When you get doubts or worries in your mind about your children & their future, need not worry. There are investment plans in the market that might help you in providing security for your children. They always try to provide the best that is possible for your child. For example, then we can count the Fixed Deposit in the child’s name or some insurance policy too. If you believe in conventional ways, you better start investing in gold.
But, a question arises, is saving your prime agenda? If yes, then what to do? The answer here is to go for ‘Savings Account.’ Getting a savings account opened for your children would help in different ways. You would earn regular & assured returns, and you would have a backup for their education & marriage too. This way, children would also learn to save & invest from a very young age.
So, invest in your child’s future with a saving account. Nowadays, different banks are offering different types of savings accounts, providing offers & returns. So, you can choose from the following child savings account for your children’s future:
1. Young Stars & Smart Star Account by ICICI Bank: As visible by the name, this account has two major parts, Young Stars & Smart Star Account. The Young Stars Account is for the minors, i.e., for any child below 18. On the other hand, the Smart Star Savings account can be opened in the name of children who lie between 10-18 years of age. The limit up to which money can be withdrawn from this daily is Rs.5000. The minimum average balance(MAB) required in the account at all times is Rs.2500, failing to which you would have to pay 5 percent of the shortfall in your account as a penalty.
2. Pehla Kadam & Pehli Udaan by SBI: These special accounts created for the minors teach them about the modern-day banking system, which would help them a lot. Both of these accounts are for minors. But, the major difference between them is the need for a guardian/parent. In Pehla Kadam Account, minors need a guardian/parent to open the account while on the other hand, Pehli Udaan can be opened without one by any child over 10 years of age.
The minimum balance required in this account is divided into 3 parts according to the region in which the account holder resides. For the metro cities, the minimum balance required is Rs. 5000, for the accountholders of urban areas, MAB is Rs. 3000, in semi-urban areas, it is Rs.2000, and lastly, in the rural areas or villages, it is just Rs.1000. The daily withdrawal possible from this account is Rs.5000, with the maximum limit of Rs.5,00,000 to be kept in the account.
3. Future Stars Savings Account by Axix Bank: As we are talking about children’s future, this account again is for the younger ones(minors). If you want to open this account for your child who is below 10 years of age, then a guardian is required otherwise not. This account provides e-statements every month through which you can keep a check on the account and the transactions through it.
If you have more than Rs. 50,00,000 in your child’s account, then you will earn an interest of 4 percent on the amount, and anything below that would yield you a percentage of 3.5. The bank provides for free cheque books & an accident insurance(only if the card is swiped somewhere at least once in 6 months) also.
4. Kids Advantage account by HDFC Bank: The withdrawal allowed on this account through an ATM is Rs.2500, and while shopping, you can spend up to Rs.10,000 in a single day. The only condition for getting this account opened is that the guardian/parent of the child should already have a savings account with HDFC bank & the child should be a minor. An education cover of Rs.1,00,000 is also provided through this account.
5. Citi Bank Junior Account: This account is open to all the children below 18 years of age, but the debit card is only for the children above 15 years of age. This account provides some attractive facilities. You can transfer money into someone’s bank anywhere in India for free. Online banking is available with 24×7 customer service to help you with your problems & queries.
6. Power Kids Account by IDBI Bank: The minimum balance that you need to maintain while operating this account is Rs.500. But, the good thing is that even if you fail to maintain this balance, there is no penalty or charges for the same. Your child can withdraw up to Rs.2000 daily using the ATM or Debit card issued by the bank. A personalized checkbook, e-statements every month & a passbook with your transactions’ entry is given you from the date you get the account opened. This account also helps the child is getting an education loan at cheap interest rates in the future.
The whole point behind opening a Savings Account for small children is to teach them the value of hard-earned money & encourage them to save. This account also provides the parent/guardian with a backup or child savings account that can be used for the children’s education, marriage, or any other expenses. This way, they also get knowledge about modern-day banking services & how they function. This type of information is essential for children nowadays.
A post by https://www.myloancare.in/