How to Open Children Savings Account?

Parenting involves nurturing both the emotional and practical aspects of a child’s growth. While instilling values and emphasising the importance of education are essential, teaching sound financial habits is equally crucial. Introducing your child to financial management early on can set the stage for responsible money habits in the future. One effective way to start is by opening a savings account for your child. This guide will walk you through the key features, benefits, and steps for setting up a savings account for minors, focusing on options like those available at HDFC Bank.

Key Features:

• Minimum Balance Requirement: Similar to standard savings accounts, a minor’s savings account requires maintaining a minimum balance. This amount varies by bank and account type.

• Maximum Limit: If the account balance exceeds a certain limit, the excess funds are typically transferred to a Fixed Deposit in the minor’s name for a one-year term. This helps in earning interest while managing higher balances securely.

• ATM/Debit Card: Minors are issued an ATM or debit card with a lower spending limit compared to regular accounts. This ensures they can access their funds without the risk of overspending.

• Transaction Notifications: As a joint account holder, you will receive notifications for any transactions made by the minor, allowing you to monitor their financial activity.

Opening a savings account for your child at HDFC Bank—or any other bank—is a straightforward process. Follow these steps to get started:

1. Existing Account Requirement: Ensure you have an existing savings account with the bank where you plan to open your child’s account. This account will often be needed for verification purposes.
   

2. Complete the Application Form: Fill out the application form, designating your child as the primary account holder and yourself as the joint holder. Both your photograph and, in some cases, your child’s photograph will need to be submitted.
   

3. Provide Age Proof: Submit your child’s birth certificate as proof of age and to establish your relationship with the minor. The child must be under 18 years of age to qualify for this account type.
   

4. Submit Identification Documents: Provide your PAN card and other relevant identification documents. This includes address proof for both yourself and your child.
   

5. Additional Forms: You may need to complete additional forms with your details as the parent or guardian.
   

6. Signature and Documentation: Sign the necessary forms and agreements. Once verified, the bank will issue account documents and a cheque book.

Opening a savings account is just the beginning. To foster good financial habits in your child:

• Discuss Financial Goals: Talk about the importance of saving and setting financial goals. Use the account as a tool to teach budgeting and planning.
  

• Monitor and Review: Regularly review account statements with your child. This provides an opportunity to discuss their spending and savings patterns.
  

• Promote Regular Deposits: Encourage your child to deposit a portion of any money they receive, such as allowances or gifts, into their savings account.
   

By opening a savings account for your child, you are not only helping them learn about money management but also giving them a head start in achieving financial independence. Explore the various options available and choose the account that best fits your child's needs to ensure a solid foundation for their financial future.