In the recent guideline by the Reserve Bank of India, minors above the age of 10 years are allowed to open and operate savings bank accounts independently, if they so desire. A savings account or fixed deposit or recurring bank deposit account can be opened by a minor of any age through his/her natural or legally appointed guardian. Most of the banks offer additional banking facilities like internet banking, ATM/ debit card, cheque book facility etc., subject to the safeguards that minor accounts are not allowed to be overdrawn and that these always remain in credit.
State Bank of India has come up with two accounts specially designed for kids called PehlaKadam and PehliUdaan.
Most of the features come with 'per day limits' to ensure that they spend the money wisely.
Transfer ability of accounts to any SBI Branch without changing the account number.
Nomination facility is available and recommended.
Specially designed branded Passbook issued free of charge.
Inter Core charges NIL for transfer transactions.
Features PehlaKadam PehliUdaan Eligibility Minor of any age.
This account will be jointly opened with the parent/guardian.
Minors above the age of 10 years and who can sign uniformly.
This account will be opened in the sole name of the minor. Minimum Balance
No Minimum Balance requirement. Cap on Balance Rs. 5 lac in the Account Rs. 10 lac aggregate deposit on the CIF of the Minor Mode of Operation
Jointly with the Parent/ Guardian or Singly by Parent/ Guardian Singly operated Internet Banking With Enquiry rights and limited transactions like - Bill payment, Opening e-TDR/e-STDR/e-RD, Inter-Bank funds transfer (NEFT only), and Issue Demand Draft.
Per day transaction limit of Rs. 5,000/- With Inquiry rights and limited transactions like - Bill payment, Opening e-TDR/e-STDR/e-RD, Inter-Bank funds transfer (NEFT only), and Issue Demand Draft. Per day transaction limit of Rs. 5,000/-
KYC Requirements Date of Birth proof of the Minor + KYC of the Parent Date of Birth proof of the Minor + KYC of the Parent Cheque book Specially designed Personalised chequebook (with 10 cheque leaves) will be issued to the Guardian in the name of minor u/g guardian.
Specially designed Personalised chequebook (with 10 cheque leaves) will be issued if the minor can sign uniformly. Photo ATM-cum-Debit Card
Child's photo embossed ATM-cum-Debit Card with withdrawal/POS limit of Rs. 5,000/. Card will be issued in the name of the minor and Guardian.
Photo embossed ATM-cum-Debit with withdrawal/POS limit of Rs. 5,000/- will be issued in the name of the minor. Mobile Banking
With viewing rights and limited transaction right like: Bill payment, Top ups. Per day transaction limit of Rs. 2,000/- With viewing rights and limited transaction right like - Bill payment, Top ups, IMPS. Per day transaction limit of Rs. 2,000/- Auto sweep Auto sweep facility with a minimum threshold of Rs. 20,000. Sweep in multiple of Rs 1,000 with a minimum of Rs. 10,000 Over Draft for Parents/Guardians Overdraft against Fixed deposits for parent/guardian or two months' salary in case of Corporate Salary package accounts as the case may be subject to fulfilling other terms and conditions.
No overdraft facility under this product Standing Instruction
An option of setting up of one Standing Instruction for Recurring Deposit, free of charge.
State Bank of India has come up with two accounts specially designed for kids called PehlaKadam and PehliUdaan.
Most of the features come with 'per day limits' to ensure that they spend the money wisely.
Some of the basic features of both the accounts:
Interest at 4.00% p.a.calculated on a daily balance.Transfer ability of accounts to any SBI Branch without changing the account number.
Nomination facility is available and recommended.
Specially designed branded Passbook issued free of charge.
Inter Core charges NIL for transfer transactions.
Features PehlaKadam PehliUdaan Eligibility Minor of any age.
This account will be jointly opened with the parent/guardian.
Minors above the age of 10 years and who can sign uniformly.
This account will be opened in the sole name of the minor. Minimum Balance
No Minimum Balance requirement. Cap on Balance Rs. 5 lac in the Account Rs. 10 lac aggregate deposit on the CIF of the Minor Mode of Operation
Jointly with the Parent/ Guardian or Singly by Parent/ Guardian Singly operated Internet Banking With Enquiry rights and limited transactions like - Bill payment, Opening e-TDR/e-STDR/e-RD, Inter-Bank funds transfer (NEFT only), and Issue Demand Draft.
Per day transaction limit of Rs. 5,000/- With Inquiry rights and limited transactions like - Bill payment, Opening e-TDR/e-STDR/e-RD, Inter-Bank funds transfer (NEFT only), and Issue Demand Draft. Per day transaction limit of Rs. 5,000/-
KYC Requirements Date of Birth proof of the Minor + KYC of the Parent Date of Birth proof of the Minor + KYC of the Parent Cheque book Specially designed Personalised chequebook (with 10 cheque leaves) will be issued to the Guardian in the name of minor u/g guardian.
Specially designed Personalised chequebook (with 10 cheque leaves) will be issued if the minor can sign uniformly. Photo ATM-cum-Debit Card
Child's photo embossed ATM-cum-Debit Card with withdrawal/POS limit of Rs. 5,000/. Card will be issued in the name of the minor and Guardian.
Photo embossed ATM-cum-Debit with withdrawal/POS limit of Rs. 5,000/- will be issued in the name of the minor. Mobile Banking
With viewing rights and limited transaction right like: Bill payment, Top ups. Per day transaction limit of Rs. 2,000/- With viewing rights and limited transaction right like - Bill payment, Top ups, IMPS. Per day transaction limit of Rs. 2,000/- Auto sweep Auto sweep facility with a minimum threshold of Rs. 20,000. Sweep in multiple of Rs 1,000 with a minimum of Rs. 10,000 Over Draft for Parents/Guardians Overdraft against Fixed deposits for parent/guardian or two months' salary in case of Corporate Salary package accounts as the case may be subject to fulfilling other terms and conditions.
No overdraft facility under this product Standing Instruction
An option of setting up of one Standing Instruction for Recurring Deposit, free of charge.
