Featured Image Caption: Child Education Investment Plan
Education is of great importance for your child’s future. Therefore, you wouldn’t want to take any risks while investing in your child’s education. While mutual funds, stocks, and some other market-linked instruments offer lucrative returns, your investment will also be subjected to a certain degree of risk.
Instead of market-linked instruments, you can focus on stable investment options like FDs. A corporate FD like Bajaj Finance FD will help you to earn sufficient interest without exposing your investment to any risk. Moreover, the high interest rate of up to 6.75% will help you to meet the increasing expenses of your child’s education. The other reasons that make it the best fixed deposit for child education are stated below:
Periodic interest gains
Bajaj Finance FD lets you earn interest gains after every month, year, six months, or quarter. Choose a non-cumulative fixed deposit for earning periodic interest gains. These interest gains will help you to pay the regular expenses like tuition fees, school fees, bus fees, etc. of your child.
Easy withdrawal norms
Sometimes, you may need some funds urgently to meet the educational requirements of your child. It could be due to a sudden project, course, or education trip that is essential for shaping your child’s career. Therefore, you may have to withdraw your investment in haste.
Investing in Bajaj Finance FD is a much better option instead of investments like provident funds when it comes to liquidity. This FD scheme not only offers easy premature withdrawal norms but also provides loans against FD. By applying for this collateral-free loan you can maintain steady growth for your deposits. Therefore, instead of investing in a provident fund online, you can prefer to invest in Bajaj Finance FD.
Low initial investment
Education is a costly affair these days. Therefore, you will have to start investing early in your child’s educational expenses. With a low initial investment of Rs. 25,000, you can start investing in Bajaj Finance FD. You should invest in SDP from Bajaj Finance if you are looking for an investment option that would help you to save some money every month. SDP (Systematic Deposit Plan) lets you save an amount as low as Rs. 5000 every month. You can choose an investment tenor up to 60 months for your deposits and the number of deposits can be between 6 and 48 according to your preferences and convenience.
SDP has two variants. The Monthly Maturity Scheme variant provides a steady income every month as each deposit is locked in for the same period. The monthly proceeds will help you to take care of the minor expenses like books and other educational supplies like school bags, transportation costs, etc, every month.
The Single Maturity Scheme allows you to collect a bulk amount upon tenor completion. Only the initial deposit earns interest for the entire tenor whereas the lock-in period of subsequent deposits is adjusted according to the final date of maturity. Like Bajaj Finance FD, the SDP scheme is also considered safe and has received high ratings for stability from CRISIL and ICRA.
To save enough for the education of your child, you need to invest in a stable investment scheme like fixed deposits. High-paying FDs like Bajaj Finance FD help your deposits earn at a higher FD interest rate. A flexible tenor and easy investment options make it an ideal fixed deposit for child education.
You can utilize the periodic interest options offered by Bajaj Finance FD to take care of the trivial educational expenses of your child. Also, during urgent requirements, you can opt for a collateral-free loan against your deposits. You may also invest in SDP to ensuring a steady income flow to support your child’s education.
By Gaurav Khanna
who is an experienced financial advisor, digital marketer, and writer who is well known for his ability to predict market trends.