Every parent dreams of securing their child’s future with the right financial planning. The State Bank of India (SBI), India’s largest public sector bank, offers safe and reliable investment options designed to help families build a strong financial foundation. One such scheme allows parents to invest just ₹6,000 per month and receive nearly ₹4.25 lakh in 5 years, making it an excellent choice for education or other future needs of children.
How the Scheme Works
This plan works like a Recurring Deposit (RD), where you deposit a fixed amount each month. Over the chosen tenure, the deposits earn compound interest, leading to a sizable corpus at maturity. Since it is backed by SBI, the investment carries minimal risk with assured returns, unlike market-linked options.
Deposit and Return Calculation
If a parent deposits ₹6,000 per month for 5 years (60 months), the total investment will be ₹3,60,000. With SBI’s RD interest rate of around 7% per annum, the maturity amount becomes approximately ₹4.25 lakh. This gives an extra earning of about ₹65,000 in interest.
Example Table of Returns
| Monthly Deposit | Tenure | Total Investment | Interest Rate | Approx. Maturity Amount |
|---|---|---|---|---|
| ₹6,000 | 3 years | ₹2,16,000 | 7% | ₹2,35,000 |
| ₹6,000 | 5 years | ₹3,60,000 | 7% | ₹4,25,000 |
| ₹6,000 | 10 years | ₹7,20,000 | 7% | ₹10,35,000 |
This shows that the longer you stay invested, the more powerful the compounding effect becomes.
Benefits of Choosing SBI’s Scheme
SBI’s recurring deposit option is tailor-made for parents who want disciplined savings without worrying about market risks. It is flexible, secure, and allows premature withdrawal in emergencies. Additionally, the scheme helps instill a savings habit, ensuring that funds are available when a child needs them most, such as for higher education, skill development, or marriage.
Why It Is Ideal for Child’s Future
Children’s education and future planning require funds at the right time. By investing in this SBI scheme, parents can systematically build a corpus with guaranteed returns, ensuring peace of mind. Unlike mutual funds or equity, this investment comes with no volatility risk and offers stability along with attractive returns.
Final Thoughts
SBI’s recurring deposit plan demonstrates how small monthly savings can accumulate into a large, useful corpus in just a few years. By depositing ₹6,000 every month for 5 years, parents can comfortably build a fund of over ₹4.25 lakh a perfect step toward securing their child’s future needs.