To promote competitive savings for minors as well as enable them to know the purchase power of monet by their parents and guardians, SBI has taken an extra-mile and introduced a new zero balance a/c by the name Pehla Kadam and Pehli Udaan savings account.
On its microblogging Twitter account, the state-run bank says, , "Introduce your children to modern-day banking, responsible spending and the power of savings with Pehla Kadam and Pehli Udaan Savings Accounts! Loaded with various features, these accounts prepare your little ones for a sound financial future".
"Pehla Kadam and Pehli Udaan, are complete bouquets of banking products, that will not only help children learn the importance of saving money but will also allow them to experiment with the 'buying power' of money," it added.
Pehla Kadam and Pehla Udaan are two distinct accounts while the former can be opened jointly with the parent or guardian for a minor child of any age. Pehla Udaan has to be opened by a minor child aged over 10 years who can sign uniformly.
Monthly average balance requirement: There is no requirement of minimum balance that is the account remains operational also with zero balance and there is no penalty levied against keeping this amount. However, there is an upper limit when it comes to maximum balance that can be maintained in the account of Rs. 10 lakh.
Transaction amount: On a per day basis such accounts come with maximum transaction limit of Rs. 5000 per day in case the accountholder has the internet banking facility while in case of mobile banking the limit is Rs. 2000 per day.
Account can be used for the purpose of making payments, opening term deposits as well as doing NEFT transaction or getting a draft.
ATM cum debit card: For both the a/c minor child will be given an ATM cum debit card with the above mentioned limit and child's photo will be embossed on it.
Auto sweep facility: The auto sweep service is available for both of the accounts with a minimum amount of Rs. 20,000 and then in multiples of Rs. 1000.
Interest rate on the account is as per the other available savings account at SBI