Parents can invest in a fixed deposit (FD) or a recurring deposit (RD) account in the name of their minor child and earn high returns by the time they reach their adulthood, thus protecting them from financial hardships in the future.
Parents can open an FD and/or a RD account without the child's PAN card. Parents have to open the child's FD and/or RD account in the same bank in which they have their savings account, as many banks have conditions for opening a minor's bank account.
Typically, for opening an FD or RD account for children, one must have a savings account in that particular bank. To open bank accounts for your children, you will also have to follow the KYC rules.
Every bank demands different documents to open an FD or or RD account for children. However, there are some documents which banks accept universally, such as a minor's Aadhar card, parent's Aadhar card, PAN card, and address proof.
Banks usually offer two types of accounts for children. The first is for children aged 10 years and above. Here, the child can operate the account. The other is for children aged below 10 years of age, where the account is operated by their parents.
Compiled by Syed Muskan