Hello fellow gruhinis,I hope my last blog inspired you to try out the 5 ways to make your children understand what money means.
Join me today, as I take a step further by helping you choose the Children’s Savings Account for your little one/s.
I did some window shopping around my residential area and found that there are at least 5 private sector banks offering children’s savings account. As you or your spouse may already be banking with one of the below mentioned banks; all you have to do is visit the branch along with the age proof of your child.
Gruhini Timesaving Tip: Before proceeding to the Bank…
1. Have an existing bank account of the guardian (mom or dad)
2. If you don’t have an account, then your address and identity proof along with original copies to open the account.
3. A copy of the birth certificate of your kid for his account. Kid must be a minor (age group 1 day-18 years) to open this account.
All prepared? Let’s go Banking!!!!
The Best Bank for your child:
The five children’s savings account (mentioned below) have some standard basic features, so you should go for one which offers you the ease of access to the branch with your child and offers an investment or savings plan that suits you.
|Features||HDFC Kids Advantage||ICICI Young StarSavings||Kotak Junior Account||Axis Future Stars Savings||My First Yes Account|
|Children’s Attraction||Personal cheque book, international debit card for children above 7 years||International debit card for children above 7 years.||Debit card for children above 10 years. Freebies like movie tickets and other discounts if recurring deposit is done from the account.||ATM card with a daily limit of Rs 1500 for children below 12 years. Customised Debit card for kids above 12 years.||International debit card for children above 10 years.|
|Parent’s Attraction||Monitor account online, education insurance cover, daily limit of Rs 2500 on ATM or debit card withdrawal and Rs 2500 on spending.||Account monitoring, setting of customized withdrawal and spending limits. (Rs 1000/2500/5000)||Higher age limit (10 years) for debit card for kids, set your own withdrawal limit for kids (eg-Rs 100 or Rs 500 a day)||Personal accidental cover of Rs 2 lakh and lost card protection upto Rs 40,000. Auto debit facility on weekly/monthly basis||Control over net-banking access for child. Customize withdrawal limits for kids.(Rs 5000/2000/1000) per day|
|Saving/Investment Plan||Compulsory transfer of Rs 1000 every month for a year into the account and then transfer it to a fixed deposit or a mutual fund SIP. Automatic sweep-in fixed deposit (of one year) if the account balance crosses Rs 35,000||Open a savings/fixed deposit/recurring deposit account.||Transfer Rs 1000 from Junior Account to a recurring deposit account earning 8.5% interest or a systematic investment plan in a mutual fund of your choice.||A Fixed Deposit (for 6 months) of Rs.25,000 or a recurring deposit of Rs.2,000 for a year||Automatic- debit of pocket money from parent’s to child account.|
|Savings AccountInterest rate||4% per year||4% per year||5.5% -on account balance of upto Rs 1 lakh. 6% on account balance of more than Rs 1 lakh||4% per year||6%–on account balance of upto Rs 1 lakh.7% if account balance is more than Rs 1 lakh|
|Minimum Account Balance||Rs 5,000 (average monthly balance)||Rs 2,500 (average monthly balance)||Rs 5,000 Requirement waived off if recurring deposit or SIP of Rs 1000 is done.||Rs 2500 (average quarterly balance in metros)||Rs 2500 (average quarterly balance). Requirement waived off if FD of Rs 25000 in parent account.|
Will be glad to hear your thoughts, give me a shout at
Email: firstname.lastname@example.org/Twitter: justrachna/Linkedin: in.linkedin.com/in/rachnamonga/