When it comes to saving money, you should start early. The habit of saving should be fostered at a young age so that your kids get the habit of saving and accumulating money in their life. You can encourage good saving habits in your kids, but one of the most popular ways is to open a bank account for kids.
In today’s world, diligent parents know that ‘Saving Money’ is a skill that must be fostered for their children at a young age. It will ensure their kids get financially disciplined and help them learn to amplify their money.
However, the primary thing a minor needs to save money is a bank account for their children. Unfortunately, not all savings account to allow them to grow their money as desired. That’s why getting the best saving account for their child is recommended.
In an efficient Savings Bank account, they can earn interest on their parked money and grow it year by year. Let us share India’s Top 8 Saving Accounts for Kids and Minors.
- 8 bank accounts for Kids
- 1. IDBI Bank- Power Kids Account
- 2. HDFC Kids Advantage Account
- 3. Indus Young Saver Savings Account
- 4. SBI Pehli Udaan
- 5. Axis Bank Future Stars Savings Account
- 6. ICICI Bank Young Stars
- 7. ICICI Bank Smart Star Account
- 8. Kotak Mahindra My Junior Account
- Benefits of Savings Account for a child
- 1. Gaining financial management skills-
- 2. Valuing the worth of money-
- 3. Earn interest-
- 4. Acquiring knowledge of compounding-
- 5. Building saving habits based on targets-
- 6. Acknowledge ‘delayed gratification-
Saving for your kids can be one of the best ways to set them on the right path to financial stability. Let’s find out some of the best savings accounts for kids, which provide various benefits and make managing money easy.
8 bank accounts for Kids
Opening a savings account for your kid is the best way to teach children about savings. It not only helps kids save money for the future but also helps them learn about managing money properly.
Some of the finest savings account for minors in India that offer several advantages to their accounts are-
1. IDBI Bank- Power Kids Account
With this bank account, your child will learn how modern internet banking works and can handle their funds independently when they grow up. This bank account doesn’t have any monthly fees and provides returns on investments. The account comes with reasonable interest rates.
- The Power Kids account must have a minimum deposit of Rs. 500 to be serviced.
- Kids can manage the account independently if they are at least 10 years old.
- There are no fees for not maintaining the monthly average balance.
- The account also provides a complementary checkbook, passbook, and a specially designed Children’s ATM card.
- About Rs. 2,000 may be withdrawn from this account each month.
- On-demand, free mailed statements are provided each month.
- Drafts and pay orders are available upon request.
- Free five ATM withdrawals at non-metro locales with other banks’ ATMs.
2. HDFC Kids Advantage Account
A savings account specifically created for young people under 18 is the HDFC Kids Advantage Account. Before creating a savings account for your child, you must have your savings account in HDFC bank. Children at least 10 years old may create self-operated minors accounts. Moreover, The account has some fantastic benefits.
- Get a complimentary Rs. 10,00,000 in education insurance coverage when a legal guardian or parent perishes in a car accident.
- The kid has the freedom to deposit funds into My Passion Fund anytime they become able to begin little deposits with a minimum of Rs. 1000.
- With your approval, a debit card will be provided in your kid’s name, having a minimum withdrawal limit of Rs. 2500.
- Free withdrawals from any ATM of another bank.
- You can add money to the children’s account every month. One year is the minimum duration, and the minimum amount is Rs. 1000.
- If you join up for HDFC’s “MoneyMaximizer” (sweep-out) feature, the sum above Rs. 25,000 will mechanically be deposited to a Fixed Deposit for a year in your kid’s name whenever the balance in the savings account attains 35,000.
3. Indus Young Saver Savings Account
A young savings account allows children under the age of 18 to save their money. IndusInd Bank understands your needs as a parent and comes with an Indus Young Saver Savings Account to help your child manage and save their money under your guidance. A child over 12 may open a bank account in their name; if not, the guardian may do it on their behalf.
- If a minor is over 12 years, a unique Gold Debit Card will be provided.
- Your kid’s debit card may even be personalized with a fun graphic to give it a more distinct feel.
- They also provide your kid with a checkbook, so they have a simple way to make payments offline.
4. SBI Pehli Udaan
SBI Pehli Udaan is another bank account for minors that allows kids above 10 years and below 18 years to have an account. When you open an account with SBI Pehli Udaan, you’re providing your child with access to the latest technology and tools needed to become financially savvy.
The account has various benefits, including automatic sweep, a checkbook, and online banking. These resources will assist kids in learning about the recent banking procedures and the various facets of personal finance.
- The primary balance criteria for savings accounts in metropolitan regions is fixed at 5,000, urban areas at 3,000, semi-urban areas at 2,000, and rural areas at 1,000.
- For savings accounts, features like customized checkbooks and online banking are accessible.
