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Junior Savings Accouont - Kotak Mahindra Bank

Kotak Mahindra Bank – Kids Account

Kotak Mahindra Overview

Kotak Mahindra Bank has always been the flag bearer of disruptive innovation in India in the sphere of banking.

Kotak Mahindra Bank, through its products, is slowly transforming the way Indians bank!

Kotak has always believed in understanding the needs of the customers and providing customized solutions (best suited to their problems) across all platforms.

For Kotak, every customer is equal and only deserves the best from the bank.

Which is why Kotak Bank offers its customers a wide variety of product offerings in savings account in addition to cash back and discount offers. One such product is Kotak Junior Account aimed to inculcate the habit of saving money!

Kotak Junior Account

Kotak Junior Account is specifically designed for children under the age of 18 years to cultivate the habit of banking regularly and to provide with a platform that helps children grow their savings to support their future. It gives a rate of return of up to 6% p.a. on the deposits. Apart from that, it offers specially curated offers and rewards for the young account holders.

Why Open a Kotak Junior Account?

Kids are highly impressionable in their formative years and develop habits very easily. Hence, imparting financial knowledge to your children from an early age and helping your kids develop the habit of regular banking will help them become responsible adults.

With Kotak Junior Account, take the first steps towards a brighter future for your kids.

How to Open a Kotak Junior Account?

Applying for a Kids Savings Account with any bank at involves three simple steps:

Step 1: Go on the “Kids Savings Account” Tab and compare banks before you decide on one. You can also click on the “More Info” button to make an informed decision.

Step 2: Once you’ve chosen Kotak Mahindra Bank as the bank of your choosing then click on the “Apply Now” button.

Step 3: You then get directed to Kotak Mahindra Bank’s relevant page to take further steps towards opening a Kotak Junior Account. 

Features of Kotak Junior Account

  • The customers get up to and 6% p.a. on Junior Account and Guardian’s Savings Account.
  • Junior accountholders also get a host of privileges and offers.
  • Rs. 5000 is the Average Monthly Balance to be maintained.
  •     A Personalized junior debit card is issued to kids above the age of 10 years
  • The daily withdrawal limit is set at Rs. 5000.

Kotak Junior Proposition

  • Kotak Junior Account helps parents create a reserve for their child’s future and also inculcate the virtue of regular saving.
  • You can sign up for Recurring Deposit and save for your child’s future with an interest rate of 8.25% p.a.
  • It always better to start investing early and what better way to do so than by investing in a Systematic Investment Plan. Choose the amount and duration and start building that reserve dedicated to your child’s future.
  • While the bank recommends the bundled offering, Junior account is also available in the regular savings account variants without the separate Guardian Account and investment options, namely Platina, Ace, Pro, Classic, Edge, and Nova.

Kotak Mahindra Bank has become one of the first Banks that comes into the minds of customers when they look to open a new account. Correctly understanding and targeting the consumer mindset has been instrumental in their success. The Kotak Bank Junior Account has been launched in order to inculcate a habit of savings as well as to bring in financial planning of the kids.

The kids bank account is offered by banks to educate and encourage the children about savings from an early age. These accounts are opened in the name of the kids, under the guardianship of parents or legal guardian who want to ensure that they allocate a certain sum of money for their kids on a regular basis. Kotak Mahindra Bank Junior Account is specifically designed for children under the age of 18 years. The five features of the Kotak Mahindra Bank Junior Account are:

  1. Zero Balance Savings Account

The presence of the account being a zero balance savings account to set up individual boundaries of balance and helps the guardian and the kid to plan more efficiently. This acts as a parental control because the parent will only deposit money that is required for the kid to better understand financial planning and become independent.

  1. Personalized Junior Debit Card

The Personalized Junior Debit Card is issued to children above the age of 10 years with a daily ATM withdrawal limit of Rs. 5000. The maintenance of the kids bank account with a debit card makes a child more responsible and inculcates the habit of withdrawing the correct amount as and when required.

  1. Higher bank interest rates

The Bank is able to provide upto 6% per annum for the Junior and the Guardian Account respectively

The interest rate for the kids bank account is:

  • 5% per annum interest on savings account balance up to Rs. 1 lakh
  • 6% per annum interest on balances over Rs.1 lakh and up to Rs.1 Crore.
  • 5.5% per annum interest on balance above Rs. 1 Crore.
  1. Discounts and Privileges

Junior accountholders also get a host of privileges and offers on dining, edutainment and shopping on kids’ brands.

In addition to the above features Kotak Mahindra Bank has also added the two ways of investing through Recurring Deposits and Systematic Investment Plans

1.Recurring Deposit

A Recurring Deposit (RD) allows you to park a pre-defined amount in a long term deposit every month. The minimum Investment in a Recurring Deposit can be Rs. 2,000 per month. The minimum investment for Semi-Urban & Rural Branches is Rs. 1000. The minimum tenure for a Recurring Deposit is 36 months. Kotak Bank provides an interest rate of 6.50%.

2. Systematic Investment Plan (SIP)

An investment requires you to invest in lump sum amounts rather than periodically. Mutual funds have brought in this investment vehicle to invest periodically to invest in small amounts. Like an EMI withdraws money from your account on a monthly basis, money is withdrawn from the Savings Account and credited to the Mutual Fund Company. The Mutual Fund Companies receive money from a group of people and invest in the Capital and the Money Markets. Seasoned financial planners tell you it is never too late to start investing. What they also tell you that it is better to start early. Warren Edward Buffett, the American investor, speaker and philanthropist started investing at the age of 11 and he still says he was a few years late to start investing.

Thus, we must make the kids of today better financial planners and use facilities like SIP to maximize the account holder’s savings.

Although the bank suggests a bundled kids bank account, the Kotak Junior Account is available in the regular Savings Account variants namely Platina, Ace, Pro, Classic and Edge Nova which comes without the separate Guardian Account and investment options of RD and SIP.

Documents Required For Opening A Kotak Kids Account

The following documents are required in order to complete the KYC purposes for opening a Kotak Junior Account:

1. Identity Proof

As identity proof, Kotak Mahindra Bank accepts the following documents:

  • PAN Card
  • Driving License
  • Passport
  • Voter ID
  • Aadhaar Card

2. Address Proof

As address proof, Kotak Mahindra Bank accepts the following documents:

  • Passport
  • Driving License
  • Voter’s ID
  • Aadhaar Card
  • Utility Bill
  • Bank Statement
  • Bank Account Passbook (updated upto the previous 3 months)

3. Signature Proof

As signature proof, Kotak Mahindra Bank accepts the following documents:

  • PAN Card
  • Driving License
  • Passport
  • Latest Passport Size Photographs (4 copies)

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