Securing your child’s future is an essential financial goal. Among the distinct financial planning options available, fixed deposits stand out as a reliable and stable investment product for this purpose. A fixed deposit account not only offers assured returns but also keeps your capital safe, making it a prudent choice for funding future education requirements.
Why consider fixed deposits for education planning?
· Assured returns
Fixed deposits, often referred to simply as FD, are popular for their assured returns and stability, unlike mutual funds or stocks which can be unpredictable. When you open a fixed deposit account, the interest rate at which your money grows is fixed from the very beginning.
This certainty allows you to know exactly how much funds you will have at the end of the maturity period, making it easier to plan for specific goals like your child’s education expenditure. This predictability is indispensable when setting aside funds for college tuition and other related expenses.
· Flexible tenures
One of the major benefits of a fixed deposit account is the flexibility it offers in terms of tenure. Based on your financial goals and the educational milestones of your child, you can select from a variety of tenure options ranging from a few months to several years. This flexibility allows you to align the maturity of the FD with key educational timelines, such as beginning school or entering college.
· Compounded growth
FDs enhance your returns through the compounding effect on interest. This means that the interest constituent earned is reinvested to generate additional earnings over time instead of being paid out periodically, helping the investment to grow at an accelerated pace.
By using an online FD interest rate calculator, you can easily determine how much your investment will grow over time. This instrument allows you to visualise the future value of your FD investments, ensuring you meet or surpass your financial targets for your child’s education fund.
· Minimal risk
Safety is essential when it comes to saving for your child’s future, and fixed deposits are one of the lowest-risk investment products available today. They are insulated from the uncertainties and fluctuations of the stock market, offering a safe haven for your capital.
This security is especially essential when planning for long-term financial goals like education or retirement, as it ensures the ready availability of funds and protection against economic crises or market downturns.
Easy account opening with IndusInd Bank
IndusInd Bank simplifies the procedure of opening a fixed deposit account, making it accessible even for those who are not existing customers. Here is how you can begin:
Web application (applicable for non-IndusInd customers)
· Verify your Aadhaar and PAN
· Fill out personal and FD details
· Complete video KYC
· Fund your FD
Indus mobile
· Log in through your mobile banking ID and select the deposit option
· Click on the option ‘create fixed deposit’ and fill out the form
· After successful submission, the amount is transferred from your savings bank account
Indus net
· Choose the deposit option on your internet banking account
· Click on the ‘open FD’ option and fill out your details
· Choose the amount you wish to add to your FD from your savings bank account
Key takeaways
Opting for an FD for your child’s higher education is more than just a financial decision, it is a move towards securing a stable and promising future for them. The safety and predictability of FDs offer mental peace that your child will have the required funds for higher studies when the time comes. This financial foresight allows you to prepare for the rising education costs without compromising on education opportunities or quality.
