Minors, that is individuals less than 18 years of age are provided with ‘minor account’ options by banks that help kids cultivate the habit of savings at an early age. Many banks these days have come up with special features on kid’s savings account like education insurance, fixed deposit facilities, and also provide higher interest rates.
In order to teach your child how to manage money and also to help them develop a corpus for their future, you should consider opening a bank account for your kids.
The parent or legal guardian of the child can open a savings account under the name of the minor, even a baby.
Some common requirements for that would be:
- Savings account in the same bank: Most banks require the parent/guardian to hold a savings account in the same bank to open one for their child.
- ID proof: a government ID proof of the child, as well as the guardian, is required to be submitted to the bank, including Aadhaar card of the kid.
- Signature specimens of the child (if over 10 years of age) as well as the guardian.
The features of the kid savings account vary from bank to bank. You will have to look at the requirements of:
- Minimum balance requirement (Ex- HDFC requires a minimum balance requirement of Rs 5,000 for minors)
- Interest rate: Kid savings accounts usually fetch higher interest rates. Some banks allow the joint account facility that can fetch the same rate on the guardian’s account if the minimum balance requirement is maintained.
- Debit card facilities (Ex- Kotak Mahindra provides debit cards to a junior savings account with the maximum withdrawal limit of Rs 5,000 per day)……..Read More>>
Source by goodreturns