Best Savings Accounts for Minors

Last Updated : May 14, 2024, 5:49 p.m.

Having a Savings Bank Account is one of the primary things that people choose to save their hard-earned money. That’s why over 80% of our population has a Savings Bank Account. A lot of Parents like to save for themselves and also for their children with these accounts. But what if an individual wants to make his or her child learn the importance of money management skills in the early years? Well, for such purposes, you can open a Savings Account for Minors who are below 18 years of age. Several banks offer Savings Account , especially for Minors.

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Your child can earn the interest on money in his or her account alongside keeping the money safe. A Savings Account for Minors will ensure that you don’t have to wait until your child reaches the age of maturity (18 years of age) to open a savings account. This account is specifically made for minors and also offers a wide range of benefits like Debit Card, Cheque Book. A child can understand the basic functioning of a savings bank account at an early age which will benefit in the future. In this article, we will cover some of the best Savings Account for Minors available now so that you can choose the suitable one for yourself. Keep reading to know more!

How Does a Minor Savings Account Work?

Before knowing about the top savings account for Minors in India, it is important to have a brief knowledge of them. Banks usually offer two kinds of Minor Savings Accounts – One for children below 10 years of age and Another for children between 10 to 18 years of age. The account for below 10 years of age can only be operated jointly with a parent or guardian whereas the latter can be operated individually by the child itself.

However, there is one thing that you need to remember that a minor savings account becomes operative as soon as the child becomes an adult i.e. 18 years old. After completing the simple paperwork, the account will be converted into a regular savings account and parents can no longer operate the account. Several top banks offer exclusive Savings Account for Minors, such as State Bank of India (SBI), HDFC Bank, ICICI Bank, Kotak Bank, Union Bank of India, IDFC First Bank, etc.

Best Savings Account for Minors

We are showing the features of some of the top Savings Account for Minors. Check it out to know more!

SBI Savings Account for Minors

State Bank of India (SBI) is the leading public sector bank of India that offers a wide range of financial products to customers. When we talk about Savings Account for Minor, SBI offers two different banking products named ‘Pehla Kadam’ and ‘Pehli Udaan’ that help children understand the importance of money management. While ‘Pehla Kadam’ Savings Account is solely designed for minors of any age, ‘Pehli Udaan’ is for those who are between 10 to 18 years of age and can sign uniformly. We are showing some of the important features of both of these Savings Account for Minors below. Have a look.

SBI Pehla Kadam is a savings account designed specifically for minors (children below 18 years old) offered by State Bank of India (SBI). It's a great way to introduce your child to saving money and get them familiar with basic banking concepts.

Here are some key features of SBI Pehla Kadam:

• Joint Account: This account requires a parent or guardian to be a joint holder along with the minor.

• No Minimum Balance: There's no minimum balance requirement to maintain the account, making it accessible for anyone.

• Easy Account Opening: The account can be opened at any SBI branch.

• Free Passbook: A special child-friendly passbook is provided free of charge to track deposits and withdrawals.

• Digital Banking Access (Limited): The minor gets limited access to internet banking and mobile banking features, allowing them to view account details but with restricted transaction capabilities (subject to daily limits).

• Benefits for Learning: This account can be a valuable tool to teach your child about saving habits, managing money, and understanding basic banking functionalities in a safe and controlled environment.

Here's a table summarizing the key points:

SBI Pehli Udaan is another savings account offered by State Bank of India (SBI) specifically designed for minors (children below 18 years old). It caters to a slightly older age group compared to Pehla Kadam and offers more independence in managing finances.

Here's a breakdown of SBI Pehli Udaan:

• Sole Account for Minors: Unlike Pehla Kadam, Pehli Udaan is a standalone account opened in the minor's name. However, a parent or guardian's involvement might still be required depending on the minor's age and bank regulations.

• Age Eligibility: Pehli Udaan is generally for minors above 10 years old who can sign on the account opening form. Specific age limits may vary, so check with SBI for current guidelines.

• Basic Banking Features: Pehli Udaan offers functionalities like deposits, withdrawals (with some limitations), and potentially limited internet banking access for managing the account.

• Encourages Financial Independence: This account allows minors to experience a sense of ownership and responsibility for their finances, helping them develop good saving habits and basic money management skills.

