It's crucial to teach kids about the value of money in today's tap-and-go culture when money is rarely physically transferred and is instead spent more quickly. Involving your children in your financial decisions will provide them with a foundational understanding of financial transactions in the real world as they grow up in an increasingly digital market.
Additionally, it's never too early to begin saving, and opening a savings account gives your kids the best opportunity to learn about the value of money as well as responsible money management. This children’s day, you may inculcate the habit of savings in your children by opening a savings account for them. A number of banks offer savings accounts especially curated for kids below the age of 18. We present a comprehensive list of these accounts below.
Indus Young Saver Savings Account
If the minor is at least 12 years old, he or she may create an Indus young saver savings account in the child's name. If this is not the case, the account should be set up as an "Under Guardian" account, where the guardian will be in charge of managing the account.
The account must have an average balance of Rs. 5,000 every month. A minor who has a linked account with a parent privilege account or a recurring deposit of Rs. 2,500 per month is also entitled to a monthly balance waiver.
ICICI Bank Young Stars Account
Minors can create an ICICI Bank Young Stars account to run the account according to their needs from a young age. It provides a free Young Stars debit Card that your KID may use to make direct purchases at POS (Point of Sale) terminals and withdraw money from ATMs.
You can select a Young Stars account with daily cash withdrawal restrictions of Rs. 2,500 or Rs. 5,000 for shopping. Additionally, it has features like a money multiplier and instructions that make it easier to deduct funds from parents' accounts and deposit them into children's accounts.
Kotak Mahindra Junior Bank Account
The Kotak Mahindra Junior Bank Account offers 3.50 percent interest annually and is primarily intended to help your youngster comprehend the advantages of saving money.
It gives a customized junior debit card as well as a fun rewards program that offers a variety of perks including book vouchers, movie tickets, and discount coupons. Debit cards will only be issued to minors above the age of 10 at the parent's permission with a maximum withdrawal limit of Rs. 5,000.
Axis Bank Future Stars Savings Account
For children under the age of 18, axis bank offers the future stars savings account. For kids under the age of 10, the guardian can manage this savings bank account. Depending on the branch, a monthly balance of between Rs. 1,000 and Rs. 2,500 is required. However, whether you keep a 25,000 rupee fixed deposit for six months or a 2,000 rupee recurring deposit for a year, there is no such cap.
HDFC Kid's Advantage Account
As long as you have an HDFC Bank savings account and your kid is a minor (up to the age of 18), you are eligible to create a Kid's Advantage account. A savings account for your child cannot be opened unless you already have one with HDFC. Over-10-year-old children are eligible to open self-operated minor accounts and receive an ATM/debit card.
If you sign up for the bank's "MoneyMaximizer" (sweep-out) facility, the sum above Rs. 25,000 will automatically be transferred to a fixed deposit for 1 year and 1 day in your child's name when the balance in the Kid's Advantage account reaches/exceeds 35,000.
ICICI Smart Star Account
Any youngster who is older than 10 years old can open and manage an ICICI Smart Star account on their own. The free personalised debit card from ICICI Smart Star account has a Rs. 5,000 spending and withdrawal cap. It also includes a customized cheque book that the youngster may use. It includes features like free prepaid mobile recharge service, free email statements, and free access to mobile banking.
SBI Pehli Udaan Savings Account
SBI provides two financial products, Pehla Kadam and Pehli Udaan, to help youngsters grasp the value of money management. Pehli Udaan is for those who are between the ages of 10 and 18 and can sign legibly, whereas Pehla Kadam is only intended for minors of any age.
For Pehli Udaan savings accounts, features like personalised checkbooks and mobile banking are available. Additionally, a child's picture embossed ATM/debit card with a 5,000 rupee withdrawal/POS limit is included.
IDBI Power Kids Account
The Power Kids account must have a minimum amount of Rs. 500, however there are no penalties for not maintaining the average quarterly level. Additionally, IDBI Bank offers a complimentary chequebook, passbook, and specially designed Kids ATM card with this account, and permits withdrawals up to Rs. 2,000 per month. The child can conduct the first five transactions with the ATM card at other Bank ATMs in non-metro areas for free.
Developing solid saving habits early on will help position children for success since saving is a skill that lasts a lifetime. Following thorough research, you may select an account depending on your requirements and desires.