Kids can be very adaptive. They observe and learn everything quickly laying the foundation of critical skills that shape their future. What you provide them today helps them secure a better tomorrow. So, as your child grows up, you want to equip them with the best tools to adjust to the world’s ways. One such valuable gift is a savings account. The good thing is that banks like IDFC FIRST Bank offer specialised accounts for kids to cater to their specific needs. Learn how such an account supports your child’s future.
Minor bank account opening online: Valuable perks
Opening a savings account for your child introduces them to the concept of financial discipline early. Here are some perks of a child savings account:
Inculcates saving habits
Children from a young age learn how to save from their pocket money and gifts, with a savings account. It gives them a good platform to make consistent deposits.
Guided independence
As you are the account operator, you can ensure safety and guide the child to make the right decisions with the account. This gives them the needed support while training them to be independent.
Low maintenance
Most banks, like IDFC FIRST Bank, have no minimum balance requirement for a minor savings account operated under a guardian. The Bank’s Self operated Minor Savings Account has a low AMB of 10K. This makes it is easy to maintain the account without the pressure of going below a balance threshold.
Grows with the child
The savings in the bank account grow steadily as your child grows. So, even a minimal interest rate makes a bigger splash over the years.
Assists with financial planning
As the account is easily manageable through a mobile app, you can track transactions, returns, and savings at your fingertips. With such inputs, you can use the account to plan and budget for your child’s routine expenses and long-term goals.
Steps to open a bank account for your child conveniently
The minor bank account opening process is designed to be simple so your child can learn easily. Here’s how the process typically goes:
1. Pick an account category
You can choose between different types of minor savings account categories based on your child’s age group and the specific benefits you want.
2. Submit basic details
Once you’ve made your selection, you can submit basic information about your child and yourself as the guardian, like name, address, contact information, etc. This stage is simplified as the bank already has information from your existing savings account.
3. Complete KYC
As you need a savings account to operate as a guardian for your child’s savings account, the documentation mainly involves passport-sized photographs and proof of birth. All other details are auto-fetched from your savings account.
4. Activate services
Once verified, the account takes minutes to get activated, and you receive all the details via mail and SMS alerts. You can then download the app and activate important services.
5. Make an initial deposit
Get the account up and running with the initial deposit. There is generally no limit on this amount.
Things to consider before opening a minor savings account
Before you finalise the decision to open a bank account for your child, evaluate these crucial aspects to get it right:
Control and limits
Check limitations on ATM cash withdrawals and other transactions to manage the account accordingly and avoid unnecessary charges.
Account features & charges
Check for various features bundled with the account. As it is a specialised account, banks like IDFC FIRST Bank include value-added benefits like free child education cover, monthly interest credit, unlimited ATM transactions, and more.
Digital monitoring
In today’s digital world, you want to be able to monitor your child’s account from anywhere, anytime, without any branch visits. So, check the mobile app features.
Future transition
Confirm whether the account can smoothly convert into a regular savings account, or are there any other specialised options to support banking in different growth stages.
Final words
Focusing on financial education is just as important as academic and extracurricular skills. It shapes how your child grows up to make critical financial decisions. Most adults who fall short in these areas, struggle with tax planning, choosing the right investments, budgeting, and managing credit. You can change this for your child by teaching them early, and a minor savings account is a good start.
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