SBI’s child fixed deposit scheme is a risk-free investment scheme that helps cater to the need of children as they become adults. Through this safe investment scheme, investors can get a large amount of money through long-term investment.
This is a plan prepared by SBI with a secure future for children in mind. SBI’s FD’s provide guaranteed returns to the depositor therefore it is a safe bet for the people with less risk appetite.
SBI sets interest rates on this scheme only on the basis of interest rates fixed by the Reserve Bank of India. The SBI Child Plan Fixed Deposit Investment Scheme can be very useful for all the expenses of children's education and marriage.
SBI offers 2 types of plans for its customers under this scheme;
1) Smart Champ Insurance
2) SBI Life Smart Scholar.
SBI Life Smart Champ Insurance
Individuals between the ages of 21 and 50 can avail this policy. This is SBI's plan to help you secure your children's education. The child will get the benefit of the scheme in 4 annual installments on completion of 18 years of age. The maximum age of the child of the policy purchaser should be 13 years i.e. Only parents of children up to the age of 13 can avail this policy.
An investment of Rs 10,000 per month in this scheme ends up getting Rs 1 crore without any tax deduction! 46,800 can be saved under Section 80C of Income Tax. You can pay the premium annually, semi-annually, quarterly or on a monthly basis. In case of emergency, the insured will receive an amount as per the policy. Up to 105% of the total Assured amount will be received in this way. You are also eligible for tax deduction by investing in this scheme.
SBI life Smart Scholar scheme
Parents between the ages of 18 and 57 can invest in this scheme. The maturity age of the child under this scheme is 18 to 25 years. With the SBI Smart Scholar scheme, you get the opportunity to secure your children's future with market returns. Investors also get a variety of premium payment options.
