Securing your child’s financial future is a priority for every parent. One way to achieve this is by introducing your child to the world of banking and saving from a young age. But can children have their own Savings Accounts? The answer is ‘Yes’.
A Zero Balance Savings Account tailored for children is available at all banks in India. This account makes banking and saving accessible and engaging for kids. It makes them financially literate and aware. Let us understand why choosing one is wise:
Eligibility criteria
Before delving into the reasons for a Zero Balance Account opening online for your child, let us first understand the eligibility criteria. While criteria may vary between banks, typically, to open an account for your child, you require:
- Child’s age: Most banks offer these accounts for children below a certain age, often up to 18 years.
- Guardian’s consent: As a parent or legal guardian, you must provide consent and be the joint holder of the account. Some banks also require you to have an account for your child to be eligible for a Kids’ Account.
- Identity proof: You may be required to furnish identity documents for both your child and you.
Why open it?
By opening a Savings Account for your child, you create an opportunity for financial education. It is a platform for them to learn the basics of money management, the concept of earning interest, and the importance of saving. These accounts empower children to manage their finances independently under their parent’s or guardian’s consent and joint holding. Encouraging children to save money in their accounts helps them develop the habit of keeping it for future needs.
How to open it?
Choosing the right bank is important when opening a Zero Balance Savings Account for your children. It will significantly shape their financial journey. Select a bank that offers the right features, benefits, and convenience. Here is how to go about it:
- Choose the right bank
Research banks offering Zero-Balance Savings Accounts for children and opt for a reputable institution with convenient online account opening options.
- Complete the online application
Follow the online application process on the bank’s website for Zero Balance Account opening, providing the necessary information and documentation, like their birth certificate, identification documents, and proof of address.
- Verification and approval
The bank will verify the submitted documents. Once approved, you will receive the account details, and your child’s Savings Account will be ready.
Conclusion
Zero Balance Savings Accounts provide a valuable platform for introducing financial education and responsibility early in life. Opening one for your child gives them the precious gift of financial literacy and independence.
