SBI is the biggest bank in the country. The bank offers different products like savings accounts, loans etc. Customers can also open various categories of savings account such as women savings account, kids savings account and salary account etc. SBI Pehla Kadam and SBI Pehli Udaan are the two SBI savings bank account for minors.
Kids Savings account is one such type of savings account that is applicable for customers below 18 years of age. These bank accounts will help children to learn the importance of saving money and help them to understand the transactional value of money.
Both Pehla Kadam and Pehli Udaan account are loaded with features such as internet banking, mobile banking, cheque book, debit card and auto sweep facilities. These facilities will help kids to become familiar with the latest banking practices and also make them aware of the different aspects of personal finance.
As the name suggests, SBI Pehla Kadam account signifies the first step in the world of finance. Anyone above 18 years of age can open this account with the help of a parent or guardian. On the other hand, SBI Pehli Udaan can be opened by a minor above 10 years and can handle the account solely.
While both these accounts are meant for children below 18 years of age, Pehla Kadam bank account is a kid’s savings account that requires handholding while Pehli Udaan is a children’s savings account that can be operated without a parent or guardian.
Both these accounts have several common features and slightly differ from each other on a few aspects. Here are the features and benefits of these minor savings accounts.
There are similarities as well as dissimilarities among these two types of savings account.
Regular savings accounts have a minimum average balance that needs to be maintained on a monthly or quarterly basis. Most savings accounts for minors including the SBI Pehla Kadam and Pehli Udaan don’t have a minimum average balance which makes it zero balance accounts.
The maximum balance of these accounts is Rs.10 lakh. Customers may need to shift to regular savings account to keep a balance above Rs. 10 lakhs.
Customers can opt for the auto sweep facility where excess funds are shifted to a fixed deposit which helps customers to earn higher interest on their deposits. The minimum threshold for the auto sweep facility is Rs.20,000. This means that account holders with more than Rs.20,000 are eligible for the auto sweep facility. A minimum of Rs.10,000 and in multiples of Rs.1,000 is needed to form a new fixed deposit. Fixed deposits are created to take care of the excess funds lying in the savings account. This auto sweep facility gives the benefit of higher interest rate along with liquidity.
Recurring deposit (RD) lets customers park a specific amount in a recurring account. With regular deposits, one can save money to fulfill their financial goals. Customers of these SBI kids savings account can set up a standing instruction for recurring deposit without any charge.
Smart Scholar is a market-linked child plan offered by SBI Life which comes with inbuilt premium waiver benefit and loyalty additions to help parents to fulfil their child’s dreams.
Cheque books are issued to customers of both the accounts. The mobile number of the account holder is recorded and the cheque book is personalised with 10 cheque leaves. In case of a Pehla Kadam account holder, the cheque book will be issued to the Guardian in the name of minor under a guardian. Whereas in the case of Pehli Udaan, the cheque book will be issued to the child if he or she can sign uniformly.
Account-holders of these accounts can get their child’s photo embossed in the debit card. The daily withdrawal limit of this debit card is Rs. 5,000. It includes cash withdrawal and transactions at various point of sales (POS).
Just like the cheque book, the debit card of Pehla Kadam account holders is issued in the name of the minor and guardian, while for Pehli Udaan customers, it is issued in the mane of the minor.
Account-holders of Pehla Kadam and Pehli Udaan can view their account and have limited transactions right like bill payment, top-ups with a per-day transaction limit of Rs.2,000 through the mobile banking facility.
Internet banking is also available for limited transactions such as bill payment, opening term deposits (TD) and recurring deposits (RD) online, transfer funds through NEFT and issue demand draft.
Overdraft facilities allow customers to withdraw more money than they own. The overdraft facility is not available for Pehli Udaan customers. Parents and guardians of Pehla Kadam account can avail overdraft facility against fixed deposits after the other terms and conditions are fulfilled.
In case of accidents, Personal Accident Insurance provides financial compensation to the insured. SBI General offers the personal accident insurance cover to the parents of Pehla Kadam account holders. The facility is not available for parents of Pehli Udaan account.
|Parameters||Pehla Kadam||Pehli Udaan|
|Monthly Average Balance||Nil||Nil|
|Maximum Balance||Rs.10 lakhs||Rs.10 lakhs|
|Photo ATM-cum-Debit Card||Issued in the name of the minor and guardian.||Issued in the name of the minor.|
|Cheque book||Issued in the name of the minor and guardian.||Issued in the name of the minor.|
|Auto sweep facility||Minimum threshold of Rs. 20,000||Minimum threshold of Rs. 20,000|
|Mobile Banking and Internet Banking||Limited transactions and daily limit of Rs.5,000||Limited transactions and daily limit of Rs.5,000|
|Over Draft for Parents/Guardians||Overdraft against Fixed deposits for parent/guardian||No overdraft facility|
|Recurring Deposit||Set one Standing Instruction for Recurring Deposit without any charge||Set one Standing Instruction for Recurring Deposit without any charge|
|Personal Accident Insurance Cover||Offered to parents||Not applicable|
|Smart Scholar (Market Linked)||Child Plan with inbuilt premium waiver benefit and loyalty additions to fulfil the child’s dreams.||Child Plan with inbuilt premium waiver benefit and loyalty additions to fulfil the child’s dreams.|
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