Process to Open a Savings Account for Minors
Being a parent entails both responsibilities and rewards. While you may do your best to instill in your children strong values and the value of a solid education, there is one factor that you should not overlook: teaching children healthy financial habits.
This usually starts with the concept of saving. And setting up a Savings Account for your child while he or she is under the age of 18 is a smart first step. Like any other Savings Account, an under 18 Savings Account has a minimum balance requirement, but it also has options and restrictions that allow you, as the kid’s parent or guardian, to assist the child in developing financial management skills.
Things to understand
When it comes to opening a savings account for your children, there are a few things to bear in mind:
- Many banks provide two types of minor savings accounts: one for children under the age of ten and another for those from ten to eighteen. The account must be operated jointly with the parent or guardian in the first circumstance, but the child can handle the account alone in the second. The account will be opened jointly with a parent or guardian in any situation. The joint account holder can monitor and be notified of their child’s daily transactions, make standing instructions, set daily transaction limits, and put in place essential measures to prevent overspending.
- The child will be given a debit card with a lesser credit limit than a regular account.
- A minimum balance requirement is likely to apply to the account.
- In the majority of circumstances, parents must have a bank account in order to open a savings account for their child. This allows you to effortlessly set up standing instructions for money transfers.
- Minors can use internet banking services, but only for limited purposes and transactions. This guarantees that individuals become familiar with doing secure and responsible online purchases.
How to open a bank account for minors?
- To save for your children and teach them money management, follow the steps below:
- At the bank where the child’s Savings Account will be opened, you must have a Savings Account in your name.
- The kid must be the primary account holder, and you must be the joint account holder, on the account opening form. Along with this form, you must also send your photographs. A photograph of the minor is also required by some banks.
- As proof of age, you must produce the child’s birth certificate. The child must be under the age of eighteen. This is essential to verify your relationship with the minor as well as to prove your age.
- You must also submit your personal information, including your PAN card details.
- You may be requested to fill out a separate form with your details as the parent or guardian in this circumstance.
- You must also provide address verification for the minor to the bank.
- Finally, the bank will want your signature for future transactions.
- After all of the information has been completed and validated, the bank will open the account and provide the relevant papers. A checkbook will also be provided to you.
One of the most beneficial things you can do as a parent is to open a savings account for your children. With all of today’s technology, it is critical that they learn the value of money at a young age. You can use a savings account calculator to estimate your investment growth over time. You may guide and nurture them through the world of banking and money with you at their side as the joint account holder. It’s also crucial to keep an eye on them so that if they make a mistake, you can rectify it and instill strong financial ideals that will last a lifetime.