Kids Savings Account is an early start to ensuring a brighter and financially stable future for the young tots. Since parents always have the best interest in their hearts, they should not only open a Kids Savings Account but should also encourage their kids to learn about banking from an early age. This will help inculcate the habit of saving money in your children from an early stage of their life.
A savings account is the first step toward becoming financially conscious.
This financial product is the easiest way to save your money and earn a steady interest in it. This outcome inculcates the habit of regular saving in an individual. Apart from that, your money is in safe hands when you deposit it in the savings account. Many banks also provide added benefits to the customers availing their Savings Account.
Banks deal with customers having varied financial needs and, hence, have developed a wide range of products under savings account for supporting the needs of these customers.
What is a Kids Savings Account?
Kids savings account is specifically designed for children up to the age of 18 years to inculcate the habit of regular banking and to provide with a platform to maintain a reserve of savings deposit to support the future of these youngsters. Banks usually provide with special features to support the present and future needs of the kids.
Why Open a Kids Savings Account?
Kids are highly impressionable in their formative years. Their minds are like blocks of clay that can be easily molded. This is the time when you should inculcate the virtue of managing their money on their own.
As parents, it’s never too early to impart financial knowledge to your kids. Taking the first step towards financial inclusion of your kids will help them ensure a financially stable future. Invest in their future by opening a kids savings account today.
Banks offering Kids Savings Account in India
Various banks in India have kids savings account for minors. Here are some of the best savings account for kids in India.
Kotak Junior Account
This savings account for kids is specifically designed to inculcate the habit of saving as well as to prepare them for the future. Kotak Mahindra Bank also gives junior customers a host of benefits across edutainment, dining, shopping etc.
Features of Kotak Junior Account are as follows:
Get up to 6% p.a. on junior and Guardian’s Savings Account.
Junior account holders also get exclusive privileges and discounts.
Average monthly balance (AMB) of Rs.5,000 is to be maintained to avoid paying charges.
Personalized junior debit card which is issued to kids above the age of 10 years and the daily withdrawal limit is set at Rs. 5000.
Young Stars & Smart Star Account
ICICI Bank has the Young Stars Account and Smart Star Account as their offering to their junior customers.
Young Star Account:
The parent can open and operate the account to plan their child’s need, right from a young age.
Features of Young Stars Account are as follows:
The customers will be provided with a free Young Stars Debit Card.
You can choose from debit cards that have a limit of Rs.2500 or Rs. 5000 for daily cash withdrawals and shopping.
Standing Instructions Facility to debit money from parents account to the young stars account.
Customers are provided with Money Multiplier Facility as well.
Smart Star Account
This account can be opened and operated by a minor above the age of 10 years. This product helps the kids inculcate the habit of managing their finances.
Features of the Smart Star Account are as follows:
Free personalized debit card with a daily spend and withdrawal limit of Rs. 5000
The child can issue a cheque with a personalized checkbook.
The account holder gets access to various services for free like:
o Internet Banking Access
o Mobile Banking Access
o Email Statement
Future Star Savings Account
Axis Bank’s Kids Savings Account Future Star Savings Account is a savings account for kids below 18 years of age.
The features of Future Star Savings Account are as follows:
Lower minimum deposits of around Rs.2500.
Free monthly e-statements, SMS alerts, Internet banking facilities
Visa Classic Debit card facility
Personal accident insurance cover of around 2 Lakhs INR facility
Combined Purchase protection Liability & Lost Card Liability of around Rs.50,000 against fraudulent use of the debit card.
Citibank Junior Account
Citibank believes in teaching the kids the basics of banking at an early. Through this product, the kids under the age of 18 years can open a bank account. Citibank Junior Account should have two holders (A minor and his/her guardian.)
The guardian should have an existing account with Citibank to avail this option.
The features of Citibank Junior Account are as follows:
Free withdrawal of cash at all Citibank ATMs
You can set a limit on your child’s debit card to control expenses.
The guardian can issue standing instructions from your account to your child’s account through our online banking platform.
Citibank gives its customers free access to online banking and free online transfers to any bank account in India.
24×7 CitiPhone Banking Available.
Savings at select restaurants/merchants on your Citibank Debit Card in India.
Eligibility criteria for opening a Kids Savings Account
To be Eligible for a kid account in any bank, the account holder needs to be a minor (Under the age of 18 years).
Document requirement for opening a Kids Savings Account
At the time of opening a Savings Account, the bank requires certain documents for KYC purposes.
Bank Account Passbook (Updated and no more than 3 months old)