Last Updated on May 24, 2023 by Sravan
Till now many people know that a bank account is only for elders i.e. who completes 18 years of age. But nowadays, Children can also open a Bank account.
Yes, you heard it right..!!
India’s Largest Public sector Bank, the State Bank of India offers two schemes for children. What is the Minimum balance to be maintained and the Maximum amount limits?
Also, what are the other advantages and benefits of these schemes?
The 2 schemes offered by SBI to children are
1. Pehla Kadam
2. Pehli Udaan
These two are Saving account schemes only.
Pehla Kadam SBI
In the Pehla Kadam scheme, Firstly your Children must be a Minor i.e. the age of your child must be below 18 years of age. Both Male and Female children are eligible to open this Savings account. It can also be opened Jointly with a parent or guardian.
Pehli Udaan SBI
In the Pehli Udaan scheme, your children must be Minors i.e. the age of your child must be below 18 years but above 10 years of age, then, you can directly open an account in your Children’s Name.
If your child is below 10 years then you select “Pehla Kadam scheme” and if they are Above 10 years of age, then, select “Pehli Udaan scheme”.
2. Minimum & Maximum Balance requirement
In these two schemes, you do not need to maintain any Minimum balances in your children’s accounts. Also, there is no Monthly Minimum average balance (MAB) to be maintained.
Whereas, you can maintain up to a Maximum of Rs.10 Lakhs each under both schemes.
3. Photo ATM-cum-Debit Card
In the Pehla Kadam scheme, you will get an ATM debit card and also your child’s photo will also be printed on that card. The Debit card will be issued in the names of both the Minor and the Guardian.
In the Pehli Udaan scheme, an ATM Debit card will be directly issued in the name of the Minor itself.
Under both schemes, the SBI-issued ATM Debit Card allows you to withdraw or to make point-of-sale transactions from POS machines only up to a maximum of Rs.5,000/-. As it is issued for Minors, don’t expect too much transaction limits.
4. Mobile Banking facility
Moreover, under both schemes, you can open this account and avail of the Mobile Banking facility. But you have to do bill payments through these two accounts, top-up recharges, and IMPS transactions for a Maximum limit of Rs.2,000/- per day .
What are the other benefits?
5. Cheque book
You can also avail Cheque books in these two schemes. For these, you need to apply it separately. You will be issued a cheque book on your request with a Maximum of 10 cheque leaves.
For all the above transactions, parental control is compulsory.
6. Fixed Deposit opening facility
Under these schemes, an Auto sweeping facility is also available, which means you can also open a Fixed Deposit (FD) through your saving account. This can be opened online.
7. Interest rate applicability
Interest rate as applicable to Savings Bank A/c calculated on a daily balance.
8. Documents required to open a Minor account
The below documents are required to open an SBI Minor account
1. Date of Birth proof of Minor i.e. Birth Certificate
2. KYC of Parent
I hope you understood the “8 things to know before opening an SBI Minor Account” concept.
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Author is a Qualified CMA with rich industry experience for more than 6 years. He is an All India Ranker (AIR-101) in CMA and also a Semi-Qualified Chartered Accountant having a quite good experience in teaching the subjects of Accounting and Costing to the commerce aspirants.