Fixed Deposit for Child Education

Benefits of Airtel Finance Fixed Deposit for Child Education Savings

With Airtel Finance fixed deposit you can create a dedicated fund for your child's educational needs while enjoying hassle-free banking:

Guaranteed Returns up to 8.5%
Earn higher fixed deposit interest rates than most savings accounts, helping your money grow steadily.
100% Digital Process
Open and manage your child education FD completely online without paperwork or branch visits.
Flexible Deposit Amounts
Start with just ₹1,000 and top up as per your financial convenience.
DICGC Insured up to ₹5 Lakh
Enjoy government-backed protection to secure your child’s education fund.
Premature Withdrawal Option
Access your funds after just 7 days in case of emergencies or unexpected educational expenses.

Information about Airtel Finance Fixed Deposit for Child Education Savings

Airtel Finance fixed deposit is designed for busy parents who want to secure their child’s future without complicated banking procedures. Backed by established financial institutions and regulated by RBI, child education FD offers competitive interest rates while maintaining complete transparency.

The digital-first approach means you can track your investment, calculate maturity amounts, and even make premature withdrawals if needed—all through a simple, user-friendly interface.

Book FD Book FD

How to Apply for Airtel Finance Fixed Deposit for Child Education Savings

Setting up child education FD is incredibly simple:

Step 1: Download the Airtel Thanks App and complete your KYC verification

Step 2: Navigate to the Finance section and select "Fixed Deposit"

Step 3: Enter the deposit amount and choose your preferred tenure (plan according to your child's age)

Step 4: Upload required documents—PAN, Aadhaar, and bank details

Step 5: Complete payment and receive instant confirmation with an FD certificate

Features of Airtel Finance Fixed Deposit for Child Education Savings

The features of a child education FD are as follows:

High Interest Rates
Earn up to 8.5% annual interest, with special rates for senior citizens and women.
Flexible Tenures
Choose deposit periods that align with your child's educational milestones.
Premature Withdrawal
Access funds after 7 days if urgent education expenses arise.
No Hidden Charges
Complete transparency with no processing fees or maintenance charges.
Digital Certificate
Instant FD certificate and easy online tracking of your investment.
Auto-Renewal Option
Set up automatic renewals to keep your child's fund growing consistently.

Documents Required for Airtel Finance Fixed Deposit for Child Education Savings

The required fixed deposit documents are as follows:

Document Type	Example
Identity Proof	PAN Card / Aadhaar Card
Address Proof	Aadhaar Card / Driving License / Passport
Bank Details	Bank account number and IFSC code
KYC Documents	Aadhaar / Passport / Driving License

FAQs on Airtel Finance Fixed Deposit for Child Education Savings

What is a Loan Against FD?

A Loan Against FD (Fixed Deposit) is a secured loan where you use your fixed deposit as collateral to borrow funds. This type of loan allows you to access liquidity without breaking your FD prematurely. The loan amount can be a certain percentage of the FD’s value, and you continue to earn interest on the FD. It’s a convenient option for meeting financial needs while maintaining your investment.

Benefits of Taking a Loan Against FD

Taking a Loan Against FD offers several benefits, including lower interest rates compared to unsecured loans, quick approval and disbursement, and no prepayment penalties. Additionally, your FD continues to earn interest, providing dual benefits. This type of loan also doesn’t require extensive documentation, making the process simple and hassle-free. It’s an excellent way to meet urgent financial needs without compromising your savings.

Eligibility Criteria for Loan Against FD

The primary eligibility criterion for a Loan Against FD is having an active fixed deposit with the bank. Some banks may require the FD to have a minimum deposit amount and specific tenure. Generally, both individual and joint FD holders are eligible. The borrower should be the primary holder of the FD, and the loan can be availed by residents, NRIs, and senior citizens.

Loan Amount and Interest Rates

The loan amount for a Loan Against FD typically ranges from 70% to 90% of the FD value, depending on the bank’s policies. The interest rate for this loan is usually 1-2% higher than the interest rate earned on the fixed deposit. This makes it a cost-effective borrowing option compared to other loans, as the rates are relatively lower due to the secured nature of the loan.

Application Process for Loan Against FD

Here is how to apply for your loan against FD on the Airtel Thanks app:

Open the Airtel Thanks app

Go to the Shop tab

Select Airtel Finance

If you have already booked your FD, you will be able to see the option to apply for a loan on the FD

Apply for the loan

Your loan will be approved in no time!

How Interest is Calculated on Loan Against FD

Interest on a Loan Against FD is calculated based on the loan amount and the interest rate, which is usually a few percentage points above the FD interest rate. Interest is charged only on the borrowed amount, and repayment can be made through EMIs or as a lump sum. The calculation method ensures that you pay interest only on the utilized funds, making it a cost-effective option.

Tax Benefits and Obligations for Loan Against FD

While a Loan Against FD doesn’t offer direct tax benefits, it has certain advantages. The interest paid on the loan is not eligible for tax deductions. However, since the FD continues to earn interest, that interest income remains subject to tax as per your applicable slab. It’s important to note that the loan itself is not considered income and hence not taxable.