To inculcate good money habits, children should be taught the importance of money from an early age onwards. One way to do is to make a separate savings account for kids.
Canara Champ Deposit Scheme is one such savings bank account that is exclusively meant for children. To open this account, the child should be less than 12 years old.
Read: How opening a Savings Account will teach your child financial discipline
As it is a kid’s savings account, it is zero balance account. So, there is no penalty for maintaining any average minimum balance.
Opening this account is extremely pocket friendly. The account can be opened with a nominal amount of Rs.100.
The account does not have the provision to create joint account.
Cheque book are also not available with this kid’s saving account.
Nomination facility is available.
The customer can view the existing balance through net banking.
After the child attains 18 years of age, the bank account will be converted into a regular savings account.
Customers can also opt for educational loan. To be eligible for loan, a minimum credits in a half year aggregating to Rs. 500 in rural and semi urban branches and Rs.1000 for urban and metro branches.
Tax on interest is not applicable for customers of Canara Champ Deposit Scheme.
Account holders have facility to transfer money above Rs.15,000 into Kamadhenu Deposit. It is reinvest plan that helps you to multiply your savings. It is available for a minimum of 5 months and maximum of 120 months.
Here are the documents that you will need to open a Canara Champ Deposit Scheme:
Bank’s application form
Copy of PAN Card / Form 60 or 61 (if customer does not have PAN Card)
Two copies of passport photos
Identification proof as per the KYC requirements
Address proof as per the KYC requirements
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