Best Savings Accounts for Minors
Last Updated : Sept. 16, 2024, 1:32 p.m.
Having a savings bank account is one of the primary ways people choose to save their hard-earned money. That’s why over 80% of our population has a savings bank account. Many parents like to save not only for themselves but also for their children using these accounts. But what if an individual wants to teach their child the importance of money management skills early on? For such purposes, you can open a savings account for minors who are below 18 years of age. Several banks offer savings accounts especially designed for minors.
Your child can earn interest on the money in their account while keeping the money safe. A savings account for minors ensures that you don’t have to wait until your child reaches the age of maturity (18 years) to open an account. This account is specifically made for minors and offers a wide range of benefits such as a debit card and cheque book. A child can learn the basic functions of a savings bank account at an early age, which will benefit them in the future. In this article, we will cover some of the best savings accounts for minors available now so that you can choose the most suitable one for your needs. Keep reading to learn more!
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How Does a Minor Savings Account Work?
Before knowing about the top savings accounts 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. Accounts for children under 10 years old must be co-managed with a parent or guardian, while older children can manage their accounts independently.
However, there is one thing that you need to remember: a minor savings account becomes operative as soon as the child becomes an adult i.e. 18 years old. Once the simple paperwork is completed, the account will get converted into a regular savings account and parents can no longer operate the account. Several top banks offer exclusive Savings Accounts for Minors, such as State Bank of India (SBI), HDFC Bank, ICICI Bank, Kotak Bank, Union Bank of India, IDFC First Bank, etc.
Top Savings Account Offered by Banks for Minors
Furthermore, we have listed some of the best savings accounts for minors along with their key features. Check it out to know more!
SBI Savings Account for Minors
State Bank of India (SBI) is India's leading public sector bank and offers a variety of financial products. SBI provides two special savings accounts for minors called ‘Pehla Kadam’ and ‘Pehli Udaan.’ ‘Pehla Kadam’ is for minors of any age, while ‘Pehli Udaan’ is for those aged 10 to 18 who can sign uniformly. Below are some key features of these savings accounts for minors. Take a look.
SBI Pehla Kadam is a savings account designed specifically for minors (children below 18 years old) offered by the State Bank of India (SBI). This approach is an excellent method to familiarize your child with savings and introduce them to fundamental banking principles.
Here are some key features of this best bank account for child:
- Joint Account: A parent or guardian can be a joint holder along with the minor.
- No Minimum Balance: There's no minimum balance requirement to maintain the account, making it accessible to anyone.
- Easy Account Opening: Opening an account is a hassle-free process and can be done at any SBI branch.
- Free Passbook: A child-friendly passbook is offered at no cost to help monitor deposits and withdrawals.
- Limited Digital Banking Access: Minors receive restricted access to online and mobile banking, enabling them to check their account details but with limited ability to make transactions (within set 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:
Feature | Description |
|---|---|
Account Type | Savings Account |
Eligibility | Minors (below 18) with parent/guardian as joint holder |
Minimum Balance | No minimum balance required |
Account Opening | The account can be opened at any SBI branch |
Services | Free passbook, limited internet & mobile banking access |
Benefits | Teaches saving habits, introduces basic banking concepts |
SBI Pehli Udaan is another savings account offered by the State Bank of India (SBI) specifically designed for minors above the age of 10. 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:
Feature | Pehli Udaan |
|---|---|
Account Type | Savings Account |
Eligibility | Minors above a certain age (typically 10+) |
Minimum Balance | No minimum balance required |
Account Opening | SBI branches |
Services | Free passbook, potential for Internet banking access |
Benefits | Promotes financial independence; encourages money management skills |
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
HDFC Bank is one of India's top private banks and offers a special Savings Account for Minors called the HDFC Bank Kids Advantage Account. This account helps children learn how to manage money. You can start it with just INR 1,000 a month. It includes benefits like an ATM-cum Debit Card and insurance. Children have limited access to funds until they turn 18. A parent or guardian needs to have an HDFC Savings Bank Account to open the best savings account for a child.
Below, we list some key features of the HDFC Bank Kids Advantage Account. Check them out.
