your money in the account for a specific term * Upon maturity, you receive the original deposit along with the accumulated interest Here are some key points to note: * The interest rate is often higher for cumulative (payout at maturity) and senior citizen deposits * Some banks let you withdraw funds before the term ends by charging premature withdrawal fees Role of **[[Fixed Deposits](https://www.bajajfinservmarkets.in/fixed-deposit.html)]** in Planning Your Child’s Future FDs are a low-risk option for accumulating funds. You can also open a fixed deposit for children, which is a type of FD account specially tailored for minors. You need to manage it till your child attains the age of 18 years. Here is how it can help in the financial planning of your child: **Helps Build a Corpus for Future** By investing in an FD for a long duration, say 10 years, you can build a substantial corpus. You can use this sizeable amount to help your child attain their goals and needs. Since these funds come with no restriction on end use, you or your child can use them for any expense, such as: * Covering education expenses * Paying emergency medical bills * Making a down payment for a house * Purchasing a car **Provides Financial Security** FDs offer fixed and assured returns. Once you invest in an FD, the interest is fixed and market fluctuations have no impact on it. So, you will get the returns, irrespective of the market condition. FDs are also insured by Deposit Insurance and Credit Guarantee Corporation (DICGC), further adding to the security you get. Assists in Building Financial Discipline You can teach your children the importance of saving and making the right investment choices. This can be extremely helpful in their future since they get into the habit of saving from a young age. **Benefits of Fixed Deposits** Whether you invest in a regular FD or a fixed deposit for children, there are several advantages that help maximise your returns. These range from fixed returns and tax benefits to flexibility in investment and deposit amounts. Here are some perks you can enjoy: * Fixed deposits provide assured returns at a fixed rate of interest, ensuring security and stability * The principal amount invested in the beginning remains safe and gets returned at the end of the investment term, along with the interest earned * With FDs, you have the flexibility to choose the investment term that best suits your unique needs and goals * They provide a consistent stream of income through periodic interest payouts, such as monthly, quarterly, semi-annually or annually * The interest rates of fixed deposits are higher than those of savings accounts, making it a more lucrative option to build wealth * You have the benefit of obtaining a loan against your FD to address financial emergencies conveniently **Process of Opening a Fixed Deposit** The steps of booking an FD investment vary depending on the issuer you choose, but here is a general overview of how you can invest: * Visit the official website or download the app of the chosen financial institution * Sign up if you are not an existing user and log in using your credentials * Find the 'Fixed Deposit' option and choose your preferred type * Fill in all mandatory fields, such as personal details, nominee details, deposit amount and term, along with digital signatures * Provide all required documents and review the details carefully before submitting * Make the payment for the investment amount through your preferred mode * Save the confirmation and account details for future use **Eligibility Criteria and Documentation for Opening a Fixed Deposit** Different issuers have different requirements, which is why you must go through them before investing. This will help you invest without any hassles. The following entities are generally eligible to open an FD: * Indian residents * Non-Resident Indians (NRIs) * Individual or joint venture owners * Minors * Senior citizens * Sole proprietorship owners * Company owners * Societies Submit these documents, along with other copies, as requested by your issuer: * Duly filled and signed application form * Passport-size photographs * Proof of Identification: PAN card, Voter ID card, Passport * Proof of Address: Passport, Electricity bill, Telephone Bill * Original documents for verification, if required If you open a fixed deposit for children, you will also have to submit age proof and any other document, as requested. Like every financial decision, opening a fixed deposit also demands strategic planning. Compare various issuers on **[[Bajaj Markets](https://www.bajajfinservmarkets.in/)]** and choose the most lucrative and secure option.