Bank Account for Children in India
Banking norms for Kid’s account:-
An account can be opened in the name of a minor (person whose age is less than 18 years) by his/her parent or guardian who is the joint holder of the account. The account that is held jointly with the parent or guardian can be operated only by this parent or the guardian and not the minor.
Two minors who are over 10 years of age can hold an account jointly.
- As mentioned above a guardian or a parent can open an account for a minor and this account can either be jointly held or can be an independent account. For an independent account the minor has to be more than 10 years of age.
- The parent/guardian can choose to get bank statements on regular basis. This will be helpful for a parent/guardian to monitor the child’s account.
- The parent/guardian also has the option to give instructions to the bank to transfer certain specified sum of money into the child’s account on a regular basis.
- Banks that provide these accounts also provide all basic facilities that a savings account has. This includes debit card, pass book and some banks even provide cheque books for minors.
- Few banks also provide additional insurance covers to the life of parent/guardian. Here a certain sum is assured to the minor on the death (under specific conditions) of the parent/guardian. There are various types of deposit schemes for minors offered by other banks.
- A minor’s account can be opened in the name of or by a person who is less than 18 years old. There are specified situations where the age is extended to 21 as per the court’s declaration. In this case the minor’s guardian will be opening the account for the minor. Banks may have specific lower limits of age for entry into this account.
- The guardian/parent should hold an account with the bank where he/she wants to open an account for the minor.
- Usage of the money from the account and minimum amount that has to be credited into the account will be as per the basic rules set by individual banks. Penalty will be charged if the guardian/parent is not able to maintain minimum balance in the minor’s account.
- Once the account holder (child/minor) turns into major depending on the bank there will be few verifications made (signature or photograph).
- Document for proof of age and address of the minor
- Document for the proof of relationship between the parent/guardian and the applicant minor
- Proof of identity of the minor
- Photographs of minor