Plan your child future with the Kids Saving Account

Not many people grow up learning about how to operate a bank account. The different terms, the bank’s rules, and regulations can all get very confusing for people who have not been exposed to a bank in their childhood. When it comes to financial literacy, the earlier these concepts are made clear to a child, the faster they adapt and learn them. To inculcate an understanding of banking accounts, many banks have a Kids Saving Account that the child can operate.

A Kid’s Savings Account is a type of account a child can operate independently. A child is anyone below the age of 18 years. Some banks allow children to jointly operate a bank account with their parents till the age of 10 years; from 10 years to 18 years, the child can operate the Savings Account by themselves. The Kid’s Saving Account has all the features of a Regular Savings Account. An ATM cum Debit Card is provided to the child with daily withdrawal limits. The child is also allowed to spend a certain amount of money at merchant locations.

However, the Kid’s Saving Account requires linking to the parent’s account. This is to ensure some balance in the Kid’s Savings Account. In case of a shortfall, the money is transferable from the parent’s account to the child’s.

• Standard Features: The Kid’s Savings Account offers features similar to a Regular Savings Account, including passbook access, email statements, and branch balance inquiries.
  
  

• Account Conversion: The account becomes inactive when the child turns 18 and must be converted into a Regular Savings Account, adhering to the respective rules.
  
  

• Financial Education: Managing their own account and Debit Card helps children understand banking terms and account management, fostering valuable financial literacy.
  
  

• Money Management: Children learn the concept of limited funds by making withdrawals and managing expenses, which instills the importance of budgeting and financial planning.
  
  

• Future Planning: As they grow, the skills and knowledge gained from operating their Kid’s Savings Account support better financial planning and management in adulthood. 

Here are the steps to open a Kids Advantage Account for your child at HDFC Bank:

• Step 1: Go to the official HDFC Bank website.
  
  

• Step 2: On the homepage, click the 'Accounts' option.
  
  

• Step 3: Under 'Savings Accounts', select the 'Kids Advantage Account.'
  
  

• Step 4: Provide the necessary details of the child and the parent/guardian.
  
  

• Step 5: Submit the required KYC documents, including the child's age proof and the parent's Aadhar and PAN card.
  
  

• Step 6: The Kid's Saving Account must be linked to the parent's account.
  
  

• Step 7: Follow the prompts to complete the account opening process
   

So, take the first step to teach financial lessons to your child. Open a Savings Account for your child today.

Looking to open another HDFC Bank Savings Account for your child today? Click here to check out our options.

Click here to open a Savings Account.

* Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.