Bank Account for Kids – Steps to Open Kids Savings Account, How to open bank account for Kids. Steps to open Bank Account. Nowadays the children have become very much intelligent and aware of each and every new trend in the market. They also need to be taught the value of the money. There is no age of the learning. It has been scientifically proved that the capturing power of children are far more than normal adult. You might have also noticed that the children are capturing the things very fast, it may be anything. SO if you teach them about the finance sector which is considered to be the difficult job for the parents but if they are successful in doing so, the future of the children would be very bright. Now check more details regarding “Bank Account for Kids – Steps to Open Kids Savings Account” from below….
Bank Account for Kids – Steps to Open Kids Savings Account
Criteria for deciding Ideal Savings Account for Kids
There are many options available in the market as the central bank as ordered notices for allowing the children (of more than 10 years) to operate there account severally or jointly. You need to select the best option for your kid which would rip you better future.
- First and the foremost point to be considered while deciding would be “No Minimum balance requirement”, as the children are small to handle the money, so they should be given the right to operate and maintain the account for as much amount as they want.
- As there is new technologies available in the market that the account can be operated online and the transactions can be operated through online mode only, the children should also be taught how the online processes works. So the bank which provides the online account operating facility should be taken into consideration.
- No Other charges should be levied by the banks for operating the account as the government as issued orders that there should be financial inclusion in the system to make it more transparent.
For the above all criteria, lets take the example of one bank providing such all facilities.
State Bank of India (SBI) is providing different services which is beneficial for the kids. There is basically two schemes for the kids in SBI. They are:
- Pehla Kadam
- Pehli Udaan
|Particulars||Pehla Kadam||Pehli Udaan|
|Minimum Balance Requirement||No Such Requirement|
|Internet Banking||Can Pay Bill payments, NEFT issues, Demand draft,etc||Can Pay Bill payments, NEFT issues, Demand draft,etc|
|Maximum Balance||Rs. 5 lakhs in the Account|
|Age Limit||Any minor but jointly opened by parents||Minors above age of 10 years (Sole name)|
|Who can operate ?||Both parents and kid||Only kid|
|Mobile Banking||Can operate, with daily limit of Rs. 2,000||Can operate, with daily limit of Rs. 2,000|
|KYC requirements||Date of proof of child with that of parent||Date of proof of child with that of parent|
|Who can sign ?||Parents & Kids||Only Kids|
|Other features (Same as to other Savings Account Holder)||1. Int. Rate of 4% p.a. on daily balance
2. Can transfer accounts to other branch
3. Nomination facility available
4. No Transaction charges
5. Free Passbook.
|Debit Cards||Yes. Specially designed for kids||Yes. Specially designed for kids|