Opening a savings account for your child is one of the best gifts you can give. It secures their financial future early on and teaches money management.
With most banks now offering fully digital account openings, the process is quick and easy. You can now set up a bank account for your kid in less than 10 minutes from home without visiting a branch.
This guide will walk you through the step-by-step process of opening a minor account online, helping your child seamlessly enter the world of digital banking.
Benefits of Getting an Early Start
Starting financial planning early for your child’s future has many inherent benefits.
Some of the key advantages are:
- Financial Education: Opening a bank account provides a hands-on means to teach children the value of money, financial discipline, and responsible spending from a young age. Kids can track how their savings grow and learn how banking works.
- Higher Returns: Many banks offer special interest rates up to 7.25% p.a. on children’s savings accounts. Due to compounding benefits, the earlier you start saving, the higher the maturity value.
- Fund Safety: Putting money in a child’s savings account ensures safekeeping for needs like higher education or other requirements. Compared to physical cash, it eliminates the risks of loss or theft.
Who is Eligible, and What is Needed
The pre-requisites for opening a minor’s account are pretty essential:
Eligibility:
- The child should be below 18 years of age.
- A parent or legal guardian has to be the account operator.
Documents Required:
- Child’s ID proof: Birth certificate or Aadhaar card copy
- Details of Savings Account held by the parent
That is all you need to begin. Next, let us go step-by-step through the process flow.
Steps to Open an Account Digitally
With most leading banks now offering completely digital account opening journeys, opening accounts online is simple and quick. Follow these steps:
1. Research and Compare Banks
First, review various banks and analyse their offerings on minors’ savings accounts. Look for conveniences like a zero balance facility, no withdrawal limit, monthly interest payouts, complimentary debit card issuance, sweep-out to fixed deposits, etc.
Banks like IDFC FIRST Bank offer industry-leading 7.25% interest, many free services, unlimited ATM access, and attractive rewards.
2. Visit Bank’s Website
Next, go to the official website of your selected bank. Locate the relevant section to open a minor’s savings account. The process is very similar across most banks.
3. Fill Online Application
The application form requires you to provide the personal details of the primary guardian and the minor. Please fill out all information accurately.
4. Upload KYC Documents
Attach scanned copies of KYC documents needed, generally:
- Minor: Birth certificate/Aadhaar
- Guardian: PAN/Aadhaar for ID and address proof
Double-check for clarity of documents before upload.
5. Complete KYC Process
Initiate eKYC by providing your UID number. This instant digital KYC verification authenticates identities and completes formalities.
6. Fund Account
Lastly, transfer the applicable initial deposit amount to activate the account. Some banks offer zero-balance accounts for added flexibility, and you can create an instant quick bank account online in just a few minutes.
Useful Features to Have
While basic savings account facilities are common across banks, certain value-added features make accounts more useful:
- Monthly interest credits ensure faster compounding
- No limit on ATM withdrawals allows access whenever required
- Digital banking platform for convenient monitoring
- Auto-sweep of excess balance to fixed deposits for higher returns
So, compare and choose banks that offer the most relevant features.
Tips for Managing the Account
Once opened, adopt specific best practices to manage your child’s account effectively:
- Set monthly withdrawal limits for financial prudence
- Review account statements frequently
- Use integrated facilities like debit cards judiciously
- Increase deposits on special occasions
Following these tips will ensure the account achieves its purpose of securing your child’s future.
Conclusion
Opening an instant bank account online for minor child or ward is now easier than ever. It kickstarts their financial journey and provides a structured way to build savings for their future.
With many banks like IDFC FIRST bank offering fully digital processes, attractive interest rates, and zero-balance accounts, you must start saving for your child today. Follow the steps shared above and give your child the gift of financial security for life.
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