How We Work
- Learn what a minor’s savings account is
- Know how a minor’s savings account works
- Find out how to open a minor’s savings account
On IndusInd's secure website
Chahat Awasthi,Aashika Jain
Contributor,Editor
Editorial Note: This content has been independently collected by the Forbes Advisor team and is offered on a non-advised basis. This content is not part of the comparison service provided by RunPath Regulatory Services. Forbes Advisor may earn a commission on sales made from partner links on this page, but that doesn’t affect our editors’ opinions or evaluations.
Savings accounts for minors are instrumental in teaching them the value of saving, earning interest and managing their money prudently. As parents or guardians, it’s important to pick the right account for the minor. This requires familiarizing yourself with what’s available in the market and what works best for your and your child’s needs.
Some of the important things to keep in mind while picking your savings account are the age of the minor, how you want them to operate the account and why you want them to have a savings account.
Savings accounts for minors teach them the value of saving, earning interest & managing their money prudently. Know all about the top accounts for minors.
More information on the top minor savings accounts in India is provided below.
Featured Partners
1
IndusInd Bank Savings Account
Interest Rates on Savings Account
Up to 6.75*% p.a
Fixed Deposit Interest Rates
7.99*% p.a (with sweep in/sweep out
Rewards
Discounts and Offers on top brands*
On IndusInd’s secure website
2
IDFC Saving Bank Account
Interest rates
Up to 7.25% p.a*
Features
Zero Charges on all Savings Account Services, IMPS, Debit Card, SMS Alerts & more
Benefits
Free and unlimited withdrawals
On IDFC’s secure website
3
Yes Bank Savings Account
Interest rate:
Upto 6.25%
Balance required:
Zero
Special feature:
Earn up to 16000 Yes Bank Rewardz Points worth 4000 INR
On Yes Bank’s secure website
{{ showMobileIntroSection ? 'Read Less': 'Read More' }}
{{ showSummarySection ? hideSummaryText : showSummaryText }}
- Best Minor Savings accounts
- Kotak Mahindra Bank Junior Savings Account
- IDFC Minors Savings Account
- HDFC Bank Kids Savings Account
- ICICI Bank Young Stars Savings Account
- SBI Savings Account for Minors
- Methodology
- Summary of Best Bank Accounts for Minors
- What is a minor’s savings account?
- How does a minor’s savings account work?
- How to open a minor’s savings account?
- Bottom Line
Best Minor Savings accounts
- Kotak Mahindra Bank Junior Savings Account
- IDFC Minors Savings Account
- HDFC Bank Kids Savings Account
- ICICI Bank Young Stars Savings Account
- SBI Savings Account for Minors
FEATURED PARTNER OFFER
Kotak Mahindra Bank Junior Savings Account
4.8
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.
Eligibility
Age should be below 18 years Minor should be a resident of India, Guardian can be resident or non-resident
Minimum Monthly Average Balance
INR 5,000
Interest Rate
4%
Eligibility
Age should be below 18 years Minor should be a resident of India, Guardian can be resident or non-resident
Minimum Monthly Average Balance
INR 5,000
Interest Rate
4%
Why We Picked It
With the kid’s account in Kotak Mahindra Bank, you get a 4% interest rate on both the minor’s account as well as the guardian’s account.
The bank offers a personalised debit card, NMC waiver and zero balance benefits. Several discounts and privileges come with the account such as offers on kids’ shopping brands. The account also offers access to workshops and events for kids and an RD/SIP-based annual maintenance charge waiver.
Additionally, it’s worth noting here that the bank allows even a one-year-old child to get an account opened.
Pros & Cons
- Good interest rate
- Zero balance benefit
- Access to kids’ workshops and events
- ATM withdrawal limit of INR 5000
FEATURED PARTNER OFFER
IDFC Minors Savings Account
4.8
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.
Eligibility
The child should be up to 18 years of age, The parent or guardian should have a savings account with the bank
Minimum Monthly Average Balance
No average monthly balance requirement
Interest Rate
Up to 7%
Eligibility
The child should be up to 18 years of age, The parent or guardian should have a savings account with the bank
Minimum Monthly Average Balance
No average monthly balance requirement
Interest Rate
Up to 7%
Why We Picked It
The bank offers one of the best interest rates there is in the market. Additionally, it also does not have any average monthly balance requirements. There are unlimited ATM transactions allowed at any bank in any part of the country. Besides, there is a sweep-out facility available. The child also gets a free Visa debit card.
Pros & Cons
- High-interest rate
- No average monthly balance requirement
- Unlimited ATM transactions allowed
- Limit on daily debit card online spend
FEATURED PARTNER OFFER
HDFC Bank Kids Savings Account
4.7
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.
