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It is said that whatever is taught to children from childhood, the same kind of values develop in them. Along with teaching all the manners to your children, financial training should also be given and they should be taught to save from childhood. Usually, to teach children to save, parents make them deposit money in a piggy bank at home. The piggy bank is used only for depositing money. You do not get any additional benefit from this.
But there is also 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, a fixed amount has to be deposited every month and the maturity amount is received with interest. In such a situation, when children get their deposited amount increased, their happiness will be something else. Know here how 35,000 can be collected by depositing only 500 rupees per month.
R.D. Start Here
Although RD facility is also available in banks and it is of different duration. But the post office RD is for 5 years, but it gives good interest. Start investing in post office RD for better savings of your children. 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 in it. At present, this RD is getting interest at the rate of 6.7 percent.
In such a situation, if you get your children to deposit even Rs 500 every month, then Rs 6,000 will be deposited in a year and Rs 30,000 in 5 years. At the rate of 6.7 percent, you will get Rs 5,681 as interest on this and Rs 35,681 on maturity. Whereas if you deposit the same amount in a piggy bank, only Rs 30,000 will come out. There is no benefit of interest in this.
Children will also get this benefit of RD
Take your children along when starting their RD. Make them deposit the amount. This will help children understand how money is invested. A 5-year RD takes some time 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 received on the investment. This will help children understand the importance of investment. In this way, you can easily teach children the lesson of saving and investing while sitting at home and give a better direction to their financial future.
How to open an account for children
An account can be opened in the name of a child by visiting any branch of the post office. Mother or father can open an account in the name of a minor. Apart from this, a minor above 10 years of age can open an account in his/her own name. The facility of joint account is also available in Post Office RD. Apart from this, any number of RD accounts can be opened.