A Child's Savings Account is a specially designed financial tool tailored to the unique needs and future aspirations of young individuals. These accounts provide an opportunity for children to start their financial journey early, teaching them valuable lessons about saving, money management, and financial responsibility. Therefore, a savings account can help you nurture a sense of financial discipline and secure a bright financial future for your young ones.
Zero balance Child Savings Account
Interest rates up to 7.25% p.a.
Tax exemption under Section 10 (32) of the Income Tax Act, 1961
Here are the eligibility criteria for opening a savings account for a child.
The child must be a resident of India
They should be under the age of 18 years
You may be asked for the following documents when opening a savings account:
A duly filled and signed application form
A Child Savings Account, also known as a Kids Savings Account or Minor Savings Account, is designed specifically for young individuals below a certain age. It offers features tailored to the financial needs and education of children.
Many banks offer the convenience of opening a Minor Savings Account online, allowing parents or guardians to complete the process from the comfort of their homes.
Age requirements for opening a Minor Savings Account may vary among banks, but they typically cater to children and teenagers under the age of 18. Some banks offer accounts for infants as well.
Typically, you will need to provide your child's birth certificate, proof of identity, proof of address, and the guardian's documents, such as Aadhar card or passport. Specific document requirements may vary by bank.
Yes, children can access their accounts with parental supervision, and parents or guardians can actively oversee and guide their children's financial activities, ensuring responsible money management.
Minor Savings Accounts often offer higher interest rates, educational resources, lower minimum balance requirements, and features that cater to the financial needs of children, such as specialised debit cards.
Yes, children can set financial goals and track their progress using their accounts. Achieving these goals helps children develop financial responsibility and discipline.
While there may not be specific tax benefits, interest earned on Minor Savings Accounts is typically subject to the child's income tax, which may result in lower tax liability compared to an adult's income tax rate.
Yes, family and friends can make monetary gifts or contributions directly to a child's savings account, encouraging saving and responsible money management from an early age.