How to open Savings Account for children?

You have just watched your child excitedly drop a few coins into their piggy bank, proud of every sound as it clinks. You smile, knowing it’s their first step towards understanding money. But then it strikes you – what if they could actually see their savings grow, learning about money in a way that’s both real and practical? Opening a bank account for a minor could be the perfect start. Not only does it introduce them to the basics of financial literacy, but it also gives them a safe place to save.

Basic features with opening Savings Account for children

Here are five key features to look for:

• Minimal balance requirements: Numerous banks provide accounts that require little to no minimum balance, allowing you to begin saving without needing a significant initial amount.
• Parental oversight: These accounts enable you to oversee and manage your child's spending, promoting responsible money management. Some options even allow you to establish spending limits and receive transaction alerts.
• Competitive interest rates: Children’s savings accounts frequently offer more attractive interest rates than regular savings accounts, which can accelerate the growth of your child’s savings.
• Learning resources: Certain banks offer tools and educational materials to help children grasp the significance of saving and financial management.
• Additional benefits: Seek accounts that provide extra advantages, such as complimentary insurance, discounts on educational resources, or reward programs designed specifically for young savers.

Procedure for opening the account

To open a Future Stars Savings Account for your child at Axis Bank, follow these steps:

• Eligibility: This account is for children below 18 years old. If your child is under 10, a guardian will operate the account. Children above 10 can operate the account independently.
• Documents Required: You need your child’s latest photograph, proof of identity, and proof of address for both you and your child.
• Initial Deposit: The minimum deposit is ₹1,500 in rural areas and ₹3,000 in urban areas.
• Application Process: Visit the Axis Bank website and select “Open an Account.” Choose “Minor Account” and enter basic details like name, date of birth, and your relation to the minor. Upload scanned photos, address proof of the parent/guardian, and the minor’s identification documents.
• Account Features: The account offers personal accident insurance cover of ₹2 lakh, a Visa Platinum Debit Card, and a low average monthly balance requirement of ₹2,500 in metros.

Also Read: A Savings Account for all your needs

How can opening a Savings Bank Account help your children?

A Savings Bank account is the first step to financial planning and independence. The same can be done for your children.

The Reserve Bank of India (RBI) allows children above the age of 10 to independently operate their bank accounts! But how can opening a Savings Account help your children?

• Introduction to saving: By jointly opening a Savings Account with your kids, you can teach them the value of money. Earlier, it was common to gift piggy banks to kids in order to teach them the concept of saving. Now, a Savings Account can act as their new-age piggy bank, with the added protection guaranteed by the bank.
• Learning how banks operate: Another benefit of opening a Savings Account with your children is that they can safely deposit their savings and earn interest on it! This can be a great way to introduce them to the world of banking – how to compare different Savings Account interest rates, choose a bank and apply for a Savings Account.
• Teaching the power of compounding: Young minds are impressionable and eager to learn. Lessons taught to children at a young age can be absorbed easily. Thus, introducing your kids to Savings Accounts at a young age is the most practical way to teach them the concepts of investing and compounding and encourage these habits from an early age. 

Secure your child’s financial future with the Axis Bank Future Stars Savings Account. If you have an Axis Bank Savings Account or even a digital Savings Account, you can open an Axis Bank Future Stars Savings Account for your child with a minimum deposit of ₹ 3,000 (in urban areas). To open the Future Stars Savings Account all you need is your child's latest photograph, proof of identity and proof of address (of yours and your child’s). The account offers 2.50% interest on daily balances, along with a Platinum Debit Card. It also comes with a personal accident insurance cover of ₹ 2 lakh for your child. 

Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.