Zero Balance Minor Account
A zero balance minor account is a savings account for children under 18 that doesn't require a minimum balance. Operated by a parent or guardian, some banks also allow minors above 10 years to manage it independently.
Why is a Minor Savings Account Essential?
A minor savings account helps inculcate the habit of saving from an early age. It introduces children to basic financial concepts like deposits, withdrawals, and interest earnings. Moreover, it gives parents the opportunity to teach financial responsibility in a practical way. These accounts are also a safe place to save monetary gifts, allowances, and other funds a child might receive.
Features of a Minor Savings Account
- Zero balance requirement: No penalties for not maintaining a minimum balance.
- Parental control: Parents or guardians can monitor and control account activities.
- ATM/debit card: Issued in the child’s name (in most cases for children aged 10+).
- Interest earnings: Competitive interest rates offered by most banks.
- Limited transaction limits: Helps avoid overspending and encourages saving.
- Online access: View-only or limited transaction access through internet/mobile banking.
How to Open a Bank Account for a Minor with Zero Balance
1. Choose a Bank: Compare features offered by different banks like SBI, PNB, HDFC, etc.
2. Collect Documents:
a. Minor’s birth certificate or school ID card
b. Parent/guardian’s KYC documents (Aadhaar, PAN, etc.)
c. Passport-sized photographs
3. Visit Branch or Apply Online: Depending on the bank, you may be able to complete the process online or at a branch.
4. Submit Documents and Form: Fill out the account opening form and submit it along with the documents.
5. Account Activation: Once verified, the account will be activated, and facilities like debit card and passbook will be issued.
Conclusion
A zero-balance minor account is a practical financial tool to introduce children to banking. It fosters financial literacy and provides a secure place to manage money received through gifts or allowances. With features designed to suit young savers, these accounts also ensure parental oversight and easy access to funds.
FAQs on Zero Balance Minor Account
- Can a minor open a bank account without a guardian?
Minors aged 10 or above can usually open and operate accounts independently, depending on the bank's policy.
- What is the minimum age to open a minor account?
There is no minimum age; even newborns can have accounts operated by guardians.
- Do minor accounts earn interest?
Yes, most banks offer regular savings account interest rates on minor accounts.
- Is a debit card issued for minor accounts?
Yes, typically for minors aged 10 and above, with set withdrawal limits.
- What happens to the account when the minor turns 18?
The account needs to be converted into a regular adult savings account with updated KYC details.
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