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Mar 21, 2024 · Do you want to invest in FD schemes for your Child? This article offers you a complete guide on how, when, and which FD you should invest in to secure your child's future. Key Features of FD Schemes for Child
Investing could grow the money you're saving for your child far more than it would in a savings account. The simplest way to invest for your child is to open a junior investment Isa, in which investments are protected from capital gains tax and dividends tax.
Easy-access accounts are best for saving bigger sums – though the best rates here are mainly on kids' current accounts. Nationwide's FlexOne Saver currently pays the top rate of 5% on up to a decent £5,000, though it's only available if you open (or already have) the FlexOne current account.
Why choose fixed deposit scheme for children? Fixed deposit scheme ensures that you save up for your kid’s future with no hassles. FD s require you to invest once and that will be the end of it, unlike other savings schemes which require you to make regular investments in order to save up.
- Children's Savings accounts. Many of the banks and building societies offer savings accounts specifically for children, providing a preferential interest rate for the first 12 months or paid on balances up to a certain limit.
- Child Trust Funds. While Child Trust Funds (CTF) are no longer available, you can still contribute up to £9,000 a year into an existing CTF account. The money belongs to the child and they can only take it out when they have reached the age of 18 but can take control of the account when they’re 16.
- Junior ISA (JISA) A JISA is a long-term tax-free savings account for children and contributions can be made up to an annual limit of £9,000 (Tax year 2023/24).
- Junior SIPPs. A Junior Self Invested Personal Pension (SIPP) is a type of pension designed for a child. While on the face of it starting a pension for a child may appear a bit premature, the long investment period and access to a pension fund at 55 could make it a wise long-term investment choice.
Mar 20, 2024 · Fixed Deposit schemes for children are investment plans that allow parents or guardians to deposit a lump sum in their child's name. These schemes come with a fixed tenure, and the money accrues interest at a predetermined rate. Unlike Savings Accounts, children's FDs offer higher interest rates, making them an ideal choice for long-term savings.
The benefits of investing in an FD plan for children are as follows. They can be opened for children as young as one year old, allowing parents to save more for a longer investment period. One can open an FD account with a minimum investment of Rs.1000.
