Fixed Deposit Schemes for Children 2026
Fixed deposit schemes for children help parents invest in a child's name to build a lump sum for their education or future needs. PNB's Balika Shiksha Scheme supports eligible girl children under a government scheme, while Yes Bank offers a standard FD parents can open for a minor. A parent or guardian manages the account until the child turns 18.
PNB Balika Shiksha Scheme
This is a fixed deposit account offered by PNB especially for the girl child.
The scheme is government-backed: PNB's official terms state that the Government of India contributes the Rs.3,000 deposit for each eligible girl child, with PNB acting only as the deposit-holding bank.
Features of PNB Balika Shiksha Scheme
The various features of the PNB Balika Shiksha Scheme are mentioned below:
Amount | Minimum: Nil Maximum: Rs.3,000 |
Tenure | Until the girl child reaches the age of 18 |
Loan facility | Not available |
Automatic renewal | Available for 30 days |
Premature cancellation | Not available |
Premature cancellation is permitted only if the girl child beneficiary passes away, in which case the deposit and interest are transferred to the government's account rather than paid out to the family.
PNB Balika Shiksha Scheme Interest Rates for Deposits Below Rs.3 Crore
The bank's current official domestic term deposit rates for deposits below Rs.3 crore, which apply to this scheme, are shown below:
Tenure | Rate of Interest for General Public | Rate of Interest for Senior Citizens | Rate of Interest for Super Senior Citizens |
7 to 14 days | 3.00% p.a. | 3.50% p.a. | 3.80% p.a. |
15 to 45 days | 3.00% p.a. | 3.50% p.a. | 3.80% p.a. |
46 to 90 days | 4.50% p.a. | 5.00% p.a. | 5.30% p.a. |
91 to 154 days | 4.90% p.a. | 5.40% p.a. | 5.70% p.a. |
155 days | 5.55% p.a. | 6.05% p.a. | 6.35% p.a. |
156 days to 179 days | 4.90% p.a. | 5.40% p.a. | 5.70% p.a. |
180 to 270 days | 5.60% p.a. | 6.10% p.a. | 6.40% p.a. |
271 days to 302 days | 5.60% p.a. | 6.10% p.a. | 6.40% p.a. |
303 days | 5.55% p.a. | 6.05% p.a. | 6.35% p.a. |
304 days to > 1 year | 5.60% p.a. | 6.10% p.a. | 6.40% p.a. |
1 year | 6.25% p.a. | 6.75% p.a. | 7.05% p.a. |
> 1 year to 389 days | 6.30% p.a. | 6.80% p.a. | 7.10% p.a. |
390 days | 6.30% p.a. | 6.80% p.a. | 7.10% p.a. |
391 days to 443 days | 6.30% p.a. | 6.80% p.a. | 7.10% p.a. |
444 days | 6.60% p.a. | 7.10% p.a. | 7.40% p.a. |
445 days to 665 days | 6.30% p.a. | 6.80% p.a. | 7.10% p.a. |
666 days | 6.50% p.a. | 7.00% p.a. | 7.30% p.a. |
667 days to 2 years | 6.30% p.a. | 6.80% p.a. | 7.10% p.a. |
> 2 to 3 years | 6.30% p.a. | 6.80% p.a. | 7.10% p.a. |
> 3 years to 1203 days | 6.35% p.a. | 6.85% p.a. | 7.15% p.a. |
1204 days | 6.30% p.a. | 6.80% p.a. | 7.10% p.a. |
1205 days to 5 years | 6.35% p.a. | 6.85% p.a. | 7.15% p.a. |
> 5 years to 10 years | 6.00% p.a. | 6.80% p.a. | 6.80% p.a. |
Note: The interest rates are effective from 1 June 2026.
Eligibility
The scheme is available for:
- Girls who finished class VIII from Kasturba Gandhi Balika Vidyalayas (regardless of whether they are SC/ST) from academic year 2008-2009 onwards and enrolled in class IX in state/UT government or local schools.
- All SC/ST girls studying in various government and local schools are also eligible for this scheme.
- Unmarried girls under the age of 16 on 31 March when they enroll in Class IX
Exclusions under PNB Balika Shiksha Scheme
Girls who fall in the below mentioned category, will not be able to open an account under PNB Balika Shiksha Scheme:
- Girls enrolled in private schools
- Girls enrolled in central government schools
Withdrawal Process
To withdraw the fixed deposit under the scheme, the student should meet the following condition:
- Attained the age of 18
- Have completed and passed the Class X board exams successfully.
- After enrolling in class IX, the girl recipient continued her studies for at least 2 years.
Yes Bank Fixed Deposit for Children
Yes Bank offers fixed deposit schemes for children with tenure ranging from 7 days to 10 years.
Features of Yes Bank Fixed Deposit for Children
The various features of Yes Bank Fixed Deposit for children are given below:
Tenure | Minimum: 7 days Maximum: 10 years |
Amount | Minimum: Rs.10,000 |
Premature withdrawal | Available |
Auto renewal | Available |
Overdraft facility | Available |
Senior citizens opening a fixed deposit with Yes Bank face no penalty on premature withdrawal, an added benefit alongside their higher interest rate.
