Opening a savings account for your child ensures a simple way to build financial awareness. A minor’s savings account offers both security and financial knowledge by letting kids start saving under their guardian’s supervision. With online banking, this process has become easier and faster. This guide explains what a child bank account is, how to open one online, as well as what features and requirements you need to know.
What is a Minor Savings Account?
A minor savings account is meant for children below 18 years of age. This account is managed by the corresponding parent or guardian until the child becomes an adult. The account allows deposits, interest earnings and all basic transactions similar to regular savings accounts. Once you open bank account online for your child, it helps them learn financial discipline and develop the habit of saving.
Eligibility Criteria
In order to open a minor savings account online, a few eligibility and documentation requirements need to be met. Some of them are as follows:
- The age of the child must be less than 18 years old when opening an account.
- The account holder should be a parent or a legal guardian of the minor.
- The parent or guardian will typically require a savings account with the same bank. Otherwise, it has to be opened along with the minor account or before.
A few of the essential documents to open a minor savings account online are as follows:
- The birth certificate or any other valid evidence of the date of birth of the child.
- A passport-size photograph of the child
- KYC documents of Guardian, including identity and address proofs.
Minor Savings Account Opening Process
To open a minor savings account, you just follow these simple steps:
- Step 1: Go to the official website of your preferred bank. Search for the ‘Minor Savings Account’ tab.
- Step 2: Choose your preferred Minor Savings Account type. Banks like IDFC FIRST Bank allow you to choose between the following options:
Minor Savings Account (Under Guardian): This account is available for all minors below 18 years of age and is completely managed by the parents or guardians of the child.
FIRST Prodigy (Minor Self-Operated Savings Account): This account is available for minors aged between 10 and 18 years. These are self-operated accounts and provide benefits like monthly interest credit. It also offers a feature-packed Visa Platinum Debit Card to account holders who opt for an average monthly balance of ₹10,000.
- Step 3: Fill out the essential information, such as the full name and date of birth of the minor, as well as the KYC of the Parent/Guardian.
- Step 4: Upload the necessary documents and follow the on-screen instructions.
- Step 5: You can select the account variant depending on your needs. Banks like IDFC FIRST Bank allow you to choose between different account variants – ₹10,000 (For FIRST Prodigy) or ₹25,000 (For Minor Savings Account). You can also get access to a feature-packed Visa Platinum debit card with the minor savings account opened with IDFC FIRST Bank.
- Step 6: Complete digital KYC by following the on-screen prompts and the bank representative’s instructions. Soon after, you will get access to your new minor savings account and start using it for day-to-day transactions.
*Please note that the step-by-step process explained above is an overall process for opening a minor savings bank account. The actual process may slightly differ depending on the account type and preferred bank.
Final Thoughts
Opening a minor savings account can allow your child to learn about the basics of finances in a safe space. It helps develop their abilities to manage day-to-day transactions long-term, while encouraging them to save funds for investing in their education and achieving career goals.
