Every parent wants to shape the future of their children. They want to see them settled in their life and thus, do whatever they can to witness that happening. There are many investment plans in the market which can help children in getting long term benefits their whole life, be it education, job, or running a business plan. But since we know, when it comes to investing money in the girl child, many get confused or end up funding in a non-profitable scheme which they later regret.
The right decision comes with a smart choice, and this is why it is better to invest in a long term fixed deposit. Fixed deposits are one of the most trustworthy and preferred options for saving money for your girl child, which will help her in many respects.
What is a Fixed Deposit?
A fixed deposit is an investment plan offered by banks as well as other financial companies. It is an excellent option to make your money grow as interest rates of fixed deposits are higher than any other saving accounts offered by banks.
How and when you should plan your investment?
Parenting is not only about raising a child and making them independent. It is also about planning a perfect future for them. This is why it is the parents’ sole duty to plan how they are going to invest in their child for a fruitful future. Below are listed some points which will help you to understand how and when you should decide to invest for your baby girl:
- The sooner it is, the better it would be. It is ideal to approach a bank which provides the highest FD interest rates and open a fixed deposit even before the birth of the kid.
- Carefully decide the amount of money to be invested based on your income. Such strategies cannot be executed overnight. Think about it patiently and make the right move.
- Use a fixed deposit calculator (there are many apps for that) and evaluate your returns on investment to know how you are going to get the maximum profit out of it.
Why Is Fixed Deposit the right investment choice?
Fixed Deposits come with many benefits and leverages. There are many different types of fixed deposits, such as regular deposits which empower investors to fund their money according to their ease.
Now some banks have started providing various kinds of FDs like cumulative, short term, etc. FDs are advantageous and below stated features will help you know why it is the right investment choice for your children.
- Higher interest rates– Alluring interest rates are one of the reasons most of the investors fund their money in fixed deposits. If you compare the FD interest rates to any other fund schemes, you will yourself know the difference in the rate of interest.
- FD can be renewed easily– FDs can be renewed anytime you want it. So if you think your fixed deposit (FD) is about to reach maturity, you can simply follow some formalities, submit some documents, and that’s it. Your fixed deposit is renewed for another term. See how hassle-free it is.