What Is The Best FD Scheme For Child's Future?

The cost of education is rising rapidly in India. If the child aspires to study abroad, you will require even a higher amount to finance your child's education. Fixed deposits are an effective way to save money for your child's education. They offer a safe and convenient way to save funds. 

Here we tell you about the best FD scheme to save your child's future money. 

What Is A Fixed Deposit?

A fixed deposit (FD) is an investment option where you invest a certain sum of money for a specified term at a fixed rate. The interest rate depends on the tenure you choose. The rate also depends on the lender policies and varies from one lender to another. 

Depending on your requirements or choice, you can invest in an FD for a few days or a few years.

How To Choose The Best FD Scheme For Your Child's Future?

Keep the following aspects in mind when deciding where to invest for your child's future.


When you choose the financial institution for starting the FD choose a reliable name. You do not want your funds to be not available when you need them due to the bank going bust or being involved in some financial turmoil. 

Interest rate

Higher interest will give you higher returns; your child will have a larger corpus. A slight difference in the rate will impact the overall corpus significantly due to compounding and the long tenure of the deposit. You generally opt for longer terms when saving for your children.

Compare the current FD rates and choose wisely, keeping other aspects in mind.

Premature Withdrawal Option

Even though you are saving for a particular goal, it is still desirable to have liquidity. You should be able to withdraw money when you need it. 

Why Are PNB Fixed Deposits The Best Options?

If you are wondering where you should invest for your child's future, then PNB Housing offers FDs that are a good fit. 

Here are a few reasons that make them a popular option:

High Safety

PNB Housing FDs have a high safety rating. They are rated as FAA+/Negative rating by CRISIL and AA/Stable by CARE. These are high levels of safety to be sure about your funds being secure.

Competitive Rates

PNB Housing offers competitive current FD rates compounded annually on 31st March. Senior citizens are eligible for a 0.25% higher rate. 


You have a nomination facility available in fixed deposits offered by PNB Housing which ensures that the family members do not face any hassle in the event of the unfortunate demise of the deposit holder. 

Auto-Renewal Facility

Auto-renewal facility guarantees that you do not lose interest if you forget to renew your deposit on time. Auto-maturity and auto-renewal add to the convenience of the customer.

Premature Withdrawal 

You can withdraw from your deposit anytime after three months from your deposit date. Depositors who choose to withdraw before six months get an interest of 4% per annum. 

Ease of Access

PNB housing offers doorstep delivery for fixed deposits; the representatives pick up the application form from the customer's premises.

They have a wide branch network across 35 cities and also have dedicated service managers to take care of all your needs. 

To Sum It Up

PNB Housing fixed deposits offer the most effective way for you to save money for your child's future. You are assured of the safety of your money and can also expect good returns with this FD scheme. 

Choose the cumulative option FD with a long term to benefit from the magic of compounding that can help you fulfill your dreams. 

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