Since you are reading this, congratulations to you! The arrival of a new-born baby is a call for celebration and jollity all around. While the infantile cries and laughter will fill your heart with joy, the responsibility of your baby will keep you on your toes. Having a new-born not only requires the investment of your time but will also requires a huge financial investment. A bright future for your children is best and biggest gift you can provide for your child. In order to ensure a bright future for your new-born child, you will need to plan a long-term investment by thinking ahead and weighing between multiple options. By making the right choice, you will not have to look back or put a restraint to your children’s dreams when they grow up.
To plan for your child’s future, the critical points you will need to focus on are health & education. Planning not only means to consider that there will be expenses, you also need to estimate the amount you will require at certain time period for all kinds of expenses. For instance, a high-school education or a specialized management course might cost INR 20 Lakhs right now, but after 15-20 years, it will cost around 35-40 lakhs depending upon the rate of inflation. Furthermore, you will also need to take care of any illnesses, vaccinations, or emergency medical situation for both yourself and your children.
Before taking care of your child’s future, you need to take care of your future first. It might sound odd, but you are the protector and the legal guardian of your child. So, you can start by drafting your will and getting a life insurance for yourself. A life insurance will provide assurance regarding your child’s future in case anything inevitable happens. The next step is to bump your health insurance and also include your new-born child into your health plan. This will not only protect you from any emergency medical expenses but will also ensure that your child’s medical expenses regarding vaccination and any other medical expenses are covered.
Education expenses for your baby are a significant expense that will arise in the future. Furthermore, education is not just a one-time expense, as it will change according to the direction that your child takes towards his/her future. Only by planning your investments correctly, you can ensure that all the bases are covered. Considering investments, Fixed Deposits can be a multi-faceted solution for educational expenses. Fixed Deposits for Child help in covering high-school education costs through short-term FDs as well as college education through laddering of your FDs over a long term. Bajaj Finance provide Fixed Deposits with the highest level of safety (FAAA rating by Crisil) as well as the highest rate of interest. Furthermore, by investing in a cumulative FD, your deposit amount will be re-invested at a quarterly basis to bring you even higher returns.
Bajaj Finance can be the most appropriate FD for child as with an 8.40% interest rate, you can earn 2,57,000 worth of interest on an investment of INR 5,00,00 for 5 years. You can later re-invest this amount to consistently grow the education fund for your new-born child. If you require assistance in calculating the FD amount at maturity, you can use this FD calculator on the website. Only by meticulous planning and careful spending, your child’s dreams will turn into a living breathing reality.