In today’s competitive world, every parent dreams of giving their child the best education possible. But fulfilling this dream requires careful financial planning, especially as the cost of higher education — both in India and abroad — continues to rise sharply. Building a secure education corpus early on ensures that when the time comes, financial worries don’t stand in the way of your child’s aspirations.
FDs: A safe path toward long-term education goals
Fixed Deposits (FDs) remain one of the most dependable investment options for parents looking to safeguard their child’s future. They offer guaranteed returns and protect your capital from market volatility. With flexible tenures of up to 60 months and renewal options, FDs enable long-term planning and consistent growth — ideal for building a solid financial foundation over time.
Real stories of smart planning
Take the case of Omkar ji, who began investing in FDs in 2012 to fund his son Sudhan’s overseas education. Over ten years, he built a substantial corpus through a series of well-timed deposits and renewals. When Sudhan’s first-year college fee of ₹45 lakh was due, the funds were ready — allowing the family to focus on celebration instead of financial stress.
Similarly, Mr. Deo started early when his daughter Geetanjali turned 12, steadily adding to his FD portfolio over the years. His disciplined approach ensured that he could comfortably fund her admission to a reputed world school without worrying about market fluctuations or economic downturns.
Why choose Bajaj Finance FD?
Bajaj Finance Fixed Deposits combine safety with competitive returns, helping you plan your child’s education confidently. Rated CRISIL AAA/STABLE and [ICRA]AAA(Stable), these FDs represent the highest level of safety for your investment. Backed by consistent performance and strong credit ratings, Bajaj Finance FDs help you stay worry-free while your savings steadily grow.
Start early, stay disciplined, and let your child’s dreams take flight — powered by the stability of Bajaj Finance Fixed Deposits.
Benefits of investing in a FD plan for the Child
Investing in a Fixed Deposit (FD) plan for your child’s future is one of the most secure and rewarding ways to achieve long-term financial stability. Here’s how it can benefit you and your child:
1. Guaranteed returns with zero market risk
Unlike market-linked investments, FDs offer assured returns that are unaffected by economic fluctuations. This ensures that your child’s education or future goals are never compromised, even during uncertain times.
2. Flexible tenures to match your goals
Whether you’re planning for school expenses in a few years or higher education a decade away, FDs allow you to choose a tenure that suits your timeline — with the option to renew upon maturity for continued growth.
3. Power of compounding for long-term savings
By opting for a cumulative FD, the interest earned gets reinvested, helping your savings grow faster over time. This is ideal for parents who start investing early and want to build a strong corpus by the time their child reaches college age.
4. Safety backed by top credit ratings
Bajaj Finance Fixed Deposits are rated CRISIL AAA/STABLE and [ICRA]AAA(Stable) — the highest ratings for safety — assuring you that your child’s future funds are in trusted hands.
5. Liquidity and easy access to funds
In case of an emergency, you can opt for premature withdrawal or take a loan against your FD, ensuring you have access to funds when needed without disturbing your child’s long-term plan.
6. Higher interest rates for senior citizens and special tenures
If grandparents wish to invest for their grandchild, they can benefit from higher interest rates offered to senior citizens, helping the corpus grow faster.
7. Simple and convenient investment process
Opening an FD with Bajaj Finance is quick, paperless, and can be done online — allowing you to start investing for your child’s future in just a few clicks.
Why Invest in Fixed Deposit for Children?
There are many reasons why you might want to invest in a fixed deposit for your child. Here are a few of the most common reasons:
- To save for their future. A fixed deposit can be a great way to save for your child's future education, marriage, or other expenses.
- To earn a profitable returns. A fixed deposit is a low-risk investment, which means that you can be fairly certain that you will earn a guaranteed return on your investment.
- To teach your child about financial responsibility. By investing in a fixed deposit for your child, you can teach them about the importance of saving and investing money.
If you are considering investing in a fixed deposit for your child, there are a few things you should keep in mind. First, you need to decide how much money you want to invest and for how long. You can visit the Bajaj Finance website or app and start the process of opening a fixed deposit account.
Documents required for Child FD
To open a Fixed Deposit (FD) account for a minor, specific documents from both the parent or guardian and the child are required:
- Minor’s birth certificate: Serves as proof of age and identity of the child.
- Parent/guardian’s PAN card: Needed for identity verification and financial documentation.
- Identity proof of parent/guardian: Can include Aadhaar card, passport, voter ID, or driving licence.
- Address proof: A valid document confirming the current residential address of the parent or guardian.
How to Open an FD for Your Child
You can open a Fixed Deposit (FD) in your child’s name, where the funds and interest earned will be handed over once they turn 18 or when the deposit matures. Here’s how to get started:
Step 1: Visit your preferred bank or NBFC and provide identity verification documents for both the child and the parent/guardian.
Step 2: Submit additional documents such as address proof, age proof, and passport-size photographs of the child.
Step 3: Once all documents and account details are submitted, the institution will verify the information before processing the FD request.
Step 4: After verification, the FD account will be opened in the child’s name, with the parent or guardian managing it until maturity.
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