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6 Super Smart Savings Bank Account Options For Your Child

Home Buyers as Financial Creditors

If you are worried about your child's future, many investment plans in India can assure better security and future of your child. For instance, you could either open a Fixed Deposit account in your child's name or get an insurance policy for them. If you're a little more traditional, you can start investing in gold as well. If saving is your prime agenda, opening a Savings Account for your child will certainly help. There are several popular Savings Accounts offered by banks that can assure guaranteed returns and build a corpus for your child's education or marriage. It also helps to inculcate the habit of savings in children from an early age.

Young Stars & Smart Star Account by ICICI Bank : This savings account by ICICI Bank is divided into parts. While the Young Stars can be opened for minors who are below the age of 18 years, the Smart Star Savings Account is designed for children between the ages of 10 and 18. The daily withdrawal limit or spending limit on the debit card is set at Rs. 5,000. However, the minimum monthly average balance (MAB) to be maintained is Rs. 2,500. You will be charged 5% of the shortfall in required MAB if you fail to do so.

Pehla Kadam and Pehli Udaan by SBI : Pehla Kadam and Pehli Udaan are savings bank accounts for minors that help children to understand the different channels of modern-day banking. The Pehla Kadam account can be for minors in collaboration with the parent or guardian, while the Pehli Udaan account is specifically designed for minors above the age of 10 years who can open the account without the parent/guardian.

The MAB requirement is set at Rs. 5,000 in a metro, Rs. 3,000 in urban areas, Rs. 2,000 in semi-urban areas and Rs. 1,000 in rural areas. The maximum balance in the account can be kept up to Rs. 10 lakhs only. The withdrawal limit is set at Rs. 5,000.

Future Stars Savings Account by Axis Bank : This Savings Account by Axis Bank is designed for children below the age of 18 years. For children below the age of 10 years, the account can be operated by a guardian. You can open this account for your child with a minimum deposit of Rs. 2,500. You can regularly track this account through monthly e-statements. You can also avail of a free cheque book every quarter in your name or your ward's name. The interest on an account balance of Rs. 50 lakhs and above is 4% p.a. and for an account balance up to Rs. 50 lakhs is 3.5%. You can also enjoy the benefit of personal accident insurance cover of up to Rs. 2 lakhs provided the card is swiped once every six months.

Kids Advantage Account by HDFC Bank : This account is also specially designed for kids up to the age of 18 years. The daily shopping limit on the account is set at Rs. 10,000, and your child can withdraw Rs. 2,500 through an ATM. You also get a free Education Insurance cover of Rs. 1,00,000. To open this account, you as a parent/guardian should have a Savings Account with HDFC, and your child should be a minor or under the age of 18.

CitiBank Junior Account : Children below the age of 18 can have this account opened in their name. However, the Citibank Junior Debit Card is issued to children only above the age of 15. This account comes with free online transfers to any bank account within India, a free online banking facility and a 24-7 customer service with CitiPhone Banking.

Power Kids Account by IDBI Bank : The Power Kids Savings Account by IDBI Bank requires a monthly minimum average balance (MAB) of only Rs. 500. No penalty charge will be levied in case of non-maintenance of the desired average quarterly balance. The daily withdrawal limit is set at Rs. 2,000 on its ATM-cum-Debit Card. You get a personalised cheque book, free monthly e-statements, and passbook with this account. The best part of this Savings Account is that your child can avail an Education Loan at a competitive interest rate in the future for higher education in India or overseas.

The Bottom Line :Opening a savings account will not only encourage your child to save but also teach them the value of money. In the meantime, you also educate them about the banking system and its functionality.

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