{"id":10667,"date":"2026-02-23T10:25:48","date_gmt":"2026-02-23T10:25:48","guid":{"rendered":"https:\/\/lemonn.co.in\/blog\/?post_type=banking&#038;p=10667"},"modified":"2026-02-23T10:25:48","modified_gmt":"2026-02-23T10:25:48","slug":"fixed-deposit-for-children-types-benefits-steps-to-start-an-fd-in-2026","status":"publish","type":"banking","link":"https:\/\/lemonn.co.in\/blog\/banking\/fixed-deposit-for-children-types-benefits-steps-to-start-an-fd-in-2026\/","title":{"rendered":"Fixed Deposit for Children \u2013 Types, Benefits &#038; Steps to Start an FD in 2026"},"content":{"rendered":"\n<p>Planning early for your child\u2019s future is one of the smartest financial decisions you can make. A <strong>Fixed Deposit (FD) for children<\/strong> is a safe and guaranteed way to build funds for education, higher studies, or other long-term goals.<\/p>\n\n\n\n<p>In this guide, let\u2019s understand the types of child FDs, key benefits, and the step-by-step process to open one in 2026.<\/p>\n\n\n\n<h2 id='what-is-a-fixed-deposit-for-children'  id=\"boomdevs_1\" class=\"wp-block-heading\">What is a Fixed Deposit for Children?<\/h2>\n\n\n\n<p>A <strong>Child Fixed Deposit<\/strong> is an FD opened in the name of a minor (below 18 years), usually managed by a parent or legal guardian.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The child is the primary account holder.<\/li>\n\n\n\n<li>The parent\/guardian operates the FD until the child turns 18.<\/li>\n\n\n\n<li>Returns are guaranteed as per the bank&#8217;s interest rates.<\/li>\n<\/ul>\n\n\n\n<h2 id='quick-summary-child-fd-at-a-glance'  id=\"boomdevs_2\" class=\"wp-block-heading\">Quick Summary \u2013 Child FD at a Glance<\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th>Particular<\/th><th>Details<\/th><\/tr><\/thead><tbody><tr><td>Who Can Open<\/td><td>Parent or legal guardian<\/td><\/tr><tr><td>Age Limit<\/td><td>Below 18 years<\/td><\/tr><tr><td>Tenure<\/td><td>7 days to 10 years (can extend till the child turns 18)<\/td><\/tr><tr><td>Minimum Deposit<\/td><td>\u20b91,000 \u2013 \u20b910,000 (bank dependent)<\/td><\/tr><tr><td>Interest Rate<\/td><td>Similar to regular FD rates<\/td><\/tr><tr><td>Risk Level<\/td><td>Very low<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h1 id='types-of-fixed-deposits-for-children'  id=\"boomdevs_3\" class=\"wp-block-heading\">Types of Fixed Deposits for Children<\/h1>\n\n\n\n<h2 id='regular-minor-fd'  id=\"boomdevs_4\" class=\"wp-block-heading\">Regular Minor FD<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Opened in the child\u2019s name.<\/li>\n\n\n\n<li>Operated by a guardian.<\/li>\n\n\n\n<li>Fixed tenure and fixed interest rate.<\/li>\n<\/ul>\n\n\n\n<p>Best for: Short- or medium-term savings goals.<\/p>\n\n\n\n<h2 id='cumulative-fd-for-children'  id=\"boomdevs_5\" class=\"wp-block-heading\">Cumulative FD for Children<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Interest compounded and paid at maturity.<\/li>\n\n\n\n<li>Helps grow savings faster.<\/li>\n<\/ul>\n\n\n\n<p>Best for: Long-term goals, such as higher education.<\/p>\n\n\n\n<h2 id='non-cumulative-fd'  id=\"boomdevs_6\" class=\"wp-block-heading\">Non-Cumulative FD<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Interest paid monthly\/quarterly.<\/li>\n\n\n\n<li>Can be credited to the guardian\u2019s account.<\/li>\n<\/ul>\n\n\n\n<p>Best for: Supplementing family income.<\/p>\n\n\n\n<h2 id='tax-saving-fd-in-minor-s-name'  id=\"boomdevs_7\" class=\"wp-block-heading\">Tax Saving FD (In Minor\u2019s Name)<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>5-year lock-in.<\/li>\n\n\n\n<li>Eligible for Section 80C deduction (guardian can claim).<\/li>\n\n\n\n<li>Interest is taxable.