Last Update: February 14, 2023, 13:40 IST
Savings accounts also require a minimum balance for children.
The child will also get an ATM/Debit card to access the account but the financial limit will be lower than that of a normal savings account.
Parenting involves both joys and duties. And while you may do your best to instill a sense of morality and the value of education in your kids, there’s one more thing you shouldn’t forget to teach them: proper money management.
It usually starts with the idea of saving. And one step in that direction is to open a savings account for your child while he is still a minor. A savings account for those under 18 requires the same minimum balance as traditional savings accounts. It also has options and restrictions that you, as the child’s parent or guardian, can use to help young people learn how to handle their money.
As mentioned earlier, savings accounts require a minimum balance for children as well. Additionally, there is a maximum balance in the account, after which the bank will often credit any excess amount (that exceeds a specified limit) to a fixed deposit account in the minor’s name for one year.
Along with opening the bank account, the minor will also get an ATM/Debit card to access the account. Here’s the twist, the financial limit on a card issued to a minor will be lower than that of a regular savings account. This move by the bank can ensure access to funds for the child at the same time under the guidance of the parents. Additionally, as a joint account holder of the minor, you will receive notifications of any transactions carried out by them.
Minor’s Savings Account Opening Process
For a child to open a savings account, a parent must have a savings account in his or her name.
The child must be listed as the primary account holder on the application and the parent must be listed as a joint account holder.
Along with this form, the guardian will also have to submit his photograph. Some banks also ask for a photograph of the minor.
As proof of age of the child, the parents have to produce the birth certificate. The age of the child should be less than 18 years. This is necessary to verify the relationship with the minor as well as to prove his age.
Parents also need to submit their personal information, especially their PAN card information. In this situation you may be questioned as a parent or guardian.
Parents may also have to fill another form with their details. They will also have to provide address verification for the minor to the bank.
The bank will request the parent’s signature before taking any further steps. Once everything is completed and verified, the account is created, and the bank will provide the relevant documents. A check book will also be provided to the minor.
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