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Savings Accounts for Millennials

Savings Accounts for Millennials

Last Updated : March 18, 2024, 5:13 a.m.

As a millennial, you may be either enjoying the buzz of college life or embracing the challenge of corporate arena. Doesn’t matter which stage of a life you are in, a savings account remains relevant to your cause. This is due to the fact that a savings account gives you the privilege of depositing the amount to yield it only bigger a few years later.

There’s every likelihood that you could be a few months away from becoming a major, being a millennial. In that case, you can open a minor account and get it converted to a full-fledged savings account the moment you turn 18. However, those with 18 years and above can go for accounts with zero balance and star-studded services. So, what are those savings accounts a millennial can open? To find the answer, stay glued to the article.

How Should Millennials Choose a Savings Account?

The choice of a savings account should be based on the stage of life you are in. There are different savings accounts to suit the needs of people at their respective life cycle stage. Let’s find different savings bank accounts available to suit different categories of millennials.

Best Savings Accounts for Millennials About to Become Major

Those sitting in this stage of life can open the minor account now and get it converted to a regular savings account. Now, the quest should be to find the best minor account available. You can thus glance at the table below to compare different minor accounts and choose one or more out of them.

Savings Account Name Eligibility Minimum Balance Required Interest Rate (In % p.a.) Services Offered
SBI PehliUdaan Minors above the age of 10 years who can sign as the account will be opened only on their name NIL 2.70%
  • Personalized cheque book (10 leaves) to be issued in minor’s name
  • Child’s photo embossed ATM-cum debit card to be issued in minor’s name
    Viewing rights and limited transaction rights such as IMPS, bill payment, top-ups, daily transaction limit of up to INR 2,000
  • Auto Sweep facility with a minimum threshold of INR 20,000. Sweep in multiple of INR 1,000, subject to a minimum of INR 10,000
  • An option for the opening of a recurring deposit, without any charge, in the standing instruction
  • Personal Accident Insurance Cover
  • Smart Scholar - a market-linked child plan offered by SBI Life with the benefit of inbuilt premium waiver and loyalty additions
  • Nomination facility available
  • Issuance of specially designed branded passbook free of cost
  • No inter core charges for fund transfers
HDFC Kids Advantage Account Parents need to have a savings account with HDFC before opening a minor account INR 5,000 (Minimum average monthly balance) 3.00-3.50%
  • 25 cheque leaves per financial year to be issued free of cost. A charge of INR 75 to be levied on ordering additional cheque book consisting of 25 leaves
  • Free issuance of passbook
  • No cheque collection charges - local clearing zone
  • Free TDS Certificate
  • Balance certificate for the current year comes free
  • Four free cash transactions in a month including both deposit and withdrawal
  • No charges on deposit of local cheques for outstation accounts
  • No charges on online fund transfer via NEFT
ICICI Smart Star Savings Account Account to be opened in the name of minor attaining more than 10 years but below 18 years of age. They can open as well as operate the account As specified by the bank 3.00-3.50%
  • Free personalized debit card with spend and withdrawal limit of INR 5,000
  • Free access to internet banking and mobile banking
  • No fee on e-statement
  • Minor can issue the cheques
Kotak Junior Savings Account Account to be opened in the name of minor Zero balance up to 6.00%
  • No charges on online fund transfer via NEFT/RTGS/IMPS
  • No charges for four transactions or up to INR 2 lakh, whichever comes earlier, in a month
  • No ATM or debit card charges
  • Passbook to be issued free
  • Get current year balance and interest statement free
Bank of Baroda Gen-Next Junior Those above 10 years but below 18 years of age can get the account opened in their name provided he/she must be able to read and write any of the recognized languages INR 500 (Quarterly average balance) 3.50-4.00
  • First cheque book with 20 leaves to be given free for 6 months
  • Free standing instruction
  • Anywhere banking facility
  • Cash deposit & withdrawal facility
PNB Junior SF Account Minor above 10 years can open the account on their name Zero balance 2.90%
  • First cheque book with 20 leaves to be given free for 6 months
  • NEFT transactions free up to INR 10,000 per day
  • No charges for demand draft issued in favour of school or college fee
  • View access to internet & mobile banking

Best Savings Accounts for Millennials Enjoying Their College Life

Seeking a student account where you can deposit the money and withdraw the same for your study and other needs? Choose from the following accounts that have the best of features available.

