Children Saving Account | Kids Savings Account
Now-a-days, we see that parents start saving money for their children right from the day they are born and by supporting this thought many banks have designed and introduced savings account specially for children.
Kids Savings Account can be called a piggy bank for the Kids that will not just keep their money safe but:
- Will allow kids at a young age can start saving the amount received from parents/ guardian into this account
- Will inculcate the habit of saving in the kids
- Will generate an interest on the deposited money
- Will allow the child to withdraw and use the money whenever required
- Will facilitate him to make smart purchases by way of debit card
- Will teach them to operate their account in a better way
- Will also advise them from time to time about better investment options
- Will offer the education loan for kids at a competitive rates for higher education of children
Features of Children's Saving Account
- It is opened to promote savings.
- There is no restriction on the number and amount of deposits. However, some banks have kept cap on maximum amount deposited in a Children's account.
- Withdrawal of funds from the account is allowed either by cheque, withdrawal slip or from ATM.
- The rate of interest is in the range of 3.5% to 6% p.a.
- It is of continuing nature i.e. has no maximum period of holding.
- A minimum amount has to be kept on saving account which differs from bank to bank.
- Cheque book, passbook, Debit Card and Net banking facilities are offered in this account.
Benefits of Children's Saving Account
- The first and foremost benefit of having a Children's savings account is that it earns interest on the funds deposited.
- It is easy to open and start with a Children's savings account.
- It inculcate a habit of savings in your children at an early age.
- It helps you to store your additional funds safely with the bank.
- Cash withdrawal facility is available i.e. ATM service lets you withdraw cash from anywhere in India, anytime. You can withdraw from the bank branch as well.
- Money transfer facility through net banking is provided on it.
- Maintenance of minimum balance requirement is lower than the regular savings account. Some banks even offer "no minimum balance required".
- Some banks provide the facility where you can link your child's account with your savings account in the same bank which will make your child eligible for an education insurance cover.
- Some of the banks provide life insurance and accident insurance cover while opening a Children's savings account.
Who Can Open Children's Account?
- Any natural guardian on behalf of the minor (as under guardian).
- Any natural guardian, jointly with the minor where the minor will be the first account holder.
- Any minor of age 10 and above in his/ her name which will be operated by the minor.
- Any legal guardian in the name of the minor (as under guardian).
How to Open Children's Savings Account?
- Make research and decide the bank where you want to open Children's Bank Account
Many banks offer Children's Saving Account. You can compare them on the basis of interest rate and other services offered by them and take a decision regarding where you would like to open the account. - Approach the Bank you Selected
Once the bank is decided, you need to approach the bank you short listed. After reaching there, you have to meet the bank officer regarding the opening of the kid's savings account. He will provide you the Account Opening Form which is used to open kid's bank account. - Fill up Account Opening Form and Attach Mandatory Documents
The Account Opening Form must be duly filled completely and signed at required space. You need to fill up all the necessary details such as name, address, contact number and other details wherever required. Two or three specimen signatures are required on the given space. If the account is opened in joint names, then the form must be signed jointly. - Submit Account Opening Form along with Required Documents
You need to submit duly filled in account opening form to the bank officer along with required documents. - Bank Officer will verify your Account Opening Form
The bank officer will verify the account opening form to check if it is complete in all respects. He will also check the attached documents with the originals. After getting satisfied fully, he will process the application and allot the account number. - Deposit Amount in the Children's Savings Account
After getting the account number, the necessary amount is to be deposited in the account. After depositing the initial amount, the bank will issue a pass book, a cheque book, debit card, etc. Some banks send them through mail.
Operations of Children's Savings Account
For accounts of minors below 10 years of age, the guardian must operate the account. Minors above the age of 10 years can themselves operate the account.
Important Points for Children's Savings Account
- Usually, banks prescribe daily transaction limits on Children's Savings Account
- Parents need to be vigilant and keep an eye on the operations of Children's Savings Account
- Once the minor turns 18, the account will turn into a regular savings account automatically and benefits associated with kid's account will not be available. However, benefits and limits associated with the regular savings account will become available to him/ her.
- The guardian cannot operate the account on the account holder's behalf after he/ she turns major (attains 18 years of age).
How are child/ kid's savings accounts different from regular savings accounts?
- Kid's Savings Accounts can be created with parent's consent
- Kid's Savings Accounts offer limited and lesser facilities such as some banks do not allow fund transfer facility, some banks do not provide ATM/ debit card, etc.
- Some banks have kept a cap on maximum amount that can be deposited in kid's savings account
- Banks usually allow minors to operate the account individually, only when they turn at least 10 years old and can sign on their own
Banks Providing Children Saving Account
Bank | Name of Account | Average Monthly Banalce | Find Details |
---|---|---|---|
Allahabad Bank | Sishu Mangal Deposit Scheme | Nil | View Details |
Andhra Bank | AB Little Stars | Rs. 500 for urban & metro branches; Rs. 250 for semi-urban & rural branches | View Details |
Andhra Bank | AB Teens | Rs. 500 for urban & metro branches; Rs. 250 for semi-urban & rural branches | View Details |
Axis Bank | Future Stars Savings Account | Rs. 2500 | View Details |
Bank Of Baroda | Gen Next Junior Account | Rs. 500 | View Details |
Bank Of Maharashtra | Mahabank Yuva Yojana | Nil | View Details |
Canara Bank | Champ Deposit Scheme | Rs. 100 | View Details |
Canara Bank | Junior Savings Account | View Details | |
Citi Bank | Junior Account | Nil | View Details |
Hdfc Bank | Kids Advantage Fund | Rs. 5000 | View Details |
Hsbc Bank | Premier Account | Nil | View Details |
Icici Bank | Young Stars Savings Account | Rs. 2500 | View Details |
Icici Bank | Smart Star Savings Account | Rs. 2500 | View Details |
Idbi Bank | Power Kids Account | Rs. 500 | View Details |
Idfc First Bank | Minors Savings Account | View Details | |
Indusind Bank | Young Saver Savings Account | Rs. 5000 | View Details |
Karur Vysya Bank | Jumbo Kids Savings Account | Nil | View Details |
Kotak Mahindra Bank | Junior Account | Nil | View Details |
State Bank Of India | PehlaKadam | Nil | View Details |
State Bank Of India | PehliUdaan | Nil | View Details |
United Bank Of India | Chidren Savings Account | Rs. 50 | View Details |
Yes Bank | My First Yes Account | Rs. 2500 | View Details |