Planning to Educate Your Daughter Abroad? Invest in FD for Children Right Away
Be it their education, or marriage, be it their job search, everything you want to do for your daughter will require funds. You never want your child to struggle for anything, until you are alive. But, what about their life after you? What in case of unforeseen circumstances? Of course, nobody can predict the future!
The best way to secure your child’s future is to start investing your savings right from their childhood. The most trusted investment instrument is Fixed Deposit (FD) for a child. With the endless benefits that FDs can offer, they can be the best investment option for your child.
Benefits of FD
- Flexible tenures: You can choose the tenures of your FD ranging from 7 days to 10 years.
- Premature Withdrawal: You can avail for premature withdrawal of FD in case of financial emergencies with a minimal penalty to be paid. However, the best choice is to avoid premature withdrawal to enjoy the myriad benefits of FD.
- Security: FD is considered to be the most secure investment with a complete affirmation of returns of your investment unlike other financial investments like mutual funds where the decrease in interests in the market will affect your FD interest rates.
- FD Calculator: You can calculate the maturity of you FD and the returns by using the online facility of FD calculator available on the websites of the providers.
- Loan: You can avail a loan against your FD where you can use 90% of your FD amount with lower interest rates compared to standard loans.
- Tax Benefits: Under Section 80C of the Income Tax Act, you can claim a tax deduction on the interest rates of your investment up to Rs. 1,50,000.
- Higher rate of interest: You get higher FD interest rates compared to the interest rates of a standard savings account. The interest rates vary according to the providers.
- FD Laddering: FD laddering allows you to invest your principal amount into different FD accounts with different tenures that ensures a continuous income after each maturity date.
FD for Child vs. Educational Loans
- Your daughter can avail an education loan if she wants to study in India or abroad. Though you can accompany them in the account, the money has to be repaid by your child after the tenor ends.
- Education loan becomes a liability for your child while FD can help them teach the importance of money without any obligations.
- You can get the best out of your savings for your daughter instead of paying back money with interest to the provider.
Company Fixed Deposit Scheme
NBFCs is a prominent financial provider that offers a unique range of FDs like FD for Child, and FD for Senior Citizen apart from the standard FD. The minimum principal amount is Rs. 25,000 but offers the highest FD interest rates (8.4%) compared to all other banks and financial providers. Along with the online application procedure, you can check the maturity of your FD and the interest rates of your investment using the online FD calculator provided on their website. Invest in FDs to facilitate top quality education abroad for your daughter.