Planning your child’s future and education costs can feel overwhelming, especially with tuition fees rising every year. Fixed deposits remain one of the safest ways to build an education fund, and choosing the right plans can make a significant difference in reaching your savings goals. However, finding the best FD schemes for child education in 2025 can be overwhelming.
But don’t worry! Today, we will be explaining different aspects of a long-term investment scheme dedicated specifically to your child’s higher education. We will also present you with some really great child education investment options for 2025, worthy of your consideration.
This guide is designed for parents and guardians who want to secure their child’s financial future through smart investment choices. You’ll discover how to evaluate the best fixed deposit options available and make informed decisions that align with your family’s financial timeline.
Let’s begin our journey into finding the best child investment plan to secure your child’s future – in both educational and financial terms!
Understanding Fixed Deposits for Education Planning
Benefits of choosing fixed deposits over other investment options
Fixed deposits offer unmatched stability when you’re planning for your child’s education expenses. Unlike volatile market investments, you’ll know exactly how much money will be available when your child reaches college age. Your principal amount remains completely protected, and the fixed interest rates let you calculate precise future values. This predictability becomes crucial when you’re budgeting for specific milestones like your child’s higher education. Planning in this way also helps you take control over and secure your child’s future in general.
Tax implications
Many financial institutions offer you the option to claim tax deductions under Section 80C for fixed deposits for certain lock-in periods, reducing your current tax burden. The interest earned gets added to your taxable income, but many child education investment options in 2025 offer the relaxation of no TDS on earned interest besides providing higher interest than the traditional FDs. One such plan is the ‘Swarnim Bhavishya Yojna’ by the Samridh Bharat Cooperative Thrift & Credit Society Ltd., which we will discuss later in this blog.
Safety and assured returns for conservative parents
Bank fixed deposits come with deposit insurance coverage up to ₹5 lakhs per depositor, giving you complete peace of mind. You won’t lose sleep over market crashes or economic downturns affecting your child’s education fund.
But, did you know, there is an option, where your FDs are under no obligation or any risk of fluctuations as in the traditional securities market?
Yes, you heard it right. At Samridh Bharat Cooperative T&C Society Ltd., you can rest assured about the safety and the returns of your child’s education investment option in 2025.
The fixed interest rates at Samridh Bharat protect you from inflation risks, and the higher rates can provide you significantly better returns. On top of that, you can open multiple FDs with different amounts and maturity dates to maximize returns while maintaining safety.
Liquidity features for educational milestone planning
Most education FDs allow partial withdrawals for genuine educational expenses without breaking the entire deposit. You can structure multiple fixed deposits to mature at different educational stages – school admission, college entrance, or postgraduate studies.
At Samridh Bharat, you can enjoy higher interest rates with some of the best FD schemes for child education 2025, designed to secure your child’s future while maximizing your savings. The best part is that even in case of premature withdrawals, you still earn significantly better interest than most traditional savings or deposit options. Moreover, withdrawals are quick and hassle-free, giving you greater liquidity compared to conventional fixed deposit schemes.
Key Features to Look for in Children’s Education FDs
Flexible tenure options matching education timelines
Your child’s educational journey spans different phases, from primary school through college graduation. Look for FDs that offer tenure flexibility ranging from 5 to 20 years, allowing you to align maturity dates with specific educational milestones.
Competitive interest rates and compounding benefits
You’ll want to compare interest rates across banks, as even a 0.5% difference can significantly impact your returns over 10-20 years. The annual compounding makes your deposits grow quickly and without any risk of market fluctuations.
Partial withdrawal facilities for interim expenses
Educational expenses don’t always follow a predictable timeline. The Swarming Bhavishya Yojna is a child investment plan, that allows premature withdrawal of your amount with applicable interest rates as per the prematurity withdrawal chart, so that you have it when you need it.
Auto-renewal features for long-term growth
Planning your child’s education requires consistent long-term commitment. Choose FDs with auto-renewal options that automatically reinvest your matured amount at prevailing rates. This prevents gaps in your investment timeline and ensures continuous compounding.
Swarnim Bhavishya Yojna – A High-Return Child Education Investment Option in 2025
Samridh Bharat Cooperative Thrift and Credit Society Ltd. brings one of the most lucrative and best Children Fixed Deposit Schemes in Delhi. It offers 10X, that is, ten-times return on your principal amount after 19 years.
Swarnim Bhavishya Yojna – a long-term and high-return child investment plan with up to 12.82% annual interest. This plan is designed specifically for parents and families who want to invest in a Fixed Deposit plan for their child’s higher education.
Here are the key features that put this investment plan among the Best Fixed Deposit Plans for Children’s Education in 2025:
Minimum Deposit Amount: Start with as low as Rs. 5,000/- and further in multiples of Rs. 100/-. Here are some figurative examples to give you an idea of your actual return.
| Principal | Return (after 19 years) |
| INR 1,00,000 | INR 10,00,000 |
| INR 5,00,000 | INR 50,00,000 |
| INR 10,00,000 | INR 1,00,00,000 (One Crore) |
Nominee Facility: The Swarnim Bhavishya Yojna comes with Nominee Facility, for easy transfer of funds in case of any unwanted situation.
Premature Withdrawal: Withdraw your money anytime and still earn higher interest* than most traditional FDs.
*Interest as per the prematurity withdrawal chart of Samridh Bharat Cooperative T&C Society Ltd.
Special Features:
- No TDS on earned interest.
- Up to 90% loan on your deposited amount.
Eligibility
- The applicant must be a member of the Samridh Bharat Society.
- The minor must also have an account in the Society.
Conclusion
Saving for your child’s education may seem like a challenge in modern times. However, fixed deposits offer you a flexible and a feasible option to start investing in an appropriate child education plan. Samridh Bharat, a Delhi-based cooperative thrift and credit society is offering some of the best FD schemes for child education 2025, like the Swarnim Bhavishya Yojna. Besides having the ease of investing, a low initial deposit, flexible tenure, prematurity withdrawal and a ten-times return make this ideal.
By becoming a member and opening your kid’s account at Samridh Bharat Society, you can start investing in this plan and secure your kid’s future.
Frequently Asked Questions
Q1: Which is the best investment for kids?
Ans: Fixed deposits are among the safest investments for kids, offering assured high returns, flexibility. Various child investment plans, like Swarnim Bhavishya Yojna offer you higher interest rates.
Q2: Can we do FD for kids?
Ans: Yes, parents or guardians can open fixed deposits for kids, aligning maturity dates with educational milestones like school admissions or higher studies.
Q3: Which is the best fixed deposit for kids?
Ans: The Swarnim Bhavishya Yojna by Samridh Bharat Cooperative Society is one of the best FD schemes for children’s education in 2025.
Q4: Is the fixed deposit for children taxable?
Ans: Yes, as per the Section 64(1A) of the Indian Income Tax Act, 1961, interest from children’s bank FDs is taxable under a parent’s income. However, schemes like Swarnim Bhavishya Yojna don’t deduct TDS on interest, though the income must still be declared for tax purposes.
Q5: Can I open FD for a newborn baby?
Ans: Yes, parents can open FDs in their newborn child’s name. The minor needs an account in the society or bank offering the plan. Aadhar card of the child is mandatory.
Q6: How to invest 20k for a child?
Ans: You can invest ₹20,000 in long-term education FDs like Swarnim Bhavishya Yojna, which offers higher interest and flexible withdrawal options.
