Help your child graduate from piggy to real bank with savings account

Probably we all had our first independent savings bank accounts when we first started to work and our companies provided us with bank forms so that they could put our monthly earnings in it. Also, many of us would have held joint accounts with our parents and also occasionally visited the bank with them to carry out certain transactions. Isn’t it? That was a thing of the past. Now, children as young as a-year-old, have a savings account. The facility existed even when we were young, but the concept was not much in vogue.

Today, banks are promoting ‘child savings account’ more than ever and even parents are welcoming the idea. But getting the best deal for your baby is a tough thing to do and you need to check-out the best suitable options that would help your child’s funds grow steadily if not by leaps and bounds.

Here are a few tips that you as a parent must explore while opening a savings account for their child.

1. Security features: This should be the top priority while finalising a savings account for your child. Most accounts come with the security of zero liability. This protects the little account holder’s debit card from theft or unauthorised purchases. Additionally, opt for text alerts to your mobile number to stay updated about every transaction made on your ‘child savings account’.
2. E-banking facilities:A lot of banks offer free internet or mobile banking access apart from free email, prepaid mobile recharge, pay utility bills, stop cheque payment via SMS facilities and more. Do not forget to encash on them.
3. Additional benefits: Banks offer additional benefits like educational insurance cover, no monthly fees, free cheque book and passbooks annually, unlimited free transactions, etc. Avail all of them.
4. Freebies and rewards: Debit cards are issued to children above 10-years of age and come with a withdrawal limit of maybe Rs 1,000 and above as daily spending limit and a spending limit of Rs 8-10,000 at merchant locations. Some banks even add a personal touch to the junior account holder’s card by putting a fun image or the child’s photo embossed over it. Most banks also offer exciting rewards programmes like book vouchers, movie tickets and discount vouchers for the account holders of child savings account.

Financial experts say that it is never too early nor ever too late to have a savings account. Listen to them.  Most commercial banks, microfinance lenders, cooperative banks, some non-banking financial corporations and other new-age digital financial entities in the country offer the facility of savings account for minors.

Check out more on https://savingaccount.in/blog/kids-bank-account.