Usually, to teach savings to children, parents make them put their money in a piggy bank at home. The piggy bank only works for depositing money. It does not give you any extra benefit. But there is a piggy bank in which if you make children put money, they will also get interest on it.
It is said that whatever you teach children from childhood, the same kind of values develop in them. Along with teaching all manners to your children, financial training should also be given and they should be taught savings from childhood. Usually, to teach savings to children, parents make them put their money in a piggy bank at home. The piggy bank only works for depositing money. It does not give you any extra benefit.
But there is a piggy bank in which if you make children deposit money, they will also get interest on it. We are talking about Recurring Deposit. RD is also like a piggy bank. In this, every month you have to deposit a fixed amount and the maturity amount is received along with interest. In such a situation, when children get their deposit amount increased, their happiness will be something else. Know here how 35,000 can be collected by just depositing 500 rupees per month.
Start RD here
Although RD facility is also available in banks and it is of different tenures. But post office RD is for 5 years, but it gives good interest. For better savings of your children, start investing in post office RD. The best thing about post office RD is that it can be started with just Rs 100 per month. There is no limit on the maximum deposit amount. At present, interest is being given on this RD at the rate of 6.7 percent.
In such a situation, if you get children to deposit even 500 rupees every month, then 6,000 rupees will be deposited in a year and 30,000 rupees will be deposited in 5 years. At the rate of 6.7 percent, 5,681 rupees will be received as interest on this and 35,681 rupees will be received on maturity. Whereas if the same amount is deposited in a piggy bank, only 30,000 rupees will come out. There is no benefit of interest.
Children will also get this benefit of RD
While starting the RD of children, take them along with you. Get them to deposit that amount. This will make the children understand how money is invested. It takes some time for a 5-year RD to mature. In such a situation, children will have to be a little patient for that money. This will develop the habit of being patient in them. When they get the money on maturity, explain to them how their money has grown due to the interest on the investment. This will make children understand the importance of investment. In this way, you can easily teach children the lesson of saving and investing at home and give them a better direction for their financial future.
How to open an account for children
An account can be opened in the name of a child by going to any branch of the post office. The mother or father can open an account in the name of the minor. Apart from this, a minor above 10 years of age can open an account in his or her name. The facility of joint account is also available in Post Office RD. Apart from this, RD accounts can be opened in any number.
