Top-9 children savings accounts, check out the best offers

If you are a young parent and planning investment for your child, opening a savings bank account is a basic step. With a savings account kids can learn, monitor, and understand how their money grows with time. A kid’s savings account is like a bigger piggy bank, where the money will be safe and earn interest. Once the amount reaches a specified level, it can be used for making other investments.

There are many banks that offer savings account facility for kids.

Here are top-nine banks and what they offer:

SBI

SBI offers two accounts — PehlaKadam and PehliUdaan — specially designed for kids. The PehlaKadam savings account can be opened by any kid age below 18 years. This savings account is a joint account with the parent and the child, where the parent will be the secondary account holder and the kid will be the primary holder. Unlike a normal savings account, there are no minimum balance criteria in this account. Features such as mobile banking and issuance of cheque books are also available with both. Overdraft facility, ATM facility and other investment options are clubbed with these accounts.

HDFC Bank

Kids Advantage Account can be opened for any child up to 18 years of age. However, either parents or guardian needs to hold a savings account with HDFC Bank.

This savings account comes with the minimum balance criteria of Rs 5,000 that needs to be maintained. They also provide free education insurance cover of Rs 1 lakh in case of death of the parent or guardian to the child.

There is also a MoneyMaximizer facility, wherein once the balance in the kid’s savings account exceeds Rs 35,000, the excess of Rs 25,000 gets automatically transferred to a 1-year-1-day fixed deposit in the child’s name.

Facilities such as ATM, international debit card are also provided by the bank for children aged between 7 and 18 years in the child’s name. The child can withdraw up to Rs 2,500 at ATMs and spend Rs 10,000 at merchant locations per day, with the permission of the parent to the bank.

ICICI Bank

ICICI Bank offers two accounts — Young Stars Account and Young Stars & Smart Star Account, especially designed for kids. The Young Stars Account can be opened for any child under 18 years of age. However, a guardian needs to hold a savings account with ICICI Bank to avail this facility. The Young Stars & Smart Star Account can be opened for a child above the age of 10. The child can also operate the account all by themselves.

However, a minimum monthly average balance (MAB) of Rs 3,000 needs to be maintained in the Young Stars Savings Account. ATM and internet banking facility are there along with different basic investment options like RD, FD, SIP etc.

Kotak Mahindra Bank

This bank offers interest up to 4% per annum on the Kotak Junior account. Kotak Junior account has options for easy investments for a child’s future in the form of a recurring deposit and systematic investment plans (SIP). The account holder need not maintain a minimum balance in their child’s account, if they opt for a recurring deposit or SIP for a minimum duration of three years. Debit cards will be issued on the request of the guardian to children above the age of 10 years and they would have daily withdrawal limit of Rs 5,000 only.

Axis Bank

Parents can open this account with an opening balance of Rs 5,000. Here, parents and guardians are in full control of this account. Monthly statements are issued by the bank to them. They can also avail of the free service of email and SMS alerts every transaction.

Some special features of this account are that it comes with a personal accident insurance cover worth Rs 2,00,000 if the card is swiped once in six months. Parents can also obtain a purchase protection liability and a combined lost card liability at the bank’s branch at a moment’s notice to protect their child debit card from fraudulent or illegal use. These policies are worth around Rs 50,000.

IDBI Bank

It requires a minimum account average balance of only Rs 500. No penalty charge will be levied if you are not able to maintain it every month. The bank has, however, set a daily withdrawal limit of Rs 2,000 on its ATM withdrawal rules with a debit card.

Free monthly email statements, free passbook, and personalised cheque book are also offered by IDBI Bank Power Kids account. Your child can get education loan at lower interest rates if your child decides to study in high school or college in India or abroad.

Citibank

The child should be above 15 years and below 18 years of age and the account must have a minimum of 2 holders in which the first holder is the child and the second holder is a parent or guardian.

To open the Citibank Junior Account the parent or guardian should have an existing account with Citibank. Withdrawal of cash is free at all the Citibank ATMs. There is an option for setting withdrawal limit which helps in controlling expenses.

With the Citibank junior account, you can benefit from dual insurance for your child and yourself.

IndusInd Bank

You can open a minor account on the child’s name if he/she is above 12 years. If not, the account should be opened as an “Under Guardian” account, where the parent shall be operating the account, and it will be changed once the child’s age crosses 12.

An average monthly balance to be maintained is Rs 5,000. A debit card called unique Gold Debit Card will be issued in the name of child if he is above the age of 12. Unlimited free ATM transactions and special offers in online transactions are available.

PNB

This can be opened by any minor of any age. If the minor is below 10 years of age, it is important to have a parent/guardian to operate the account. Children between 10 to 18 years of age can open and operate their savings bank account independently.

To open this account, you do not have to maintain a minimum monthly balance. ATM facility is available with a daily limit of Rs 50,000. Online transfer of Rs 1 lakh is permitted every day.

Free chequebook facility with 50 cheque leaves per year and free Issuance of demand drafts for school fees facility are also there.