Here's a table comparing Pehla Kadam and Pehli Udaan:

Choosing Between Pehla Kadam and Pehli Udaan:

• Pehla Kadam is ideal for younger children where parental guidance and control over finances are preferred.

• Pehli Udaan is suitable for older minors who can handle some level of financial responsibility and want to learn more independent money management.

Overall, SBI Pehli Udaan empowers minors to take ownership of their finances while still providing a safe environment to learn under parental guidance (if applicable). Be sure to consult SBI for the latest information on eligibility requirements, account features, and any applicable fees.

HDFC Bank Kids Advantage Account

When we list down the top private banks of India, the name of HDFC Bank will certainly find a mention. HDFC Bank also offers Savings Account for Minors via its HDFC Bank Kids Advantage Account. This account can help your children develop a habit of money management. The most amazing thing is it can be started with as little as INR 1,000 a month. There are several benefits like ATM-cum Debit Card, Insurance facility, etc. Your child will have limited access to funds until the age of 18. The parent/guardian must have an HDFC Savings Bank Account to open the HDFC Kids Advantage Account. We are showing some of the important features of the HDFC Bank Kids Advantage Account below. Check them out.

ICICI Bank Young Stars Account: Savings Account for Minors

ICICI Bank, which is one of the leading private banks of India, also offers Savings Account for Minor that helps children learn important money-saving skills at an early age. With its ICICI Bank Young Stars Account, you can open and operate a minor savings account to plan your child’s financial future. With this Savings Account for Minors, you can avail of several exciting features.

One of these features is the Money Multiplier Facility through which you can earn higher interest on your amount. Just set a fixed limit above which the money in the Young Stars Account will get transferred into Fixed Deposit. Some of the other features of this ICICI Savings Account for Minors are listed below. Please have a look!

Bank of Baroda Kids Bank Account

Bank of Baroda has emerged as a stronger public bank than it already was. Among its wide range of banking products, Bank of Baroda provides savings account for Minors to children below 18 years of age. If you are a parent and want to give a wonderful money-saving habit to your kid, a Bank of Baroda Champ account could be a perfect option for you. With this account, you will not need to pay any charges on the School Fee payment with Demand Draft (DD) or NEFT or IMPS for a maximum amount of INR 1 lakh per month.

We are showing some other features of the Bank of Baroda Champ Account below. Please check it out.

Axis Bank Future Stars Savings Account

One of the best private banks of India, Axis Bank also provides an exclusive banking product to your children with its Future Stars Savings Account. With this Savings Account for Minors from Axis bank, you can give your children a strong financial head start. Your child will also understand the importance of handling money responsibly. Some special features make this Savings account one of the best in the market. For instance, one of them is if your child is above 10 years of age, he or she can get a Debit Card with his/her favorite image on the card on having an Axis Bank Future Savings account.

In the below table, you can see some of the important details related to the Axis Bank Future Stars Savings Account.

PNB Junior Savings Fund Account

There is little doubt about the excellence of the banking products offered by the Punjab National Bank (PNB). One such amazing product is the PNB Junior Savings Fund Account. This can be opened by any minor of any age. If the minor is below 10 years of age, it is important to have a parent/guardian to operate the account. Children between 10 to 18 years of age can open and operate their savings bank account independently.

If you want to know some of the exciting features of the PNB Junior Savings Fund Account, you can check the below table.

Kotak Mahindra My Junior Account

Kotak Mahindra Bank is famous for its extraordinary banking services and when we are talking about the Savings Account of Minors, we cannot exclude its My Junior Account. This account will help in cultivating a saving habit in your children at an early age. And not only this, this savings account for minors is an excellent way to get several privileges across Dining, Entertainment and Shopping on the famous Kids brands like Firstcry, TINKLE, Freshmenu, etc.

You can also get upto 4% Interest rate on the Junior Savings Account Balance and the Guardian/Parents’ saving account balance. You can easily open a My Junior Account by visiting the official website of Kotak Mahindra Bank or the nearby branch. The below table has some of the important details related to the Kotak Mahindra My Junior Account. Please have a look!

So, these are some of the Top Savings Account for Minors offered by leading private and public banks. You can choose the most suitable one for you as you have a better understanding of them.