<\/li>\n<\/ul>\n\n\n\n<p>Best for: Tax planning + long-term savings.<\/p>\n\n\n\n<h1 id='benefits-of-fixed-deposit-for-children'  id=\"boomdevs_8\" class=\"wp-block-heading\">Benefits of Fixed Deposit for Children<\/h1>\n\n\n\n<h2 id='guaranteed-returns'  id=\"boomdevs_9\" class=\"wp-block-heading\">Guaranteed Returns<\/h2>\n\n\n\n<p>FD offers fixed interest rates with no market risk.<\/p>\n\n\n\n<h2 id='safe-investment-option'  id=\"boomdevs_10\" class=\"wp-block-heading\">Safe Investment Option<\/h2>\n\n\n\n<p>Regulated by RBI with DICGC insurance up to \u20b95 lakh per depositor per bank.<\/p>\n\n\n\n<h2 id='disciplined-savings'  id=\"boomdevs_11\" class=\"wp-block-heading\">Disciplined Savings<\/h2>\n\n\n\n<p>Encourages long-term financial planning for the child\u2019s future.<\/p>\n\n\n\n<h2 id='flexible-tenure-options'  id=\"boomdevs_12\" class=\"wp-block-heading\">Flexible Tenure Options<\/h2>\n\n\n\n<p>Choose tenure based on the child\u2019s age and financial goal.<\/p>\n\n\n\n<h2 id='loan-against-fd'  id=\"boomdevs_13\" class=\"wp-block-heading\">Loan Against FD<\/h2>\n\n\n\n<p>Some banks allow a loan facility against a minor FD (guardian-operated).<\/p>\n\n\n\n<h1 id='example-child-fd-growth'  id=\"boomdevs_14\" class=\"wp-block-heading\">Example \u2013 Child FD Growth<\/h1>\n\n\n\n<p>If you invest <strong>\u20b91,50,000 for 5 years at 8% (cumulative option)<\/strong>:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Estimated Interest Earned: \u20b970,000 \u2013 \u20b975,000<\/li>\n\n\n\n<li>Maturity Amount: Around \u20b92,20,000 \u2013 \u20b92,25,000<\/li>\n<\/ul>\n\n\n\n<p>Actual returns depend on compounding frequency and bank policy.<\/p>\n\n\n\n<h1 id='eligibility-criteria'  id=\"boomdevs_15\" class=\"wp-block-heading\">Eligibility Criteria<\/h1>\n\n\n\n<p>\u2714 Child must be below 18 years<br>\u2714 Parent or legal guardian required<br>\u2714 Minor savings account may be required (bank dependent)<\/p>\n\n\n\n<p>Once the child turns 18, the FD operation rights transfer to them.<\/p>\n\n\n\n<h1 id='documents-required'  id=\"boomdevs_16\" class=\"wp-block-heading\">Documents Required<\/h1>\n\n\n\n<p>For opening an FD for a child:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Child\u2019s Birth Certificate<\/li>\n\n\n\n<li>Aadhaar Card (child and guardian, if available)<\/li>\n\n\n\n<li>PAN Card of the guardian<\/li>\n\n\n\n<li>Address Proof<\/li>\n\n\n\n<li>Passport-size photographs<\/li>\n\n\n\n<li>Minor account details (if applicable)<\/li>\n<\/ul>\n\n\n\n<p>Documents may vary by bank.<\/p>\n\n\n\n<h1 id='steps-to-open-a-fixed-deposit-for-a-child'  id=\"boomdevs_17\" class=\"wp-block-heading\">Steps to Open a Fixed Deposit for a Child<\/h1>\n\n\n\n<h2 id='method-1-visit-bank-branch'  id=\"boomdevs_18\" class=\"wp-block-heading\">Method 1: Visit Bank Branch<\/h2>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Open a minor savings account (if required).<\/li>\n\n\n\n<li>Fill the FD application form.<\/li>\n\n\n\n<li>Provide guardian and child KYC documents.<\/li>\n\n\n\n<li>Deposit a lump sum amount.<\/li>\n\n\n\n<li>Receive the FD receipt.<\/li>\n<\/ol>\n\n\n\n<h2 id='method-2-through-net-banking-if-minor-account-exists'  id=\"boomdevs_19\" class=\"wp-block-heading\">Method 2: Through Net Banking (If Minor Account Exists)<\/h2>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Log in to Guardian\u2019s net banking.<\/li>\n\n\n\n<li>Select child\/minor account.<\/li>\n\n\n\n<li>Go to <strong>Open Fixed Deposit<\/strong>.<\/li>\n\n\n\n<li>Enterthe deposit amount and tenure.<\/li>\n\n\n\n<li>Confirm nominee details.<\/li>\n\n\n\n<li>Submit using OTP.<\/li>\n<\/ol>\n\n\n\n<p>FD confirmation will be generated instantly.