One of the best and safe ways to accumulate savings for your kids future is by teaching them money management in the early years.
One can do so by introducing them to kids savings account. They can monitor, learn and understand how their money grows with time and with less risk.
Having kids savings account is like having a bigger piggy bank, where the money will be safe and can earn interest on the same.
Once the amount reaches specified limit, it can be used for making other investments.
There are plenty of banks which offer savings account for kids, with various options.
Also read: Minor Bank Account: 5 Smart Things to Know
Let us have a look at some of the best kids savings account offered by banks.
SBI- PehlaKadam PehliUdaan
State Bank of India has two accounts specially designed for kids called PehlaKadam and PehliUdaan.
Click here to know complete details
HDFC Bank - Kids Savings account
Individuals who are having an account with HDFC bank can open kids advantage account. Kid's Advantage Account can be opened for your child as long as your child is a minor (up to 18 years of age) and you have a Savings Account with HDFC Bank.
There is a mandatory option of giving standing instruction to transfer any amount from your account to your Kid's Advantage account every month.
The minimum value should be Rs 1,000 and minimum tenure of 1 year. The minimum balance which needs to be maintained is Rs 5000.
Also read: What is Quarterly Average Balance?
The main feature is it provides free education insurance cover of Rs 1,00,000/- in the event of death of the parent/ guardian through vehicular accident by road, rail or air to safeguard the future of the child.
Bank provides the facility of an ATM/International Debit Card which will be issued for children between 7-18 years of age in your child's name with your permission.
Your child can withdraw Rs. 2,500 at ATMs and spend Rs. 10,000 at merchant locations per day.
Once the balance in the Kid's Advantage Account reaches/exceeds Rs 35,000, the amount in excess of Rs 25,000 will automatically be transferred to a Fixed Deposit for 1 year and 1 day, in your child's name.
Kotak Bank - My Junior Account
Kotak bank is the only bank which offers 6 per cent per annum on the Kotak Junior account. a There is also an option of 10 year Recurring Deposit and linked Systematic Investment Plans intended to provide long-term savings for your child.
It also comes with a first of its kind Junior ID card for children and exciting rewards programme which brings a host of benefits like book vouchers, movie tickets and discount vouchers.
While, debit cards will be issued on the request of the guardian to children above the age of 10 years and it will have a withdrawal limit of Rs 5,000 only.
ICICI Bank - Young Stars Account
ICICI Bank Young Stars Account can be opened for kids with the age of 1day - 18years. It is essential for the parent/guardian to also hold an account with ICICI Bank.
In the event of the parent/ guardian not holding an ICICI Bank savings account, both the accounts (parent's saving account and the young star's account) can be simultaneously opened.
Smart Star Account
With Smart Star Account, minors above the age of 10 can open and operate the account all by themselves.
This will inculcate the habit of savings and a responsibility to spend wisely. The minimum Monthly Average Balance (MAB) to be maintained in Young Stars Savings Account is Rs 2,500.
Axis Bank - Future Stars Savings Account
The Future Stars Savings account special account which is dedicated only for children below the age of 18. The minimum Monthly Balance requirement of Rs 2,500 in metros.
Individuals also have the option to automate money transfer facility for transfer of funds from their account to child's account on a monthly/weekly basis.
Also, there is no Average Monthly Balance requirement if a Fixed Deposit (for 6 months) of Rs.25,000 or a Recurring Deposit of Rs.2,000 (for a year) is maintained.
IDBI Bank- Power Kids Account
IDBI Bank Power Kids Account comes with the minimum balance of Rs 500 and no charges for non-maintenance of AQB.
The bank offers withdrawal limits up to Rs 2,000 at ATM or point of sale (POS).
There are other banks like United Bank of India, Karur Vysya Bank, Citi Bank and HSBC bank.