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Minor Bank Account: 5 Smart Things to Know


It is always better to start saving and investing in your kids name when the child is quite young. One can start with saving a small amount on regular basis. To make any investment, disciplined saving habits is very necessary.


If saving is difficult, one can start a separate account in the name of the minor and can start a recurring deposit. Which will help in saving money and the same can be used for future fee payment or making any further investment.

What are the advantages of a Kids Saving Account?

Minor Bank Account: 5 Smart Things to Know

Here are 5 smart things to know about a minor bank account

1) Banks are allowed to open minors' accounts such as fixed and savings deposit accounts with mothers as guardians. However, guardian are not allowed to be overdrawn and that these always remain in credit. So that they maintain the amount in the account and not use for unnecessary things.

2) Minors above the age of 10 can open and operate the bank account if they desire. While, banks have all the rights to keep an eye on risk management systems, fix limits in terms of age and amount.


3) One can enjoy the benefit of additional banking facilities like internet banking, debit card, cheque book facility etc. Check book will be issued to the guardian in the name of the minor.

4) On attaining majority, the minor should confirm the balance in the account and if the account is operated by the natural guardian.

5) Fresh specimen signature and other instructions will be obtained and kept on record for all operational purposes.

Such accounts can be opened to make your child understand the importance of money and control on spending habits.

Documents required while opening a Minor Bank account

For Minor

  • Date of Birth proof
  • Birth Registration certificate
  • Report card showing DOB
  • School ID card with Photo and DOB mentioned

For Guardian

  • Minor Declaration to be signed by the guardian
  • Guardian's photograph
  • Signature on Account Opening Form
  • If he is not a natural guardian, he should be appointed by a court of law


Any interest income earned from minor's account will be clubbed and taxed with guardian's income as per Income Tax Slab.

When is Minor's Income Clubbed with Parents?

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