FD for Child Education: Secure and grow future savings

In an increasingly global and incredibly competitive world, higher education is the key to a bright future. However, ensuring your child's academic dreams come true requires thoughtful financial planning. The rising cost of professional and international college courses, often reaching crores of rupees, poses a significant challenge for parents who aspire to provide the best for their children. In such a scenario, Fixed Deposits (FDs) for children’s higher education emerge as a reliable and strategic investment.

Understanding the Financial Landscape of Higher Education

Sending a child abroad to pursue higher education, particularly in countries like the USA or UK, is a substantial financial commitment. The costs associated with tuition, accommodation and other living expenses can easily escalate to several crore rupees. Parents need to plan meticulously to ensure that they are financially equipped when the time comes for their child to embark on the academic journey.

The Power of FDs: A Steady Investment for Future Dreams

Fixed Deposits are a time-tested and secure investment option, providing assured and attractive returns on investment after a predetermined period. By strategically allocating funds to FDs, you can create a financial cushion that aligns with your child's educational aspirations. Whether the goal is to fund a domestic professional course or an international degree, the disciplined approach of FDs allows for systematic wealth accumulation.

How does it work?

If you want to build a fund for your children, investing in ICICI Bank FDs can help grow your savings over time with attractive interest rates. For example, when you invest ₹ 20 lakh in an FD for 18 months at 7.25%* p.a., the total amount at maturity becomes ₹22.27 lakh.

With ICICI Bank, you can open an FD for your children’s education using any of the two methods below:

• Regular FD: These are traditional FDs opened by a parent / guardian in their name for the child’s future.
• Minor FD: These are opened in the child’s name and managed by a guardian until maturity.

FDs vs Other Investments

*Interest rates are subject to change. Please confirm before making any financial decision.

A Versatile Solution

While we have discussed FDs as a way to save for the specific goal of your child's higher education, their flexibility extends to other financial goals as well. Whether it is planning for a dream vacation, saving for the down payment of a new home or creating an emergency fund, you can use FDs to meet an array of diverse financial needs.