CHILDRENS DEPOSIT SCHEME
Why choose fixed deposit scheme for children?
Fixed deposit scheme ensures that you save up for your kid’s future with no hassles. Fixed deposits require you to invest once and that will be the end of it unlike other savings schemes which require you to make regular investments in order to save up. Fixed deposits can be opened for kids as young as one year old, thus giving the parents more time to save up for their child’s future.
Another added advantage of fixed deposit scheme for children is that the minimum amount required to be deposited is only PGK 1,000. Investing in a fixed deposit for your child will ensure that your child stays financially protected in case something unfortunate should happen to you.
It is always better to choose a long-term fixed deposit where you can collect the interest at the end of the tenure, when it comes to a fixed deposit for a child.
A fixed deposit scheme for children is almost similar to regular fixed deposit schemes. But the main characteristic of such fixed deposit scheme- it allows parents or guardians to invest in fixed deposit accounts on behalf of their children.
The liability of the fixed deposit lies on the parents or guardian until the child reaches the age of 18. They are in charge of the FD till the child reaches the age of maturity or the maturity of the deposit.
- Fixed Deposits Account can be opened in the minor’s names by the parent/guardian
- Minimum amount of Deposit is PGK 5,000 & Maximum is PGK 20,000
- Minimum lock in period is 3 years to earn interest
- Interest of 7% PA for a period of 3 to 5 years
- Interest rate at 10% PA above 5 years
- Doubles the amount in 120 months
- No monthly charge
- Withholding Tax deducted at the time of maturity
- All other services and charges will be as per the bank’s standard tariff rates