Bank Accounts for Children In India
RBI has said that for kids aged 10 years or more, bank accounts can now be opened and has also stated to offer ATM card and net banking facilities to the children. But as per rule, children will have to maintain balance in their account and should not withdraw the money. Till now, bank account for kids for aged 18 years in India could only be opened jointly with their parents. But now there is no such rule. Such a step by RBI looks safest and easiest to start saving for your child.
Experts says that opening bank accounts for children is a very good decision. But expressed concern over the illegitimate use of this money because these days online shopping facilities has increased and children can misuse this. So it would be parents responsibility to make their children aware of pros and cons of online shopping and how to be secure and alert when it comes to online banking.
RBI has asked parents to teach them the value of money and how saving helps in long term and keeps them financially secured.
Currently many banks in India such as SBI, HDFC, Axis and many others are offering accounts for kids but there are basic terms and conditions:
- Minimum age requirement – 18 years and older
- Parents should have savings account in that particular bank
- Average monthly balance should be minimum INR 5000. In case the balance is not maintained in any particular month then charge of INR 100 would be applied
- Free SMS alerts, monthly account statements
- Personal accident insurance coverage
But with this new announcement things are going to change. Charges for these accounts vary according to the city child lives in. For e.g. service fee is higher for a child living in metro, urban and semi-urban as compared to the ones living in rural areas. Similar is the cost transaction charge depending on the location.