Account Name Eligibility Minimum Balance Required Interest Rate (% p.a.) Services Offered
IOB Student Students with 16 years and above can open this account INR 500 7.10%
  • Free internet banking registration
  • Free multi-purpose card offering POS, ATM and other facilities
  • Free standing instructions
  • SMS alerts for all account related transactions
  • Free cheque book
  • Fund transfer/cheque/demand draft can be made only to school or college for tuition or hostel fees
  • Personal accidental insurance cover of INR 1 lakh for free
PNB Vidyarthi Savings Fund Account Scheme Student pursuing studies at recognized educational institutions. The account will remain in student account category till 21st year of the account holder Zero 3.50-4.00
  • Demand drafts for all types of fees/examination fees come free of cost
  • Free internet banking services
  • Free intersol services for cash deposit/withdrawal
  • 2 cheque books with 20 leaves each to be issued a year for free
  • No charges on ATM/Debit Card usage
  • No incidental & ledger folio charges
OBC SB Vidyarthi Parents of students with a satisfactory 6 month record of savings account with the bank

or

Parents of students having opened a KYC-compliant savings account with the bank
Zero 7.25-7.75%
  • ATM cum Visa International debit card, titled as Cashmate, to be offered for use at online and offline stores, apart from normal cash withdrawal and other ATM services
  • No annual charges on ATM/Debit Card
  • An overdraft of up to INR 1,500 at any time to meet emergencies, expenses on books, stationary, etc.
Federal Bank Yuvamitra Account Students pursuing courses Zero 3.50-6.51%
  • A cheque book with 20 leaves a year to be issued
  • Visa International Shop n Save Debit Card, Master Card Classic to be offered
  • Daily cash withdrawals of up to INR 30,000 with Master Card Classic and INR 20,000 with VIsa International Shop n Save Debit Card
  • Internet banking, mobile banking and e-alerts
Corp NewGen Account Those having completed 10 years of age and are pursuing regular courses are eligible to open this account INR 100 4.00%
  • Debit card
  • Internet & SMS banking
  • Cheque collection up to a maximum of 2 instruments per month
  • Buy DD’s or PO’s through the account, subject to a maximum of 5 instruments per month
  • E-mandate
  • E-purse
  • E-passbook
  • Apna-App
  • Missed call facility

Best Banks to Have Salary/Regular Savings Accounts

Now come to the working class of millennials that are likely to have a salary account wherein they can make most of the attractive services on offer. Self-employed, though, won’t be eligible for a salary account. For them, a regular savings account would be an option. While salary accounts do away with the requirement to maintain a balance, regular savings accounts can stipulate a specific balance to be maintained by a depositor on a monthly or quarterly basis. So, which are those banks where millennials like you should have a salary or regular savings account? Find that out in the table below.

Banks Eligibility Minimum Balance Required Interest Rate Services Offered
State Bank of India (SBI) Both salaried & self-employed INR 1,000 - INR 3,000 2.70%
  • Internet & mobile banking
  • Cheque book request both online and offline
  • ATM-cum debit card
  • Fund transfer via NEFT/RTGS/IMPS
  • E-statement
  • Personal accident and health insurance cover
  • Be awarded reward points on the transactions you make via SBI debit card. These points can be redeemed at select online and offline stores
Bank of Baroda Both salaried & self-employed INR 1000 2.75%
  • Internet & mobile banking
  • Cheque book request both online and offline
  • ATM-cum debit card
  • Fund transfer via NEFT/RTGS/IMPS
  • E-statement
ICICI Bank Both salaried & self-employed INR 5000 3.00% - 3.50%
  • Internet, mobile, SMS & phone banking services available
  • Monthly e-statements
  • Discount on annual locker rentals
  • 24x7 banking with more than 100 Touch Banking branches
  • Cash deposit & withdrawal facility
HDFC Bank Both salaried & self-employed INR 2,500 - INR 10,000 3.00% - 3.50%
  • Exclusive debit card offers
  • Internet banking, mobile banking, phone banking
  • Free passbook and e-statement facility
  • Enjoy ATM cash withdrawal limit of INR 50,000 daily and shopping limit of INR 2.75 lakh on your international debit card (Salary Accounts)
  • Safe deposit lockers
Axis Bank Both salaried & self-employed Zero balance 3.00% - 3.50%
  • Avail internet, mobile and phone banking services
  • Monthly e-statements
  • SMS alerts
  • Passbook
  • Daily cash withdrawal limit of INR 40,000 at ATMs and INR 1,00,000 for online & offline shopping
Kotak Mahindra Bank Both salaried & self-employed Zero balance - INR 50,000 3.50% - 4.00%
  • Digital account
  • Online shopping
  • Payment of utility bills online
  • Virtual debit card (811 account)
  • Fund transfer via NEFT, RTGS or IMPS
  • Cash deposit & withdrawal
  • Request for new cheque book
  • Monthly e-statement


Note – Salary accounts would come with a zero balance feature across the banks.

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