Child FD schemes: PNB, YES Bank and Post Office options parents can consider in 2026

Parents who want to build a money fund for their child can pick from bank fixed deposits and government-supported small-savings programs. Choices like PNB Balika Shiksha, YES Bank FDs, Sukanya Samriddhi and PPF are very different when it comes to who can use them how long they last what they earn and how they can be taken out.

PNB Balika Shiksha FD: ₹3,000 deposit

PNB’s Balika Shiksha program is a help for eligible girl students, not a regular FD that anyone can use. Eligible girls usually need to have passed Class VIII from a Kasturba Gandhi Balika Vidyalaya or for SC/ST girls passed Class VIII and are in Class IX at a government government-aided or local-body school.

The account is for girls under 16 years old as of March 31 when they start Class IX. Private unaided and Central government schools are not included.

In this program the government puts ₹3,000 in the girls name. The money can be taken out when she is 18. There are some conditions. The girl must pass the Class X board exam. Keep studying for at least two years after enrolling in Class IX. There is no way to take the money out before time or to cancel early. The account can be renewed automatically for 30 days in some situations.

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YES Bank child FD: Up to 8%

YES Bank provides deposits that can be used for a minor with time periods from seven days to 10 years. For deposits under ₹2 crore the rates range from 3.25% to 8% for the public based on the time period. The highest rate listed is 8% for an 18-month deposit. Senior citizens get a rate benefit on certain time periods.

The FD allows taking money early auto-renewal and an overdraft option, which gives parents more choices compared to the PNB Balika Shiksha program.

Post office options for children

Parents can also look at government-supported small-savings products. Sukanya Samriddhi Yojana is for girls under 10 years old. Allows yearly deposits of ₹250 to ₹1.5 lakh. The current rate is 8.2%. The scheme offers Section 80C benefits with money received when it ends being tax-free according to the rules.

Sukanya Samriddhi Yojana (SSY): This is for a girl child. You can open the account before she turns 10. Yearly deposits go from ₹250 to ₹1.5 lakh. The interest rate is 8.2% and the money you put in qualifies for Section 80C benefits and the money you get when it ends is tax-free.

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Public Provident Fund (PPF): Parents can open a PPF account in the childs name. It lasts for 15 years. You can take some money out after seven years. The money you put in qualifies for Section 80C deductions and the returns are tax-free. The interest rate is 7.1%.

National Savings Certificate (NSC): This is a five-year fixed-income option. It gives 7.7% interest and guaranteed returns. The money you invest qualifies for Section 80C deductions making it good for parents who want a set time period for savings.

Post Office Recurring Deposit (RD): With monthly deposits starting at ₹100 RD helps with savings. It has a five-year time period. Currently gives 6.7% interest.

Post Office Time Deposit (TD): TD offers one, two three and five-year options, with interest rates from 6.9%, to 7.5%. The five-year option qualifies for Section 80C benefits. Can work well for planned education costs.

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