If you want to make your child’s future golden, then State Bank SBI is running a special scheme. This scheme is deposited in Fixed Deposit. Its name is SBI Child Plan Fixed Deposit. This plan is made in such a way that the future of the child can be secured. One gets the benefit of compound interest on deposits in very less time and less risk.
According to the interest fixed by the Reserve Bank, the State Bank gives returns on this scheme. This scheme has been made in such a way that the needs of the child related to education, marriage and employment can be met. This plan is very easy to take and the risk is very less due to which it is quite popular.
In the absence of the father or the person who has started this FD plan in the name of his child, the insurance company pays the entire premium. An investment of Rs 10,000 per month in this scheme yields Rs 1 crore without any tax deduction. Under Section 80C of Income Tax, Rs 46,800 can be saved.
1. Earning from Interest
Without any risk, this scheme gives the right earning of interest in the name of the depositor. Guaranteed returns are available on the deposit amount as per the fixed interest rate. That is, the return should be given according to the interest already fixed. For this, the base point is fixed by the Reserve Bank and on the basis of that the return is received from the bank. The money deposited by the depositor gets the benefit of compound interest.
2. Financial facilities to the nominee
There is a facility to link the name of the nominee with the depositor in the fixed deposit scheme of SBI. In case of untimely death of the depositor, the nominee gets the full benefit of the FD. The nominee can claim the FD money. The depositor can nominate wife or husband or child as a nominee.
3. Calculate the Interest Rate
The interest on this plan is subject to change. It completely depends on the interest rate of the Reserve Bank. The rate fixed by the Reserve Bank is applicable only on FD. The interest rate also depends on the age, gender of the depositor and the premium amount. Children, youth and minors get the most attractive interest rate in SBI Child Plan Fixed Deposit Scheme.
4. Renewal of Deposit Period
SBI provides automatic facility to renew the deposit tenure. You have to apply for auto renewal at the time when this scheme has been started in the bank. Once the policy matures, its money will be fixed for the next term. This will give an opportunity to increase the deposited capital.
5. Tax Benefits
Tax facility is available on child plan and senior citizen plan. There is a limit fixed below which income is not taxed. By taking advantage of this scheme, tax can be saved and accumulated capital can be increased. One should get to know about the tax benefits before investing in the scheme.
