How to Open a Minor Savings Account for Kids?

What is a Child Savings Account?

Things to Know Before Opening a Child Savings Account

How to Open a Minor Savings Account Online?

How to Open a Minor Savings Account Offline?

What are the Documents Required for Opening a Minor Bank Account?

What are Minor Bank Account Rules?

What are the Goals for Your Child’s Savings Account?

Benefits of a Child Savings Account

FAQs about Minor Savings Account

Can I open a bank account for my 11-year-old kid?

up-arrow
Yes, any minor below the age of 18 years can have a minor bank account. If a child is below ten years old will have a savings account with their parent or guardian as the joint account holder.

Can a guardian withdraw money from a minor bank account?

up-arrow
Yes, a parent or guardian can withdraw money from a minor bank account. However, when a child turns ten, they can opt to operate a savings bank account independently.

Can a child use UPI?

up-arrow
Children above fifteen with a single bank account are eligible for all UPI transactions. Those below fifteen years old and the joint holder cannot use UPI.

Is the interest on a minor savings bank account taxable?

up-arrow
Yes, interest acquired clubbed with the parent's or guardian's income is taxable under Section 64 (1A) of the Income Tax Act of 1961.

Which bank is best for a minor account?

up-arrow
No specific bank can be termed “ the best” bank for a minor. It is always important to check the terms and conditions before opening an account. There are several other factors, like the minimum balance to maintain, the maximum you can deposit, etc.

What do I need to open a savings account for my child?

up-arrow

Several documents are needed. However, it depends from bank to bank. The documents usually required are:

  • Proof of identity
  • Proof of address
  • Proof of address of the Guardian
  • Age proof of the Minor
  • Photograph of the Guardian
  • Several IDs of guardians like Aadhaar card, PAN card, etc.

Do we get an ATM card for a minor account?

up-arrow
A minor can have an ATM card if you apply for it. However, it is important to note that a child below the age of 10 can not have an ATM card.

How much money can you put in your child's bank account?

up-arrow
The maximum amount you can deposit in the account is 2.5 lakh rupees. You need to consider several other criteria. It is also advised to keep the papers, such as statements, correct.

What is the best savings account for a child?

up-arrow
There are various savings accounts in the market, several providers with various options, and many checks you should do, like knowing about the terms and conditions before opening the account.

Can we transfer money to a minor account?

up-arrow
Yes, you can transfer money to your child’s account. However, only a parent can do this.

Does having a savings account for my child have any benefits?

up-arrow
Having a children’s savings account has many benefits. Children learn about money management and are encouraged to develop saving habits.

Can I link my child's account to mine?

up-arrow
Linking of both accounts is possible. Many banks will permit linking the accounts.

Disclaimer

up-arrow

  • This is an informative article provided on 'as is' basis for awareness purpose only and not intended as a professional advice. The content of the article is derived from various open sources across the Internet. Digit Life Insurance is not promoting or recommending any aspect in the article or its correctness. Please verify the information and your requirement before taking any decisions.
  • All the figures reflected in the article are for illustrative purposes. The premium for Coverage that one buys depends on various factors including customer requirements, eligibility, age, demography, insurance provider, product, coverage amount, term and other factors
  • Tax Benefits, if applicable depend on the Tax Regime opted by the individual and the applicable tax provision. Please consult your Tax consultant before making any decision.

Latest News

Currently there are no news to show.

Renew & Download Policy Document, Check Challan, Credit Score, PUC & more

Anytime, Anywhere. Only on Digit App!

google-play-icon

Rated App

app-store-icon

Rated App