Best Savings Accounts for Minors

Last Updated : Sept. 16, 2024, 1:32 p.m.

Having a savings bank account is one of the primary ways people choose to save their hard-earned money. That’s why over 80% of our population has a savings bank account. Many parents like to save not only for themselves but also for their children using these accounts. But what if an individual wants to teach their child the importance of money management skills early on? For such purposes, you can open a savings account for minors who are below 18 years of age. Several banks offer savings accounts especially designed for minors.

Your child can earn interest on the money in their account while keeping the money safe. A savings account for minors ensures that you don’t have to wait until your child reaches the age of maturity (18 years) to open an account. This account is specifically made for minors and offers a wide range of benefits such as a debit card and cheque book. A child can learn the basic functions of a savings bank account at an early age, which will benefit them in the future. In this article, we will cover some of the best savings accounts for minors available now so that you can choose the most suitable one for your needs. Keep reading to learn more!

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How Does a Minor Savings Account Work?

Before knowing about the top savings accounts for minors in India, it is important to have a brief knowledge of them. Banks usually offer two kinds of Minor Savings Accounts – One for children below 10 years of age and another for children between 10 to 18 years of age. Accounts for children under 10 years old must be co-managed with a parent or guardian, while older children can manage their accounts independently.

However, there is one thing that you need to remember: a minor savings account becomes operative as soon as the child becomes an adult i.e. 18 years old. Once the simple paperwork is completed, the account will get converted into a regular savings account and parents can no longer operate the account. Several top banks offer exclusive Savings Accounts for Minors, such as State Bank of India (SBI), HDFC Bank, ICICI Bank, Kotak Bank, Union Bank of India, IDFC First Bank, etc.

Top Savings Account Offered by Banks for Minors

Furthermore, we have listed some of the best savings accounts for minors along with their key features. Check it out to know more!

SBI Savings Account for Minors

State Bank of India (SBI) is India's leading public sector bank and offers a variety of financial products. SBI provides two special savings accounts for minors called ‘Pehla Kadam’ and ‘Pehli Udaan.’ ‘Pehla Kadam’ is for minors of any age, while ‘Pehli Udaan’ is for those aged 10 to 18 who can sign uniformly. Below are some key features of these savings accounts for minors. Take a look.

SBI Pehla Kadam is a savings account designed specifically for minors (children below 18 years old) offered by the State Bank of India (SBI). This approach is an excellent method to familiarize your child with savings and introduce them to fundamental banking principles.

Here are some key features of this best bank account for child:

• Joint Account: A parent or guardian can be a joint holder along with the minor.
• No Minimum Balance: There's no minimum balance requirement to maintain the account, making it accessible to anyone.
• Easy Account Opening: Opening an account is a hassle-free process and can be done at any SBI branch.
• Free Passbook: A child-friendly passbook is offered at no cost to help monitor deposits and withdrawals.
• Limited Digital Banking Access: Minors receive restricted access to online and mobile banking, enabling them to check their account details but with limited ability to make transactions (within set daily limits).
• Benefits for Learning: This account can be a valuable tool to teach your child about saving habits, managing money, and understanding basic banking functionalities in a safe and controlled environment.

Here's a table summarizing the key points:

SBI Pehli Udaan is another savings account offered by the State Bank of India (SBI) specifically designed for minors above the age of 10. It caters to a slightly older age group compared to Pehla Kadam and offers more independence in managing finances.

Here's a breakdown of SBI Pehli Udaan:

• Sole Account for Minors: Unlike Pehla Kadam, Pehli Udaan is a standalone account opened in the minor's name. However, a parent or guardian's involvement might still be required depending on the minor's age and bank regulations.
• Age Eligibility: Pehli Udaan is generally for minors above 10 years old who can sign on the account opening form. Specific age limits may vary, so check with SBI for current guidelines.
• Basic Banking Features: Pehli Udaan offers functionalities like deposits, withdrawals (with some limitations), and potentially limited Internet banking access for managing the account.
• Encourages Financial Independence: This account allows minors to experience a sense of ownership and responsibility for their finances, helping them develop good saving habits and basic money management skills.