Yes Bank Fixed Deposit for Children Interest Rates for Deposits Below Rs.2 Crore
The bank's current official fixed deposit rates for deposits below Rs.2 crore, which apply to this scheme, are shown below:
Tenure | Rate of Interest for General Public | Rate of Interest for Senior Citizens |
7 days to 14 days | 3.25% p.a. | 3.75% p.a. |
15 days to 45 days | 3.50% p.a. | 4.00% p.a. |
46 days to 90 days | 4.50% p.a. | 5.00% p.a. |
91 days to 120 days | 4.75% p.a. | 5.25% p.a. |
121 days to 180 days | 4.75% p.a. | 5.25% p.a. |
181 days to 271 days | 6.00% p.a. | 6.50% p.a. |
272 days to 335 days | 6.25% p.a. | 6.75% p.a. |
336 days to < 12 months | 6.50% p.a. | 7.00% p.a. |
12 months | 6.65% p.a. | 7.15% p.a. |
12 months 1 day to < 18 months | 6.75% p.a. | 7.25% p.a. |
18 months | 6.75% p.a. | 7.25% p.a. |
18 months 1 day to < 24 months | 7.25% p.a. | 7.75% p.a. |
24 months to < 35 months | 7.00% p.a. | 7.50% p.a. |
35 months | 6.90% p.a. | 7.40% p.a. |
35 months 1 day to < 36 months | 7.00% p.a. | 7.50% p.a. |
36 months to < 60 months | 7.00% p.a. | 7.75% p.a. |
60 months | 6.75% p.a. | 7.50% p.a. |
60 months 1 day to <= 120 months | 6.75% p.a. | 7.50% p.a. |
Note: YES Bank can change the interest rates at any given time without prior notice. The above-mentioned interest rates are effective from 2 June 2026.
Summary
Fixed deposit schemes for children, such as PNB's Balika Shiksha Scheme and Yes Bank's FD for minors, let parents build a secure, fixed-return corpus in a child's name until they turn 18. Compare each scheme's eligibility, tenure, and current rates before choosing, and remember that Sukanya Samriddhi Yojana remains a government-backed alternative for a girl child. Explore BankBazaar's fixed deposit rates and calculators to plan the right investment for your child's future.
FAQs on Fixed Deposit Schemes for Children 2026
1.What is a fixed deposit scheme for children?
A fixed deposit scheme for children is an FD opened in a minor's name that lets a parent or guardian build a lump sum for the child, with the funds and interest becoming payable once the child turns 18 or the FD matures.
2.Is interest on an FD opened for a minor taxable?
Yes, interest earned on a fixed deposit for children is taxable, and it is usually clubbed with the parent's or guardian's income under income tax rules.
3.How do I open a fixed deposit account for my child?
To open a fixed deposit account for your child, approach a bank that offers an FD scheme for children, such as PNB's Balika Shiksha Scheme or Yes Bank's FD for minors, and complete its application process as the parent or guardian.
4.Can children directly apply for FD schemes for children?
Most banks do not allow a child under 18 to invest in an FD directly, so a parent or guardian invests on the child's behalf and operates the fixed deposit scheme for children until maturity.
5.Why should I invest in an FD scheme for children?
Investing in an FD scheme for children offers assured, fixed returns along with financial planning for the child's future and the safety of a bank deposit.
6.Do banks offer FD schemes designed specifically for children?
Yes, several banks offer FD schemes designed specifically for children, typically featuring flexible tenures and account structures suited to a minor's needs, such as PNB's Balika Shiksha Scheme and Yes Bank's children's FD.
7.Who is eligible to open an FD scheme for children?
Generally, a parent or legal guardian is eligible to open an FD scheme for children on the child's behalf, and both must usually provide identity and age proof as part of the application.
8.Can parents keep contributing to a child's fixed deposit?
Contributions to most FD schemes for children are made as a single deposit at account opening; parents who want to save periodically can instead open a fresh fixed deposit or a recurring deposit for the same goal.
9.Can children access the funds in an FD scheme for children before maturity?
Whether a child can access the funds in an FD scheme for children before maturity depends on the specific scheme; Yes Bank's children's FD permits premature withdrawal, while PNB's Balika Shiksha Scheme keeps the deposit locked until its eligibility conditions are met.
10.How can parents choose the right FD scheme for children?
Parents choosing an FD scheme for children should compare the interest rate, tenure options, minimum deposit, and any special eligibility rules each bank sets, and weigh these against the reputation and service of the bank.
11.Do banks offer attractive interest rates on FD schemes for children?
Banks generally offer their standard fixed deposit rates on FD schemes for children, so it is worth comparing rates across banks before choosing where to open the account.
12.How do interest rate changes affect an FD scheme for children?
Once an FD scheme for children is booked, its interest rate is locked in for the full tenure, so later rate changes by the bank do not affect deposits that are already running.
13.Is Sukanya Samriddhi Yojana a type of FD scheme for children?
Sukanya Samriddhi Yojana is not a bank FD but a government savings scheme for a girl child, often compared alongside FD schemes for children because it also builds a lump sum over a fixed period.
14.How does Sukanya Samriddhi Yojana differ from an FD scheme for children in deposit rules?
Sukanya Samriddhi Yojana lets a guardian deposit within government-set minimum and maximum limits each financial year, and the account can be opened for a girl child only up to a specified age, unlike a bank FD scheme for children, which usually accepts a single lump-sum deposit at any time.
15.Does Sukanya Samriddhi Yojana pay more than an FD scheme for children?
Sukanya Samriddhi Yojana typically carries a government-notified interest rate that is revised periodically and has historically run higher than most FD schemes for children, along with tax benefits under Section 80C.
Prerna Surana is a Finance Content Writer with over three years of experience at Bank Bazaar. She specialises in creating insightful content on Credit Cards, Debit Cards, Taxes, and other BFSI products. Beyond finance, Prerna also writes about non-financial utility products such as Aadhar Card, Voter ID, and Government Certificates.
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