<\/p>\n\n\n\n<h1 id='taxation-rules-in-2026'  id=\"boomdevs_20\" class=\"wp-block-heading\">Taxation Rules in 2026<\/h1>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Interest earned is taxable.<\/li>\n\n\n\n<li>Income may be clubbed with parents\u2019 income (as per tax rules).<\/li>\n\n\n\n<li>Tax-saving FDs qualify under Section 80C (up to \u20b91.5 lakh per financial year).<\/li>\n\n\n\n<li>TDS may apply if interest exceeds the prescribed limits.<\/li>\n<\/ul>\n\n\n\n<p>Consult a tax advisor for clarity on clubbing provisions.<\/p>\n\n\n\n<h1 id='what-happens-when-child-turns-18'  id=\"boomdevs_21\" class=\"wp-block-heading\">What Happens When Child Turns 18?<\/h1>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Minor account becomes a major account.<\/li>\n\n\n\n<li>Fresh KYC may be required.<\/li>\n\n\n\n<li>FD operation rights transfer to the child.<\/li>\n\n\n\n<li>Guardian loses operating authority.<\/li>\n<\/ul>\n\n\n\n<h1 id='frequently-asked-questions-faqs'  id=\"boomdevs_22\" class=\"wp-block-heading\">Frequently Asked Questions (FAQs)<\/h1>\n\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-1771842254356\" class=\"rank-math-list-item\">\n<h3 id='1-can-i-open-an-fd-in-my-child-s-name'  id=\"boomdevs_23\" class=\"rank-math-question \">1. Can I open an FD in my child\u2019s name?<\/h3>\n<div class=\"rank-math-answer \">\n\n<p>A. Yes, as a parent or legal guardian.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1771842266777\" class=\"rank-math-list-item\">\n<h3 id='2-is-fd-safe-for-children'  id=\"boomdevs_24\" class=\"rank-math-question \">2. Is FD safe for children?<\/h3>\n<div class=\"rank-math-answer \">\n\n<p>A. Yes, it is one of the safest investment options.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1771842279594\" class=\"rank-math-list-item\">\n<h3 id='3-can-a-minor-withdraw-from-an-fd-before-maturity'  id=\"boomdevs_25\" class=\"rank-math-question \">3. Can a minor withdraw from an FD before maturity?<\/h3>\n<div class=\"rank-math-answer \">\n\n<p>A. Guardian can request a premature withdrawal (penalty may apply).<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1771842293147\" class=\"rank-math-list-item\">\n<h3 id='4-is-there-a-special-interest-rate-for-children'  id=\"boomdevs_26\" class=\"rank-math-question \">4. Is there a special interest rate for children?<\/h3>\n<div class=\"rank-math-answer \">\n\n<p>A. Usually the same as regular FD rates.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1771842306736\" class=\"rank-math-list-item\">\n<h3 id='5-can-i-open-an-fd-online-for-my-child'  id=\"boomdevs_27\" class=\"rank-math-question \">5. Can I open an FD online for my child?<\/h3>\n<div class=\"rank-math-answer \">\n\n<p>A. Yes, if a minor savings account already exists.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n<h1 id='conclusion'  id=\"boomdevs_28\" class=\"wp-block-heading\">Conclusion<\/h1>\n\n\n\n<p>A <strong>Fixed Deposit for children in 2026<\/strong> is a safe and reliable way to build funds for education, marriage, or future financial needs. With guaranteed returns and flexible tenure options, it helps parents plan ahead without taking market risks.<\/p>\n\n\n\n<p>Before investing, always compare FD rates across banks and choose a tenure aligned with your child\u2019s future goals.<\/p>\n","protected":false},"featured_media":0,"template":"","class_list":["post-10667","banking","type-banking","status-publish","hentry"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/banking\/10667","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/banking"}],"about":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/types\/banking"}],"wp:attachment":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media?parent=10667"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}