Top Savings Bank Account Options for Your Child

Benefits of Opening a Children's Savings Account 

Establishing a children's savings account provides numerous advantages, including: 

1. Financial Education: It fosters financial discipline and imparts essential lessons on savings, spending, and fundamental financial principles to children at an early stage. 
2. Long-term Savings: It serves as a platform for long-term savings and investment, enabling the child's funds to accumulate over time. 
3. Safekeeping of Funds: It ensures the security of the child's money in a bank, reducing the risk of loss or theft compared to storing cash at home. 
4. Interest Accrual: It enables the child to earn interest on their savings, facilitating the growth of their funds over time. 

1. Emergency Preparedness: It establishes a foundation for creating an emergency fund, teaching the child the significance of setting aside money for unforeseen expenses. 
2. Financial Autonomy: Upon reaching the age of majority, the child gains control over the account, fostering financial independence and accountability. 
3. Transfer of Financial Skills: It assists parents or guardians in imparting valuable lessons on responsible money management, budgeting, and making informed financial decisions for their child. 
4. Potential for Special Benefits: Some children's savings accounts offer perks such as waived monthly fees, increased interest rates, or educational resources to further enrich the child's financial literacy. 

Let's explore some of the top savings accounts for children provided by various banks: 

Interest rates are updated as of 19 January 2024 and are subject to change without prior notice.  

Opening a savings account for your child is a significant step towards their financial education and future security. As parents, instilling the habit of saving early on can lay a strong foundation for your child's financial well-being. Here are seven top savings account options offered by various banks, each designed to help your child learn the importance of saving and managing money responsibly.  

1. Indus Young Saver Savings Account  

IndusInd Bank offers the Indus Young Saver Savings Account, which is tailored to help children manage and save money under parental guidance. Eligibility criteria include a minimum average monthly balance of Rs. 5,000.  

Features & Benefits:  

1. Unique Gold Debit Card issued in the child's name (above 12 years)  
2. Customisable debit card with fun images  
3. A chequebook with the child's name for financial education  

2. Axis Bank Future Stars Savings Account  

Axis Bank's Future Stars Savings Account empowers children with essential financial knowledge, emphasising the importance of saving and building a strong financial foundation.  

Features & Benefits:  

1. Visa Platinum Debit Card at a nominal fee  
2. Personal accident insurance cover of Rs. 2 lakh for your child  
3. Option to customise the card with your child's image  

3. HDFC Kid's Advantage Account  

HDFC Kid's Advantage Account offers various benefits and insurance options, catering to minors up to 18 years of age with a parent holding an HDFC savings account.  

Features & Benefits:  

1. Free education insurance cover of Rs. 1,00,000  
2. Automated transfer to a Fixed Deposit for excess balance  
3. My Passion Fund for flexible deposits starting from Rs. 1,000  

4. ICICI Bank – Young Stars & Smart Star Account  

ICICI Bank provides two types of accounts, Young Stars and Smart Star, enabling children to operate accounts according to their needs and age.  

Young Stars Account Features & Benefits:  

1. Free Young Stars Debit Card for purchases and withdrawals  
2. Money multiplier and standing instructions facility for parental guidance  

Smart Star Account Features & Benefits:  

1. Free personalised Debit Card with spending and withdrawal limit  
2. Free internet banking access and email statements  

5. IDBI Bank- Power Kids Account  

IDBI Bank's Power Kids Account is designed to cater to parents who start saving for their children from an early age, offering free chequebooks and ATM cards.  

Features & Benefits:  

1. No charge for not maintaining the Average Quarterly Balance  
2. Free ATM transactions at other bank ATMs in non-metro locations  
3. Exclusive designed Kids ATM Card with a withdrawal limit  

6. Kotak Mahindra, My Junior Account  

Kotak Mahindra Junior Bank Account provides an attractive interest rate per annum and offers bundled offerings to teach children the benefits of saving.  

Features & Benefits:  

1. Personalised junior Debit Card and rewards program  
2. Exclusive discounts and privileges for kids  
3. Investment options in Recurring Deposits or Systematic Investment Plans  

7. SBI PehliUdaan  

SBI PehliUdaan Savings Account is tailored for children aged 10 to 18 years, offering personalised chequebooks and mobile banking services.  

Features & Benefits:  

1. Personalised chequebook and Mobile Banking services  
2. Child's photo embossed ATM-cum-Debit Card with withdrawal or POS limit  

Documents Required 

The documentation needed to open a children's savings account can vary depending on the financial institution but typically includes: 

1. Child's Proof of Identity: This may entail presenting a birth certificate, passport, or Aadhar card to establish the child's identity. 
2. Parent or Guardian's Proof of Identity: Providing identification for the parent or guardian, which could include a driver's license, passport, or state ID card, is usually required. 
3. Proof of Address: Furnishing proof of address, such as a utility bill, bank statement, or lease agreement, serves to confirm the residential address of the parent or guardian. 
4. Child's Social Security Number: The child's Social Security number is often necessary for tax-related purposes and must be provided. 

In addition to these standard requirements, some banks may request supplementary documents like a completed application form and a signature card. 

Fees and Charges 

Typical fees and charges for a children's savings account include: 

1. Monthly Service Fee: Some banks impose a monthly service fee on children's savings accounts, irrespective of the account balance. 
2. Minimum Balance Stipulation: Numerous banks require a minimum balance for children's savings accounts. Falling below this threshold may result in additional charges. 
3. Transaction Charges: Certain banks levy fees for transactions like cash withdrawals and ATM usage. 
4. Debit Card Expenses: Using a debit card may incur charges in many instances. 
5. Overdraft Fees: When funds are withdrawn in excess of the available balance, overdraft fees may be applied. 

How to Open a Children's Savings Account 

To commence the process of opening a children's savings account, individuals can adhere to the following steps: 

1. Step 1: Visit the nearest bank branch to initiate the children's savings account opening. 
2. Step 2: Engage with a bank representative to acquire the application form for a children's savings account. 
3. Step 3: Complete the application form and furnish any requisite supporting documents, including those of the parent or guardian. 
4. Step 4: Upon document submission, a bank official will assess the provided information to proceed with the processing of the children's savings account. 
5. Step 5: Following the successful opening of the account, the account holder will receive all essential account credentials. 

Introduce your child to the world of savings by opening a Savings Account tailored to their needs. This initial step lays the groundwork for future savings and investments, instilling in them the value of money and financial services. Start early, and watch your child grow into a financially responsible individual.