How to Open a Savings Account for Your Child?

source: investopedia

As a responsible parent, you must try to inculcate healthy financial habits in your children. Opening a savings account provides a safe place for your children’s money while earning some interest.

Here we will provide information on how to open a savings account for minors. Continue reading to know more about it.

How to Open a Savings Bank Account for Minors?

Here are a few steps to open a savings account for minors:

• Step 1: You must have a savings account in your name at the preferred bank to open a minor’s savings account.
• Step 2: You will have to fill out the form for opening a savings account. You will need to provide your minor’s name as the primary account holder and your name as a joint holder.
• Step 3: You might be asked to provide your photos and the minor’s photograph.
• Step 4: Submit all the documents and fill up an application form with your details, if required.
• Step 5: You will be asked to sign for all future transactions.
• Step 6: After completing these steps, the bank will provide various documents related to the bank account.

You must keep the following documents handy while opening savings accounts for children: 

• Minor’s birth certificate (to establish the relation with the parent)
• Minor’s PAN card
• Address proof of the children

Minors of any age can have an existing savings bank account. However, this bank account will be opened with a guardian or parent as a joint account holder.

Certain financial institutions let children above ten years of age who can sign uniformly to have a savings bank account. The minor will solely own this account.

The features of a savings bank account for minors are as follows: 

• A savings bank account for minors will have a minimum balance requirement.

• The account holders, the minor, will get a debit/ATM card to access the account. However, this card will have a lower limit in terms of the withdrawal amount. It will ensure that the child has access to the funds in times of need while reducing the chances of overspending.

• Individuals who become joint holders with their children will get notifications of the transactions made by the primary account holder.

Now that you know how to open savings accounts for your children, encourage them to develop healthy savings habits and take them through the different banking options. It will help them make an informed decision in the long run.