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Know Everything About SBI Child Plan Fixed Deposit

Published On Dec 27, 2021

The SBI Child Fixed Deposit is a child-friendly scheme that meets their specific requirements. By compounding their money in a low-risk environment, fixed deposit programs can help parents secure their children's financial destiny. The bank determines the interest rate in line with the Reserve Bank of India. The plan ensures that the child's milestones are met, including schooling, marriage, and business. This type of fixed deposit is popular due to its simplicity and risk-averse character. SBI Fixed Deposit is also offered to young individuals who are thinking about the future. The personalised plan for women and children offers a flexible duration and no lock-in periods. The program may be used for long-term investments as well as an emergency fund because money can be withdrawn at any moment.

Benefits of SBI Child Fixed Deposits Benefits

The SBI's programs are beneficial to all investors, regardless of their age or profession. Depositors who wish to ensure their own and their family’s futures can invest in SBI FDs, which offer guaranteed returns.

  • Financial Gains for the nominees and beneficiaries

Depositors can also add nominees or beneficiaries to their SBI fixed deposit accounts, who will profit in the event of the depositor's death or other unforeseen circumstances. The money placed will be available to the nominees and will be safeguarded during tough times. The depositor might identify his or her spouse or children as beneficiaries of the scheme's enhanced protection.

  • Interest Rates Are Reasonable

SBI Fixed Deposit interest rates differ depending on the depositor's age, gender, and economic contribution. The SBI Child Fixed Deposit has one of the finest interest rates for children, teens, and minors.

  • Automated Processes

The SBI offers a service that allows you to automatically renew your deposit term. When a depositor makes a deposit, he or she has the option of opting for automatic renewal. When the current term ends, the invested funds will be automatically renewed for the following one. The auto-renewal option saves time and works for the investor.

  • Tax Advantages

Capital gains below a particular level are tax-free in SBI FD plans like the Child plan and elderly citizens plan. Investors can profit from such schemes since they can help them build money. Investors should consider the tax benefits of various SBI FD programs before making a decision.


Fixed deposit plans are suitable for a wide range of investors with different objectives. The SBI Minor Child FD is tailored to the needs of children as they mature into adults. Because fixed deposit plans are less volatile than capital market and bond market investments, they are a desirable choice for individuals with a reduced risk appetite. The investor may relax knowing that his assets are safe from market fluctuations. If kept for a long period, the Child Plan FD can provide stable returns to meet the child's future financial needs.

Also read: 

 10 Myths about Child Insurance Plan

What Are Child Education Insurance Plans?

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

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