Be it a season of festivities or not, giving gifts has been deeply embedded in the Indian culture. We like to gift on different occasions and also spend a great deal of time to choose gifts. Hence, when you send gifts to your near and dear ones on festive, special events or even otherwise, make sure your contribution adds value so that it can indeed be memorable for your loved ones. The gifts need not be expensive but ideally should touch and uplift the lives of loved ones, making them feel special. In terms of adding value, if you gift an investment instrument to someone, it will make a definite impact on their lives. 

Add-on credit cards, gift cards, mutual funds are something which can come in handy in such situations but opening a fixed deposit can be helpful in comparison to the options above. As per experts, financial gifts like fixed deposits are secure, not subject to market risks and can have a linear growth in terms of finances. Let’s understand how you can give the best financial gift through FD by various means:

The gift to a newborn:

There are multiple types of fixed deposit schemes offered by banks & NBFCs primarily for children. The plans allow parents or guardians to invest in fixed deposit accounts on behalf of their children. Note that some of the fixed deposits schemes for children offer additional protection in the form of insurance as well. Hence you can gift this type of FDs to newborn, which will add significant value to their upbringing. There are schemes like the Allahabad Bank Sishu Mangal deposit scheme for minors between the age of 1-15 and any child with Indian citizenship between the age of 1-15 is eligible for this scheme. There are few banks like Canara Bank, HDFC Bank, Bank of India that allow a minor to open a fixed deposit account under someone’s guardianship. You can also gift such investment options with the best FD interest rates to the children.

The gift to a married couple:

Weddings in India are a costly affair, and more understandably so, friends and relatives who attend the weddings offer expensive gifts and cash to the married couple. However, gifting a fixed deposit as a wedding gift is an excellent idea because the couple can avail tax benefits under 80C provided the lockin period is three years. Hence rather than expensive gifts, if you could provide them with an Investment Option, they can get a significant amount as a steady source of income. Most of the Indian parents open fixed deposits for their sons and daughters for a reason mentioned above. Note that such FDs also provide good returns and have lesser market risk compared to the majority of investment options. 

The gift to elders:

Gifting fixed deposits to elders is an excellent idea as opening an FD in the name of senior citizen attract better FD interest rates. In most cases, the interest rates can be 0.5% to 0.6% more than the standard FD rates. 


Gifting is a beautiful way to express our love and affection to someone, and if the gift can empower them financially, then it serves its purpose.

Categories: Business


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