Open Fixed Deposit for Minor

Posted on Tuesday, November 19th, 2024 | By IndusInd Bank

Planning for your child’s future often takes the top priority. While there are numerous investment avenues in the market to secure your child’s financial future, a fixed deposit for minors stands out as a secure and reliable option. A fixed deposit (FD) offers guaranteed returns and a disciplined approach to savings. Let’s see how a minor FD account can help you build a strong financial foundation for your child, and how you can book such an FD.  

Can You Open an FD for a Minor?

Some people might be wondering if it is possible to open an FD for minors. The answer is yes. You can open a fixed deposit for a minor; most banks offer this feature.  

• A minor FD account is a fixed deposit opened in the name of a child. It is managed by a parent or guardian until the child reaches adulthood. The minor’s age can range from 1 day to 18 years.  

• The guardian operates the minor FD account on behalf of the child and ensures that the savings grow in time with their child’s growth. 

• The interest rates for minor FDs tend to be the same as regular FDs. The funds can be locked in for a specified period ranging from a few months to several years.  

• Once the minor reaches adulthood, they can either renew the minor FD account or transfer the funds into their savings account. 

Benefits of a Fixed Deposit for Minors

Opening a fixed deposit for a minor comes with a host of advantages: 

1. Guaranteed Returns

The primary USP of an FD is that it offers fixed interest rates, which ensures predictable and guaranteed returns. So, you can plan for your child’s future financial needs without worries about fluctuating market conditions.  

2. Flexible Tenure

With FDs, you can choose a tenure that aligns with your financial goals. Thus, a minor FD account can be ideal for your child’s education, marriage, or other life events. 

3. Competitive Interest Rates

Depending on the bank and tenure, you can enjoy attractive interest rates on minor FD accounts. IndusInd Bank offers a high interest rate of up to 7.75%. So, your savings can grow safely and steadily with us.  

Interest rates are subject to change. Please refer updated fixed deposit interest rates.  

4. Easy Accessibility

While premature withdrawals may attract penalties, you can access the funds in case of emergencies. 

5. Tax Benefits

Investing in a tax-saver FD allows you to claim tax benefits under Section 80C of the Income Tax Act. This means you can reduce your taxable income while also saving for your child’s future. 

6. Automatic Renewal

Many banks, including IndusInd Bank, offer automatic renewal options for minor FDs. This ensures that your child’s savings continue to grow without interruption. 

How to Open an IndusInd Bank FD for Minors?  

To enjoy a seamless FD experience, consider booking a Fixed Deposit with IndusInd Bank. Here’s how you can get started:  

a. For Existing Customers (via Mobile and Internet Banking)

1. Log in to your IndusInd Bank mobile banking app. 

2. Select the option to create a fixed deposit. 

3. Fill out the required details. Enter the amount you wish to invest, tenure, and interest payout frequency, and submit the form. 

The amount will be deducted from your linked savings account, and the fixed deposit for the minor will be instantly created. 

If you prefer using internet banking, log in to your account on the IndusInd Bank website. Navigate to the ‘Deposits’ section, select ‘Open FD,’ and enter the necessary details and submit. The FD will be created with the funds transferred from your savings account. 

b. For New Customers (via web application) 

1. Visit the IndusInd Bank website. 

2. Verify your PAN and Aadhaar details. 

3. Provide the personal details of the minor and the guardian, 

4. Enter the FD details such as the amount, tenure, and interest payout frequency. 

5. Complete video-KYC (Know Your Customer) verification with a bank representative. 

6. Fund the FD using any bank account.  

Also Read: Switch to a Smart Way of Investing- Advantages of Digital Fixed Deposits 

Conclusion

Investing in your child’s future is a testament to your love and commitment. With an IndusInd Bank Fixed Deposit, you can rest assured that your child’s financial future is in safe hands. With high interest rates, flexible tenure options, hassle-free booking, and lots more, we offer an easy, secure, and rewarding way to build a strong financial foundation for your loved ones. 

By using IndusInd Bank’s online banking platform or mobile app, you can set up a minor FD account in just a few easy steps. 

Ready to secure your child’s future? Open an IndusInd Bank FD for a minor today!  

Disclaimer: The information provided in this article is generic and for informational purposes only. It is not a substitute for specific advice in your circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information.