Youngsters can open a bank account for themselves when they start earning. But for kids, parents often want to open accounts for their children. This helps them learn about saving for the future and managing their money.
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.
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.
In this SBI PehlaKadam saving account, the eligibility criteria is as follows:
The Kid can be of any age below 18 years.
PehlaKadam savings account is a joint account where the kid will be the primary account holder, and the Parent/Guardian will be the secondary.
There is no minimum balance criteria in this account.
Features such as cheque book and Mobile Banking are available for PehlaKadam Savings Account.
In this SBI PehliUdaan saving account, the eligibility criteria is as follows:
The age of the kid should be above 15 and below 18 years.
PehliUdaan savings is a singly operating account, unlike PehlaKadam.
There is no Minimum Balance criteria, and all the features are available for PehlaUdaan Savings Account which are available for PehlaKadam Savings Account.
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.
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 & Smart Star Account
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.
Karur Vyasya Bank Jumbo Kids Savings Account
Nowadays parents want to ensure that their kids get the best of everything. The best way to teach your kid how to deal with finances is to involve them in planning for their future.
Karur Vyasya bank has introduced Jumbo kids saving account for children. This account provides more benefits and for children to understand not only about the value of money but also handle it responsibly. The account is applicable only for children up to the age of 12 years and no minimum balance is required to maintain this account. The bank will provide free Visa-backed ATM card, and it does not contain any charge for issuing ATM. To attract the kids, they will provide Jumbo doll while opening this account.
CitiBank Junior Account
The eligibility criteria for Citibank Junior Account is
The child should be above 15 years and below 18 years of age and Account must have a minimum of 2 holders in which the first holder being the child and the second holder being the parent or guardian.
To open the Citibank junior account the parent or guardian should have an existing account with Citibank.
Few Best features and benefits of Citibank Junior account is:
The international debit card will be provided which can be used for doing payments internationally.
Withdrawal of cash is free at all the Citibank ATM.
There is an option for setting withdrawal limit which helps in controlling expenses.
IDBI Bank- Power Kids Account
Here is the list of the Benefits and features of IDBI Bank Power Kids Account
Minimum balance to be maintained for this account is Rs.500.
No charges for not keeping the Average Quarterly Balance.
Cheque book, PassBook, ATM will be provided for free for this account.
Withdrawal Limit up to Rs .2000 per month only.
Using the ATM provided the kid can do free first five transactions in ATMs other than IDBI Bank ATM.
If the kid is above ten years and below 18 years old, He/She can operate the account on their own.
HSBC Premier Junior Account
For opening an HSBC Premier Junior Account, you should be an HSBC Premier customer. You can open a Junior Savings Account or you can go for a Supplementary Credit Card. There is an option where you can HSBC Premier Platinum Debit Card for your child.
Few Best features and benefits of HSBC Premier Junior Account is
You can opt for a monthly statement which gives you a comprehensive view of the spendings did by your child. Also, you have an option where you will be getting text alerts to your mobile number whenever a transaction is done. Not only these there are many other services you can avail such as Global safety net, HSBC Premier overseas education benefits, etc.
There are other banks like United Bank of India which offers Kids Savings Account.
Indus Young Saver Savings Account
IndusInd Bank provides Indus Young Saver Savings Account and there many services and benefits that you can avail. The eligibility criteria for this account is:
You can open a minor account on the child's name if he is above 12 years. If not the account should be opened as an "Under Guardian" account, where the parent shall be operating the account, and it will be changed once the child's age crosses 12. An Average Monthly Balance to be maintained is Rs 5,000. A Debit card called unique Gold Debit Card will be issued in the name of child if he is above the age of 12. There is an option with debit card where you can add a personal touch to your child's Debit Card by customizing it with a fun image.
Benefits of Kids Savings Account
Many banks offer these advantages to the customers.
- Free Education Insurance cover of in the event of death of the parent/ guardian to safeguard the future of the child
- ATM/International Debit Card will be issued for children with parents permission.
- Free NetBanking facilities
- MobileBanking facilities check your kids account balance, pay utility bills or stop cheque payments all via SMS.
United Bank Children Saving Account
Now a minor can operate his or her bank account at the government owned United Bank of India. The main motive of this account is to encourage children to develop the habit of savings and also to make them get used to banking.
To open this minor saving account the minimum age should be 10 or above, and the nature of the account is savings accounts. The process to open these account is by filling the form as a savings account. A mark will be given as "United Children Savings A/c." shall be affixed at the top of the a/c opening form. Under this scheme initial minimum deposit and amount of minimum balance in the account are Rs. 50/- (Rupees fifty) only.
An account holder of United Children Savings Account will get specially designed colorful passbook. If the passbook is lost the bank will supply another passbook for free with usual formalities. The transfer chargers are also free from one bank to another bank. One cheque book of ten leaves will be given by the Bank free of cost.