If parents wish, they can invest in a Fixed Deposit Account (FD) or Fixed Deposit Account (RD) in the name of their minor child and earn high returns by the time they reach adulthood, thus protecting them from financial hardships in the future of their children. Can reduce. Let us know how you can open FD and RD account in the name of children.
n India, parents happily spend all their life’s earnings to fulfill their children’s education, marriage and other wishes.
However, if parents wish, they can open Fixed Deposit (FD) and Recurring Deposit (RD) accounts in the name of their minor children and invest in them and make their future bright by earning good returns on investment till the child grows up.
Let us know how you can open FD and RD account in the name of your child and what documents you may need to open these accounts.
Keep these things in mind before opening an account
- You can open an account for FD and RD without your child’s PAN card .
- Open your child’s FD and RD account in the same bank in which you have your savings account because many banks have conditions for opening a minor’s bank account, which you have to fulfill. According to HDFC Bank, the country’s largest bank, if you want to open FD and RD accounts for your children, then it is necessary for you to have a savings account in the bank.
- To open bank accounts of your children, you will also have to follow KYC rules.
Which documents are required?
Every bank demands different documents to open FD and RD bank account of children. Therefore, please get this information from the bank in which you want to open your child’s account.
However, there are some documents which every bank accepts. Like minor’s Aadhar card, parent’s Aadhar card, PAN card and address proof. There are many banks which do not open FD and RD accounts without the Aadhar card of a minor.
There are two types of bank accounts of minors
The bank offers two types of accounts for children. The first is for children above 10 years of age who can run their own account i.e. can do transactions from the account. And the second one for children below 10 years of age whose account is run by their parents.
However, in both these types of bank accounts, along with minors, parents will also have to compulsorily get KYC done.