Eligibility
Kid’s Advantage Account can be opened for a minor (up to 18 years of age), A savings Account with HDFC Bank is required for the guardian/parent
Minimum Monthly Average Balance
INR 5,000
Interest Rate
3% (below the balance of INR 50 lakh), 3.50% (above the balance of INR 50 lakh)
Eligibility
Kid’s Advantage Account can be opened for a minor (up to 18 years of age), A savings Account with HDFC Bank is required for the guardian/parent
Minimum Monthly Average Balance
INR 5,000
Interest Rate
3% (below the balance of INR 50 lakh), 3.50% (above the balance of INR 50 lakh)
Why We Picked It
One of the biggest strengths of this account is that it offers free education insurance of INR 1,00,000, which is payable in case of a parent’s or guardian’s demise through vehicular accident by road, rail or air.
Additionally, it offers the feature of creating a passion fund which allows kids to save money, whenever they have extra, to reach their goals. It can teach them the value of money management and savings. For the girl child, the account bundles Sukanya Samriddhi Yojana, with an interest rate of 8.1%.
A debit card can be issued in your child’s name with the guardian’s permission. The bank also offers a free payable-at-par cheque book, email statements and easy online banking facilities.
Pros & Cons
- Bundled with Sukanya Samriddhi Yojana
- Free education insurance
- Easy online banking facilities
- Penalty charge between on non-maintenance of annual monthly balance
- There is a charge on hold statement
- High ECS (debit) return fees
FEATURED PARTNER OFFER
ICICI Bank Young Stars Savings Account
4.6
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.
Eligibility
Young Stars Account: All minors Smart Star Account: 10 years to 18 years
Minimum Monthly Average Balance
INR 2,500
Interest Rate
3% (below the balance of INR 50 lakh), 3.50% (above the balance of INR 50 lakh)
Eligibility
Young Stars Account: All minors Smart Star Account: 10 years to 18 years
Minimum Monthly Average Balance
INR 2,500
Interest Rate
3% (below the balance of INR 50 lakh), 3.50% (above the balance of INR 50 lakh)
Why We Picked It
The account enables parents to create a savings account that facilitates easy planning of children’s financial needs. Parents only need INR 2400 to start a minor’s account with ICICI Bank.
With the account, you get a complimentary debit card, a standing instruction feature to transfer cash from the guardian’s account and a daily spending limit that ranges from INR 1,000 to INR 5,000. The bank also offers free monthly statements and passbook facility for customers. Cheque book charges are nil at for 25 payable-at-par cheque leaves in a year. Additionally, charges for multi-city cheque payments are also nil.
Pros & Cons
- Money multiplier facility
- Free Titanium debit card
- Personalized cheque book
- INR 100 penalty fee for non-maintenance of monthly balance
- Not all money transactions are free
FEATURED PARTNER OFFER
SBI Savings Account for Minors
4.5
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.
Eligibility
PehlaKadam: A minor can have this account. This account has to be jointly opened with the parent or guardian. PehliUdaan: Minors over the age of 10 years and who can sign uniformly. This account has to be opened in the sole name of the minor.
Minimum Monthly Average Balance
No average monthly balance requirement
Interest Rate
2.70% (balance less than INR 10 crore), 3% (for a balance of more than INR 10 crore)
Eligibility
PehlaKadam: A minor can have this account. This account has to be jointly opened with the parent or guardian. PehliUdaan: Minors over the age of 10 years and who can sign uniformly. This account has to be opened in the sole name of the minor.
Minimum Monthly Average Balance
No average monthly balance requirement
Interest Rate
2.70% (balance less than INR 10 crore), 3% (for a balance of more than INR 10 crore)
Why We Picked It
After IDFC, this is another account which does not have a minimum average monthly balance requirement. It’s a fully loaded account with several banking features such as internet and mobile banking. You can also receive a personalised cheque book issued to the guardian in the name of the minor in PehlaKadam and issued to the minor in PehliUdaan. Auto-sweep facility with a minimum threshold of INR 20,000 is also available.
The leading public sector bank has enabled easy account opening procedures with the Yono app. You can also open an account with SBI by visiting the closest branch.
Pros & Cons
- No average monthly balance
- Fully loaded with features
- Easy account opening process
- Lower interest rates than some other banks
Methodology
We looked at about 12 top-rated minors’ savings accounts available in the country and ranked them based on low fees, high-interest rates, benefits, AMB requirements, and ease of operations. Another important parameter used in the matrix is customer experience. Additionally, we looked at the bank’s standing among its peers and the exclusive or special features it offers its customers. This helped us narrow down the list to the top five.
The list is not exhaustive but we have attempted to provide a comprehensive outlook on the top picks, which doesn’t rely on one sole parameter but an ecosystem of trust, ease of use, special features, minimum monthly average balance requirements, interest rates and so on.