Features | Details |
|---|---|
Minimum Opening Balance | INR 1,000 |
Minimum Average Balance | INR 5,000 |
Standing Instruction Facility | Mandatory (For a minimum value of INR 1,000 and minimum tenure of 1 year) |
Money Maximizer Facility | Free Facility (With this facility, if the balance in a Kids Advantage Account reaches INR 35,000 or more, the amount above INR 25,000 will be transferred to FD for 1 year and 1 day in the child’s name.) |
ATM Debit Card | Available free of cost with a daily withdrawal limit of INR 2,500 at ATMs and INR 10,000 at merchant establishments |
Cheque Book Facility | Available with free 25 cheque leaves per financial year |
Passbook Facility | Available for free of cost |
Free Education Insurance Cover | Amount of INR 1,00,000 in the event of Death of the Parent/Guardian |
ICICI Bank Savings Account for Minors
ICICI Bank, one of India's leading private banks, offers two types of savings accounts for minors that help children learn essential money-saving skills at an early age. With the ICICI Bank Young Stars Account, parents can open and manage a savings account to plan their child's financial future. This account comes with several exciting features. Take a look below:
Features | Details |
|---|---|
Minimum Monthly Average Balance | INR 2,500 |
Eligibility | Available for children above 18 years. Parents/Guardians can open and operate the account. |
Additional Features | - Complimentary Titanium Debit Card - 25 complimentary cheque leaves per year - Digital banking enabled |
The other best savings account for child includes the Smart Stars Savings account. It empowers young account holders to manage their finances under the guidance of a guardian. Some key features include:
Features | Details |
|---|---|
Maximum Debit Transaction Limit | INR 2 lakh in a Financial year with Guardian Consent INR 50,000 in a Financial year without Guardian Consent |
Debit Card Daily Withdrawal Limit | INR 2,500 and INR 5,000 for Shopping and Cash Withdrawals |
Eligibility | Minors above the age of 10 can open and operate it independently. |
Additional Features | - Free Passbook facility - Free Cheque Book facility - Free International Debit Card - Free Monthly Email statement |
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 accounts 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.
Features | Details |
|---|---|
Minimum Balance Requirement | Not Required |
Maximum Credit Balance | INR 1 lakh |
Debit Card | Theme-based RuPay Baroda Champ Debit Card to children above 10 years of age |
Eligibility Age | 0 to 18 years |
Auto/Reverse Sweep Facility | Auto transfer of any amount exceeding INR 10,000 to short deposit with a minimum of INR 5,000 for 180 days |
Additional Features | - Internet & mobile banking facility for children above 10 years of age - Free passbook facility - Free cheque book with up to 30 leaves in a year |
Axis Bank Future Stars Savings Account
Axis Bank, one of India's top private banks, offers an exclusive banking product for children with its Future Stars Savings Account. This Savings Account for Minors from Axis Bank provides your children with a strong financial head start and helps them understand the importance of handling money responsibly. This account includes special features that make it one of the best in the market. For example, if your child is above 10 years of age, they can receive a Debit Card featuring their favorite image when they have an Axis Bank Future Savings account.
In the below table, you can see some of the important details and key features related to the Axis Bank Future Stars Savings Account.
Feature | Details |
|---|---|
Minimum Opening Balance | INR 1,000 (Rural locations) INR 2,500 (Other locations) |
Average Monthly Balance (AMB) | INR 2,500 (in metro cities) (No AMB is required if you have a Fixed Deposit of INR 25,000 for 6 months or a Recurring Deposit of INR 2,000 for a year) |
Interest Rate | 3 to 3.5% |
Debit Card Facility | Axis Bank VISA Platinum Card with an issuance fee of INR 200 and an annual fee of INR 200 in metro and urban locations |
Additional Benefits | - Personal Accidental Insurance Cover up to INR 2 lakh (if the card is swiped once every 6 months) - Free Cheque Book facility - Free SMS Alerts - Free Internet Banking Facility |
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.
Features | Details |
|---|---|
Minimum Opening Balance | Zero |
Average Quarterly Balance (AQB) | Zero |
NEFT Charges | Free up to INR 10,000 per day |
ATM/Debit Card Facility | Available (Withdrawal limit of INR 50,000 per day) |
Internet Banking Facility | Available (only-view facility) |
Mobile Banking Facility | Available (only-view facility) |
Additional Facility | - Free Cheque Book facility with 50 cheque leaves per year - Free Issuance of Demand Drafts for School and College Fees - No charges for not maintaining AQB in the Savings Account |
Overdraft Facility | Not Allowed |
Nomination Facility | Available |
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. Not only this, this savings account for minors is an excellent way to get several privileges across Dining, Entertainment, and Shopping on famous Kids brands like Firstcry, TINKLE, Freshmenu, etc.
You can also get up to 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!
Features | Details |
|---|---|
Minimum Opening Balance | Customized |
Average Zero Balance | Zero |
Debit Card Facility | Available with personalization |
Exclusive Privileges | Facilities like Junior Foodie, Junior Day Out, Junior Shopper, Junior Learner, Junior Angel |
Nomination Facility | Available |
Eligibility | Age must be below 18 years and the child must be a resident Indian. |
Required Documents | Identity Proof, Address Proof, Signature Proof, Minor Proof (Birth Certificate or Aadhaar Card), Latest Passport-size photos |
IDBI Power Kids Savings Account
IDBI Bank recognizes that parents increasingly begin saving for their children's future from the moment they are born. In response to this trend, IDBI has introduced the Power Kids Account, designed to support the financial goals for the next generation from day one.
This specialized account not only helps in setting aside funds for the child's future but also inculcates a habit of savings from an early age. Take a look at its key features below:
Features | Details |
|---|---|
Monthly Average Balance | INR 500 |
Initial Deposit | Zero |
PoS Withdrawal Limit | INR 2,000 per day |
Insurance Cover | An insurance cover of INR 8,000 available against counterfeit and lost cards |
Additional Features | Free passbook Free personalized cheque book Free monthly account statement Specially designed IDBI ATM card |
So, these are some of the top savings accounts 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.
Frequently Asked Questions (FAQs)
