Here are some of the more popular Savings Accounts for kids offered by banks in India:
Kids Advantage Account by HDFC Bank
This account is specially designed for kids wherein the ATM/International Debit Card is issued to children between 7-18 years of age, in the child’s name, with the permission of their parents/guardian. Your child can withdraw Rs. 2,500 through an ATM and the daily shopping limit on this account is set at Rs. 10,000.
With this account, your child can enjoy free cash withdrawals from other ATMs and also get a free personalised cheque book. This account also comes with the advantage of free Education Insurance cover of Rs.1,00,000. As a parent or guardian, you can monitor your child’s account through the passbook facility or net banking. Additionally, you can get free e-mail alerts on account transactions.
If you’d like to step up from this account and think about investing, this account lets you do it. By transferring Rs. 1,000 every month for a year, you can build an investment pool and also open a Fixed Deposit account via this account. Once the balance in this account reaches or exceeds Rs. 35,000, the amount in excess of Rs. 25,000 will automatically be transferred to a Fixed Deposit Account for 1 year through the “Money Maximiser” sweep-out facility.
To open this account your child should be a minor or under the age of 18 and you as a parent/guardian should have a Savings Account with HDFC.
Young Stars & Smart Star Account by ICICI Bank
This Savings Account by ICICI Bank is split into two types. While the Young Stars account can be opened for minors who are below the age of 18, the Smart Star Savings Account is designed for children between the ages of 10 and 18. This facility is available at all ICICI bank branches in all cities across the country.
You can avail a Debit Card with this account free of cost. The daily withdrawal limit or spending limit on the Debit Card is set at Rs. 5,000. With this account, you can also keep track of your transactions and receive a monthly e-statement. Alternatively, can also collect it from your bank’s branch.
However, the minimum monthly average balance (MAB) to be maintained is Rs. 2,500. You will be charged 5% of the shortfall in required MAB if you fail to do so.
My Junior Account by Kotak Mahindra Bank
This Savings Account by Kotak Mahindra Bank is designed to inculcate the habit of savings in children from an early age. It comes with personalised Junior ID card for children that offers a host of privileges across dining, entertainment and shopping on kids’ brands.
The Junior Account also offers 6% p.a. interest on a savings balance over Rs. 1 lakh and up to Rs. 1 crore. You can earn 5% p.a. interest on account balance up to Rs. 1 lakh. These rates are subject to change from time to time, so check the latest rates on the bank’s website.
Kids above the age of 10 can request for Debit Cards with a withdrawal limit of Rs. 5,000.
Future Stars Savings Account by Axis Bank
The Axis Bank Future Star Savings Account is designed for children below 18 years of age. This account can be operated by a guardian for children below 10 years of age.
You can open this account for your child with an opening deposit of Rs. 2,500. Tracking of this account can be done through monthly e-statements. You can also avail a free cheque book every quarter in your name or your ward’s name.
The interest on an account balance of Rs. 50 lakhs and above is