Summary of Best Bank Accounts for Minors
| Savings Account | Company – Logo | Forbes Advisor Rating | Forbes Advisor Rating | Eligibility | Minimum Monthly Average Balance | Interest Rate | Learn More CTA text | Learn more CTA below text | LEARN MORE |
|---|---|---|---|---|---|---|---|---|---|
| Kotak Mahindra Bank junior savings account |  | 4.8 |  | Age should be below 18 years Minor should be a resident of India Guardian can be resident or NR | INR 5,000 | 4% | View More | ||
| IDFC minors savings account |  | 4.8 | | The child should be up to 18 years of age The parent or guardian should have a savings account with the bank | No average monthly balance requirement | Up to 7% | View More | ||
| HDFC Bank Kids savings account |  | 4.7 |  | Kids Advantage Account can be opened for a minor (up to 18 years of age) A savings Account with HDFC Bank is required for the guardian/parent. | INR 5,000 | 3% (below balance of INR 50 lacs) 3.50% (above the balance of INR 50 lacs) | View More | ||
| ICICI Bank Young Stars savings account |  | 4.6 | | Young Stars Account: All minors Smart Star Account: 10 years to 18 years | INR 2,500 | 3% (below the balance of INR 50 lacs) 3.50% (above the balance of INR 50 lacs) | View More | ||
| SBI savings account for minors |  | 4.5 | | PehlaKadam: A minor can have this account. This account has to be jointly opened with the parent or guardian. PehliUdaan: Minors over the age of 10 years and who can sign. | No average monthly balance requirement | 2.70% (balance less than INR 10 cr) 3% (for a balance of more than INR 10 cr) | View More |
What is a minor’s savings account?
Savings accounts available to children under the age of 18 are called minors’ savings accounts. These are instrumental in teaching kids the value of saving and saving early while earning interest in the process. Opening these accounts for minors can prove to be a good way to make them familiar with banking processes such as online banking, debit card use and so on.
How does a minor’s savings account work?
Two main types of savings accounts can be found in most banks. One is for children below the age of 10 and the other is for minors aged 10-18 years. While the former has to be jointly operated with a minor, the latter, in some cases, can be operated solely by the child.
Once the child turns 18, he has to do simple paperwork to turn his savings account into a regular savings account. The parents cease to operate the account in that scenario.
How to open a minor’s savings account?
Once you pick the right bank account, you can start gathering the necessary documents. Most banks use the following documents to open a minor’s savings account either in person or online:
- Address proof such as passport, Aadhar card, driving licence, utility bill, bank passbook, bank statement and voter’s ID
- Identity proof which includes driving licence, Aadhar card, passport and voter’s ID
- Birth certificate or Aadhar card as proof of age
- PAN card, passport or driver’s licence as signature proof
- PAN card/Form 60
Usually, banks ask for original documents as well as self-attested copies for submission.
These are the steps required to open an account:
Step 1: Visit the bank or the bank’s website to start the process.
Step 2: If you choose the online process, an executive is assigned to guide you throughout the process, if you visit the bank in person, a bank executive will help you with the same.
Step 2: Fill in the application form.
Step 4: Submit documents. Some banks check for CIBIL scores.
Step 5: Some banks might ask for the first deposit, a small sum paid either in cash or by cheque
Some banks offer a zero-balance savings account.
Featured Partners
1
IndusInd Bank Savings Account
Interest Rates on Savings Account
Up to 6.75*% p.a
Fixed Deposit Interest Rates
7.99*% p.a (with sweep in/sweep out
Rewards
Discounts and Offers on top brands*
On IndusInd’s secure website
2
IDFC Saving Bank Account
Interest rates
Up to 7.25% p.a*
Features
Zero Charges on all Savings Account Services, IMPS, Debit Card, SMS Alerts & more
Benefits
Free and unlimited withdrawals
On IDFC’s secure website
3
Yes Bank Savings Account
Interest rate:
Upto 6.25%
Balance required:
Zero
Special feature:
Earn up to 16000 Yes Bank Rewardz Points worth 4000 INR
On Yes Bank’s secure website
Bottom Line
There are several savings account options for minors in the country. Some of them provide easy upgradation opportunities. Some also allow the setting up of savings goals, helping children learn money management skills at a young age. Most accounts also offer interest on the balance amount. This keeps them lucrative.
Forbes Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners.
{{ showReadFullArticleContent ? 'Hide the article': 'Read the full article'}}
Which is the best savings account for minors?
There is no one-size-fits-all approach here. It’s recommended that parents or guardians study features and other bank offerings before selecting the account that fits their needs the best.
What are the benefits of opening a savings account for minors?
The child learns the value of savings, the concept of interest rates and the management of money at a young age by operating a savings account.
Can a one-year-old have a savings bank account?
Yes, some banks like Kotak Mahindra offer this facility. These accounts need to be jointly operated with parents or guardians till the child becomes an adult (18-year-old)
The Forbes Advisor editorial team is independent and objective. To help support our reporting work, and to continue our ability to provide this content for free to our readers, we receive payment from the companies that advertise on the Forbes Advisor site. This comes from two main sources.
First, we provide paid placements to advertisers to present their offers. The payments we receive for those placements affects how and where advertisers’ offers appear on the site. This site does not include all companies or products available within the market.
Second, we also include links to our advertisers’ offers in some of our articles. These “affiliate links” may generate income for our site when you click on them. The compensation we receive from advertisers does not influence the listings or commentary our editorial team provides in our articles or other impact any of the editorial content on Forbes Advisor.
While we work hard to provide accurate and up to date information that we think you will find relevant, Forbes Advisor does not and cannot guarantee that any information provided is complete and makes no representations or warranties in connection thereto, nor to the accuracy or applicability thereof.
