Minor Saving Account Opening Online & Offline Process

Saving for your child by opening a bank account for a minor online is becoming a common practice. It enables you to save for your child’s future needs and teach them financial responsibility from a young age. Many financial institutions provide this facility with exclusive features and help your children take over the account later when they turn 18. 

To get started, learn about its benefits and the process of opening a bank account for a minor. 

Factors to Consider Before Opening an Account For a Minor

The process can be empowering as it encourages you to save for your child’s future and your child can also become financially aware and disciplined. Both you and your child will be joint holders of such savings accounts. Once the child turns 18 years of age, the account may be converted from a minor’s account to a regular account. 

While this can be a rewarding experience, consider certain factors for the best experience:

• Consider ease of access and control of the account via net and mobile banking 
• Compare interest rates and see if you can get the benefit of compound interest to enhance savings 
• Know the minimum balance required and the charges in case the balance falls below this threshold 
• Check the features and services offered to you, such as a debit card for you and your child as well as savings incentives, if any

Also Read: Best Saving Accounts in India

Opening a Bank Account For Those Under 18

You can opt for opening a minor account online and offline, depending on your convenience. It is a simple procedure requiring nominal documentation. The process needs two sets of documents: one includes verification of the minor and the other of the parent.

Documents Needed For the Minor	Documents Needed For the Guardian/Parents
Birth certificatePassportSchool identity cardPhotograph Aadhaar card	Address proof (latest utility bill, electricity bill, property tax receipt)Identity proof (Aadhaar card, driving license, passport, PAN card)Photograph

After getting all the documents ready, you can proceed to open a bank account for a minor.

Online Process

Opening an account for your child digitally is both quick and convenient. Follow these steps:

Step 1: Visit the bank’s website and choose the appropriate savings account for a minor 

Step 2: Complete the application process, providing the necessary details

Step 3: Submit the digital copies of your documents

Step 4: Complete the e-verification process (this may include a video call showing your documents for authentication purposes)

Step 5: Transfer funds to the new account

Step 6: You will receive a confirmation upon successful verification

Also Read: How to Switch Bank Accounts?

Offline Process

This procedure is similar to opening a minor account online. You can follow these steps and complete the procedure with ease:

Step 1: Visit the nearest branch of your selected bank

Step 2: Ask for the application and fill it out with the necessary details

Step 3: Attach the required documents of both the child and guardian

Step 4: Pay the needed amount to activate the account

Step 5: Upon approval, you will receive all the account details and login credentials 

You can also ask the representative for internet banking access and debit cards according to your preference. 

Rules For An Account For A Minor

The Reserve Bank of India has set certain guidelines that are referred to as minor account rules. Remember them when you are thinking about opening an account for your child. 

1. A minor of any age can open a recurring bank deposit account, FD account or savings account 
2. A minor over 10 years of age can start and manage a savings account on his or her own
3. Banks can have their own policies in terms of age limit and amounts up to which minors can operate such accounts independently 
4. Once the minor is 18, the bank needs to confirm the account balance and take fresh signatures to transfer the operation and management 
5. Banks need to ensure that minor accounts are not overdrawn by adding safety checks 

Benefits of Opening Kid’s Saving Account

• Teaching kids about managing finances
• Having funds on hand for emergencies related to the child’s education or health 
• Saving for the child’s future 
• Educating kids on making investments 
• Purchasing electronics or a cycle/motorcycle for the child 
• Spending on a child’s travel, sports or other academic and non-academic activities 

Opening a bank account for a minor can be a good investment, becoming a financial bedrock to support your child’s future. To make regular expenses for your child’s education, entertainment and more, you can rely on the Fibe Axis Bank Credit Card. 

As India’s first numberless credit card, it links to your UPI ID and offers 3% cashback on eligible transactions. With it, you can save more as you spend and avoid any joining and renewal fees. What’s more, you get free domestic lounge access too! Download the Fibe App or register on our website to get this credit card today.

FAQs on Opening a Minor Savings Account

Can a guardian withdraw money from a minor bank account?

Yes, a guardian can withdraw money from a minor savings account and also set the limit.

Is the interest on a minor savings bank account taxable?

Yes, the interest gained on the balance of a savings bank account for a minor is generally taxable.

Do we get an ATM card for a minor account?

Yes, you can get an ATM card for a minor account. This also depends on the bank, so make sure you check beforehand. 

Can we transfer money to a minor account?

Yes, you can transfer money to a minor account via cash, cheque or digitally. 

Are the interest rates the same for minor bank account holders?

Interest rates can vary from bank to bank and account to account. Compare the interest rate before opening a minor savings account.