Top 5 Kids Savings accounts
1: Kotak Mahindra My Junior Account:
Kotak bank offers a children’s savings account with the highest interest rate. ‘My Junior Account’ from Kotak Mahindra Bank offers 6% interest if the minimum balance is above 1 lakh and 5% for up to 1 lakh. This account comes with an ATM withdrawal limit of Rs.5000. The average monthly balance to be maintained under this account is Rs.5000.
Kotak bank offers a bundled account opening avenue where parents can open a savings account with them and link the same to their kids’ account for making regular systematic investments, like an RD or SIP. Child account holders at Kotak bank can also enjoy exclusive privileges while shopping for kids’ brands, edutainments and while dining out at their favourite joints.
2: HDFC Bank Kids Advantage Account:
HDFC Bank’s ‘Kids Advantage Account’ can be opened for children up to 18 years of age, if you have a savings account with HDFC Bank. This account calls for maintaining a minimum average monthly balance of Rs. 5,000. HDFC offers ATM card for children in their name, after your due approval. It comes with a cash withdrawal limit of Rs. 2,500 and a daily shopping limit of Rs. 10,000. The interest rate offered by the bank is 4%.
The bank offers a free sweep-in facility. This means that when the account balance crosses Rs.35,000, the excess amount of Rs.25,000 can be converted to a FD at attractive higher interest rates. A free education insurance coverage of Rs 1 lakh in the event of accidental death of the parent is also an add-on feature of this account.
3: Axis Bank Future Stars Savings Account:
Axis Bank offers a dedicated savings account for children called ‘Future Stars Savings Account’. This account can be opened by the guardian and the bank issues a cheque book and an ATM card for the parent if the child is below 10 years of age. The account comes with a low minimum opening deposit of Rs.2,500. The interest rate is 4%.
The ATM cash withdrawal limit of this account is Rs.1500. There is a loyalty program with reward points for account holders, for maintaining a monthly balance of Rs.25000. No average monthly balance required if a fixed deposit of Rs.25000 (for 6 months) and RD of Rs.2000 (for a year) is linked to the account. Personal accident coverage up to 2lakhs is provided if the card is swiped once in 6 months. A debit card with your child’s image is an attractive feature which your child will like.