Here's a table comparing Pehla Kadam and Pehli Udaan:

Choosing between Pehla Kadam and Pehli Udaan

• Pehla Kadam is ideal for younger children where parental guidance and control over finances are preferred.
  
• Pehli Udaan is suitable for older minors who can handle some level of financial responsibility and want to learn more independent money management.

Overall, SBI Pehli Udaan empowers minors to take ownership of their finances while still providing a safe environment to learn under parental guidance (if applicable). Be sure to consult SBI for the latest information on eligibility requirements, account features, and any applicable fees.

HDFC Bank Kids Advantage Account

HDFC Bank is one of India's top private banks and offers a special Savings Account for Minors called the HDFC Bank Kids Advantage Account. This account helps children learn how to manage money. You can start it with just INR 1,000 a month. It includes benefits like an ATM-cum Debit Card and insurance. Children have limited access to funds until they turn 18. A parent or guardian needs to have an HDFC Savings Bank Account to open the best savings account for a child.

Below, we list some key features of the HDFC Bank Kids Advantage Account. Check them out.

ICICI Bank Savings Account for Minors

ICICI Bank, one of India's leading private banks, offers two types of savings accounts for minors that help children learn essential money-saving skills at an early age. With the ICICI Bank Young Stars Account, parents can open and manage a savings account to plan their child's financial future. This account comes with several exciting features. Take a look below:

The other best savings account for child includes the Smart Stars Savings account. It empowers young account holders to manage their finances under the guidance of a guardian. Some key features include:

Bank of Baroda Kids Bank Account

Bank of Baroda has emerged as a stronger public bank than it already was. Among its wide range of banking products, Bank of Baroda provides savings accounts for Minors to children below 18 years of age. If you are a parent and want to give a wonderful money-saving habit to your kid, a Bank of Baroda Champ account could be a perfect option for you. With this account, you will not need to pay any charges on the School Fee payment with Demand Draft (DD) or NEFT or IMPS for a maximum amount of INR 1 lakh per month.

We are showing some other features of the Bank of Baroda Champ Account below. Please check it out.

Axis Bank Future Stars Savings Account

Axis Bank, one of India's top private banks, offers an exclusive banking product for children with its Future Stars Savings Account. This Savings Account for Minors from Axis Bank provides your children with a strong financial head start and helps them understand the importance of handling money responsibly. This account includes special features that make it one of the best in the market. For example, if your child is above 10 years of age, they can receive a Debit Card featuring their favorite image when they have an Axis Bank Future Savings account.

In the below table, you can see some of the important details and key features related to the Axis Bank Future Stars Savings Account.

PNB Junior Savings Fund Account

There is little doubt about the excellence of the banking products offered by the Punjab National Bank (PNB). One such amazing product is the PNB Junior Savings Fund Account. This can be opened by any minor of any age. If the minor is below 10 years of age, it is important to have a parent/guardian to operate the account. Children between 10 to 18 years of age can open and operate their savings bank account independently.

If you want to know some of the exciting features of the PNB Junior Savings Fund Account, you can check the below table.

Kotak Mahindra My Junior Account

Kotak Mahindra Bank is famous for its extraordinary banking services and when we are talking about the Savings Account of Minors, we cannot exclude its My Junior Account. This account will help in cultivating a saving habit in your children at an early age. Not only this, this savings account for minors is an excellent way to get several privileges across Dining, Entertainment, and Shopping on famous Kids brands like Firstcry, TINKLE, Freshmenu, etc.

You can also get up to 4% Interest rate on the Junior Savings Account Balance and the Guardian/Parents’ saving account balance. You can easily open a My Junior Account by visiting the official website of Kotak Mahindra Bank or the nearby branch. The below table has some of the important details related to the Kotak Mahindra My Junior Account. Please have a look!

IDBI Power Kids Savings Account

IDBI Bank recognizes that parents increasingly begin saving for their children's future from the moment they are born. In response to this trend, IDBI has introduced the Power Kids Account, designed to support the financial goals for the next generation from day one.

This specialized account not only helps in setting aside funds for the child's future but also inculcates a habit of savings from an early age. Take a look at its key features below:

So, these are some of the top savings accounts for minors offered by leading private and public banks. You can choose the most suitable one for you as you have a better understanding of them.