It is important to inculcate the habit of savings early on. In the modern age, parents can encourage their kids to operate savings account with a bank, thus introducing them to the banking system and teaching them to become financially independent.
India's largest bank, the State Bank of India (SBI) offers "Pehla Kadam" and "Pehli Udaan" savings account for minors, which comes with modern-day banking products that will help kids understand the 'buying power' of money.
These also have per-day spending limits to help children use money wisely.
Pehla Kadam SBI Savings Account for Minors
- Minor of any age can open this account jointly with the parent/guardian. It can be operated jointly with the parent/ guardian or singularly by the parent/ guardian
- Mobile banking is available on the savings account for bill payment and top-ups. The per-day transaction limit on the facility is Rs 2,000.
- ATM-cum-Debit Card with child's photo embossed will be provided with the account with withdrawal/POS limit of Rs 5,000. This card will be issued in the name of the minor and guardian.
- Internet banking facility is also available with enquiry rights and limited transactions like: Bill payment, Opening e-Term Deposit (e-TDR)/ e-Special Term Deposit (e-STDR)/ e-Recurring Deposit (e-RD), Inter-Bank funds transfer (NEFT only), and Issue Demand Draft. Per day transaction limit is Rs 5,000.
- Cheque-books are available where mobile no. Of the account holder is recorded. Specially designed personalised chequebook (with 10 cheque leaves) will be issued to the guardian in the name of minor under guardian.
- Overdraft against fixed deposits for parent/guardian is available subject to fulfilling other terms and conditions.
- Personal Accident Insurance Cover (offered by SBI General) for the Parent.
Pehli Udaan SBI Savings Account for Minors
- Minors above the age of 10 years and who can sign uniformly, can avail SBI's Pehli Udaan Savings Account.
- This account will be opened in the sole name of the minor and singularly operated.
- It comes with photo embossed ATM-cum-Debit having withdrawal/POS limit of Rs 5,000 in the name of the minor.
- Mobile banking is available with viewing rights and limited transaction right like bill payment, top ups, IMPS. The per-day transaction limit is Rs 2,000.
- Internet banking facility is also available with enquiry rights and limited transactions like - Bill payment, opening e-Term Deposit (e-TDR)/ e-Special Term Deposit (e-STDR)/ e-Recurring Deposit (e-RD), Inter-Bank funds transfer (NEFT only), and Issue Demand Draft. The per-day transaction limit on the facility is Rs 5,000.
- Cheque-books are available where mobile no. of the account holder is recorded. Specially designed personalised chequebook (with 10 cheque leaves) will be issued if the minor can sign uniformly.
- No overdraft facility is available on Pehli Udaan SBI Savings Account for minors.
- Monthly Average Balance (MAB) requirement not applicable.
- Maximum Balance Rs 10 lakh.
- Interest rate as applicable to Savings Bank account calculated on a daily balance
- Transferability of accounts to any SBI Branch without changing the account number.
- Nomination facility is available and recommended.
- Specially designed branded passbook issued free of charge.
- No inter-core charges for transfer transactions.
- Auto-sweep facility with a minimum threshold of Rs 20,000. Sweep in multiples of Rs 1,000 with a minimum of Rs 10,000.
- Smart Scholar (Market Linked) - Child Plan offered by SBI Life with inbuilt premium waiver benefit and loyalty additions to fulfil the child's dreams.
- An option of setting up of one standing instruction for a recurring deposit, free of charge.
Requirements to open account
- Date of birth Proof of the Minor + KYC of the Parent Aadhaar and PAN or Form 60.
- Where Aadhaar number has not been assigned to an applicant, the applicant shall furnish proof of application of enrolment for Aadhaar and in case PAN is not submitted, one certified copy of an Officially Valid Document (OVD) along with Form 60 is required.
- In case the applicant is not a resident or is a resident in the states of Jammu and Kashmir, Assam or Meghalaya and does not submit the PAN, he/she shall submit one certified copy of OVD containing details of his identity and address and one recent photograph.
How to open SBI Savings Account for Minor Online?
- Visit www.sbi.co.in or www.sbi.co.in/web/personal-banking/home
- Under "Personal Banking", click on "Accounts" tab and choose "Savings Account for Minors".
- Find the "Apply Now" blinking option and click on it.
- A pop-up on feature comparison between "Digital Savings Account" and "Insta Savings Account" will appear on the screen. Close the pop-up to proceed.
- The page should lead you to SBI YONO. Click on "Open a Digital Account" from options on the top tab.
- Click on "Apply Now" on the next page.
- Fill in required details to initiate account opening.
- Note that a single SBI branch visit is required to complete the procedure. You can also open the account offline at any SBI branch.