Process to Open A Savings Account For Your Children

As we all know, the path to becoming a good parent comes with its own sets of joys and duties. You have to raise your children such that they are ready to face the challenges of the world and lead themselves to a better tomorrow by teaching them to be financially responsible and sound and inculcate good financial habits.

Opening a savings account for minors is a terrific way to achieve this objective. It teaches them about the importance of money, savings, and guides them to a future where they make healthy financial decisions. It is important to lay the groundwork early so that your children can develop this habit and build on it with time.

Things to Understand

There are a couple of things that you should keep in mind when you open a savings account for your children:

• Many banks have two variations of a minor savings account - one for those below the age of 10 and the other for those between the age of 10 and 18. In the first case, the account has to be operated jointly with the parent or guardian while in the latter, the child alone can operate the account.
• In either case, the account will be opened jointly with a parent/guardian. The joint account holder can monitor their child’s daily transactions and be notified of the same, place standing instructions, set daily transactions limit, and place necessary safeguards in place to avoid overspending.
• A debit card will be issued to the child although, its limit will be lower than a regular account.
• The account is likely to carry a minimum balance requirement. With us, it is Rs.500.
• In most cases, parents need to have an account in the bank where they are looking to open a savings account for their child. This allows you to set standing instructions to transfer funds easily.
• Minors can take advantage of internet banking features but with limited usage and transactions. This ensures that they become acquainted with doing transactions online in a safe and responsible manner.

 

Steps to Go About Opening a Minor Savings Account

The procedure to Process to open a savings account for your children is very straightforward although, it requires a bit of documentation.

1. Fill in the necessary account opening form with your child as the first account holder and you as the joint holder or guardian. You will be required to submit your photographs along with the form.
2. KYC requirements: You need to submit your child’s date of birth proof to ensure that he/she is indeed below the age of 18. You also need to submit the necessary documents that establish your relationship with the minor. With that, you will also need to furnish other documents like PAN card, address proof and Aadhaar card.
3. You may also be asked to fill a separate form detailing the transaction/withdrawal limits and other measures you want to set up in your minor’s account.
4. You and your child will be asked to sign to keep a record for future transactions.
5. Following the successful submission of these documents, your account will be created. You will get the cheque book and the debit card, ready to be used by your child.

Opening a savings account for your children is one of the best things you can do as a parent. With all the technology in the world today, it is essential that they learn the value of money from an early age. With you as the joint account holder by their side, you can guide and nurture them through the world of banking and money. It is also important to keep a watchful eye on them so that when they do make a mistake, you can correct them and incorporate sound financial values that last a lifetime.

Before openig the saving account know the ideal age to start a savings account

Know more about the various types of savings accounts and also know the difference between current and savings accounts

Also, learn more about the minimum monthly average balance and maintaining

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