Everything you need to know about how to open savings accounts for your child

Managing finances and cultivating the habit of savings are crucial lessons that every child must learn from an early age. If you wish to teach your kid how to take care of your finance, how to save, and help grow, then you ought to be opening a zero-balance saving account for your kid. Not only does it help them understand the importance of managing their money, but also teach them how to operate and transact in the best possible manner.

How to open the account?

All banks have their websites and platforms where you can find a simple savings account form. Fill the online form and submit your application and the bank representatives will take care of the rest.

You need not wait till your kid turns 18 to open a savings account! The things required to open the account are –

• Birth Certificate of your child
• KYC documents of the parent or guardian (if the child’s age is 10 years or lesser)
• Passport size photograph of the child. However, not all banks require a photo, so you may want to check with the bank where you want to open one

It is easy to open an online savings account, and once done, and your kid can start operating the account and develop a saving and money-managing habit at a ripe early age.

Features:

If you are planning to gift one to your kid, a zero-balance saving account, then there are some features they enjoy –

1. Zero balance- No minimum balance needs to be maintained monthly. This makes it easier for the kids to operate, and the parents can also be relieved as they need not keep track of the account at the end of every month.
2. Card access- You can give your kid an ATM and debit card and make sure that they are using the cards in the right manner and diligently.
3. Withdrawal and Deposit- In case of any emergency, your child need not worry about finances when their savings account offer a free withdrawal option (limited to a few free withdrawals per month). You can also teach them about depositing cash and make it a habit to save religiously.
4. Passbook, Cheque book and Statement- Saving accounts come with free passbook and cheque book, making it easy for your kid to start investing right away. Nowadays, it is also easy to get your bank statements online, for free and quickly.
5. Online Banking- Right from the banking websites to mobile banking applications to paying bills and utilities to track bank account, you can teach your kid to do it all online, with their zero-balance saving account.

Free Insurance- Some banks might offer a free insurance cover that protects the child financially, in the event of the parents’ death. It would be beneficial for a kid to have a savings account that is protecting from the start.