Opening a bank account for children? 5 things you must consider

New Delhi: Being parents it is important to define the thin line between needs and wants to your children. Bank account for children help parents to create a corpus for their kids and explain to them the basics of money management.

If your child has not attained 18 years of age, then you can open a minor account. Reserve Bank of India (RBI) allows banks to offer savings accounts to minors above the age of 10 years which they can operate themselves. Many banks offer minor accounts, for instance, State Bank of India (SBI) has PehlaKadam and PehliUdaan, ICICI Bank has Young Stars Account, HDFC Bank has Kids Advantage Account, etc.


Take your children with you while visiting the bank. Once they turn 10, your child can operate this minor account. It is important to teach them the basics of bank deposits and withdrawals. Also, explain to them how they can improve their spending habits.

Few things to consider before opening a savings account for your kid-

1. There are banks that offer two separate accounts for minors- one for below 10 years kid and other for those between the ages of 10 years and 18 years. When the child turns 18 years old the account gets inoperative and has to be converted into a regular savings account before it can be operated even by the child.

2. Once the account is treated as a normal savings account, your children have to complete the account opening formalities. After this, parents can no longer operate that account on behalf of their children.

3. The minor bank account doesn’t offer all the features. Facilities like internet banking, ATM or debit card, cheque book would be provided but these will be subject to safeguards and restrictions.

4. The child will get access to internet banking but banks get the mandate from the parent or the guardian to issue a login ID and password to their child. Make sure that the SMS alert feature is active to receive automated messages after the transactions. Also, take your child to the ATM to explain to him or her the process to withdraw money.

5. Show your child how to draw a cheque and explain to them how the monthly transactions reflect in it. See how the bank communicates with you about the transactions carried in children’s accounts. Also, there are some banks that may provide free quarterly statements and free email alerts.

6. In case of account for minor below the age of 10, the date of birth proof of the minor and parent’s Aadhaar and PAN will be the required else only the date of birth proof and Aadhaar of the minor will be KYC requirement.




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