Minor Bank Account

Opening a Savings Account for your child, while he/she is under the age of 18 years, is a good step in that direction. A under 18 Savings Account requires a certain minimum balance like any regular Savings Account, but it comes with certain options and limitations which allow you, the parent/guardian of the child, to help the child develop an ability to manage their finances.

Basic Features

As mentioned earlier, Savings Accounts, even for minors, come with a minimum balance requirement. To add to that, the account has a maximum limit, after which the bank will usually deposit the extra amount (which exceeds a certain limit), into a Fixed Deposit account for a one-year period, in the minor’s name.

Further, the child will be given an ATM/debit card for access to the account, but with a lower limit than a regular Savings Account, in terms of amount. This helps ensure that while the minor has access to funds when needed, they do not overspend. Also, being a joint account holder with the minor, you will also get notifications of any transactions they make.

There are additional features of the Savings Account you can also take advantage of.

Procedure for opening the account:

• You need to have a Savings Account in your name at the bank you intend to open the child’s Savings Account in.
• You need to fill out the form for opening the account, with the minor as the first account holder, and you as the joint holder. You also need to submit your photographs along with this form. Some banks ask for the minor’s photograph as well.
• You need to submit the child’s birth certificate as age proof. The child must be below 18 years of age. As well as age proof, this is also required to establish your relationship with the minor.
• You need to submit your details, particularly PAN card information, as well.
• As the parent/guardian in this case, you may be asked to fill out a separate form with your information as well.
• The bank will also require that you submit address proof for the minor.
• Finally, the bank will ask for your signature for future transactions.
• Once all this is done and verified, the account is created, and the bank will hand over the documents regarding the bank account. You will also be given a cheque-book.

The first and most important step in encouraging your child to develop good savings habit always begins with finding how to open a Savings Account for a child. And that, is a good start indeed.

Features of Indian Bank Smart Kid Savings Bank Account