- It includes a child’s ATM/debit card with an imprinted picture. The child’s name will appear on the card when it is granted.
5. Axis Bank Future Stars Savings Account
The Future Stars Savings account is among the most popular accounts of Axis Bank. It is designed especially for children and has some attractive features that make it the best bank account for kids in India. If you have a child between the ages of 10 to 18, opting for a savings account from Axis bank is a great idea.
It offers a great range of products and services that your child may need. The Savings Account offers FD savings at 3.5% on fixed deposits for your child, surpassing many other banks’ interest rates on FDs by at least 1%.
- It provides a 2 Lakh personal accident coverage policy for your kid.
- When a child reaches the age of ten, you may choose the image you want to see of them displayed on the card.
- A small cost will be required to receive a Visa Platinum Debit Card.
6. ICICI Bank Young Stars
The ICICI Bank Young Stars Account is an exciting opportunity to provide your child with a safer way to save and manage their money. The accounts are open for children starting from newborns to 18 years.
- It also has features like the ability to set up standing orders and a money multiplier, which make it easier to transfer funds from the guardians’ accounts and deposit them into the kid’s accounts.
- The saving accounts Debit Card from ICICI allows your kid to make direct transactions at Point of Sale machines.
- You can select an Account with daily withdrawal limitations of Rs. 2,500.
7. ICICI Bank Smart Star Account
The ICICI Bank Smart Star Account is a great way to teach your children about thrift and responsibility. There is a 1000 minimum balance required for opening the account. At 10 years of age, your child can open a Smart Star Account with ICICI Bank.
- A personalized debit card is provided with a 5,000 Rs withdrawal limit.
- The saving account offers access to online banking, free email statements, and mobile recharging services.
- It also offers a customized checkbook that the kid may use.
8. Kotak Mahindra My Junior Account
Kotak Mahindra Junior Account is a unique savings product exclusively for children. It helps teach your child about the importance of saving with a low-interest rate and the option for contributions through recurring deposits. It offers 3.5% interest per annum.
The account can be opened by just filling up the required form, giving several benefits. The Junior Account includes a customised minors debit card. It also has a fun rewards program. This program gives a variety of perks. These include gift cards for movies, books, and other items. There are also discount coupons.
- Kids over 10 can only have debit cards if their guardians request them.
- The maximum withdrawal on the account’s debit card is Rs. 5,000.
- The Junior Account includes a customized minors debit card and a fun incentives system.
- The Juniors Account offers unique advantages and discounts for children, including Junior Foodie, Junior Day Out, Junior Shopper, Junior Learner, and Junior Angel.
Benefits of Savings Account for a child
You should make an effort to open a savings account for your kids as they grow up. It is an excellent way for you to save for their budding future. When you open an account for your kids, it becomes a part of your responsibility and long-term strategy. The benefits of opening a savings account for a child are immense.
1. Gaining financial management skills-
As a parent, your goal is to give your child the best possible start in life. One of the best ways to do that is by teaching them financial management skills early. By having them open a savings bank account, they will gain financial literacy and knowledge and learn how to manage money better during their lifetime.
2. Valuing the worth of money-
It’s easy to let your children know you care about them by giving them gifts or fulfilling their every demand, but it’s equally important to teach them the importance of earning their own money. When they see you deposit their allowance into their savings account and use it responsibly, they will understand the value of money, improving their future financial mindset.
3. Earn interest-
The other best thing about savings accounts for children is that they are designed to allow children to earn interest. By investing in a savings account for children, their money will grow with time. It is why we can say it is a lucrative investment for them as they grow up. They can make small deposits throughout the year and collect interest.
4. Acquiring knowledge of compounding-
Spending a lot of time working towards financial goals is essential, but often children don’t know about compounding to guide them. It is believed that compounding is an effective way to earn wealth. It helps improve one’s financial status and secure their financial future.
5. Building saving habits based on targets-
Setting up a savings account for your child is a good idea if you want them to save and access their money in the future. Saving money is an important lesson every child should know.
Learning how to save for each life goal can lay the foundation for a financially stable and secure future. They can learn to save for various goals. Whatever the financial goal is, it’s never too early to start saving.
6. Acknowledge ‘delayed gratification-
Acknowledging the crucial value of delayed gratification is a form of discipline that many kids don’t appreciate. However, when they learn that saving money can allow them to afford something more precious in the future, they will become more motivated to save.
The notion of delayed gratification is a cornerstone value in any parent’s guide to raising a kid with a good life. The concept teaches children that logic, patience, and foresight are essential – which extends to saving.
This article lists the best banks for kids’ accounts in India. In our article, we have strictly focused on various characteristics of the bank account that make these accounts stand out from the rest. The features are essential because they will help you choose a bank account for your children that meets your requirements and needs.