Savings Account for Minor: Usually, parents open their child’s savings account before they reach the age of 18 years. This is so that when the child is older, some amount of money is already accumulated for his future. Talking about the country’s largest bank SBI, there are two types of accounts ‘first step’ and ‘first flight’ available for minor children (minor).
The first step is that the account can be opened for children of any age. It is opened in a joint with a parent or guardian. On the other hand, the first flight is opened on a single basis for children above 10 years of age. First step The account can be operated jointly with the parent / guardian or by the parent / guardian individually. At the same time, the first flight account can be operated singly.
SBI Rate of interest
The interest rate of regular savings account is applicable on both these accounts. Currently, the annual interest rate on savings accounts with a balance up to Rs 1 lakh in SBI is 2.70 percent. At the same time, in case of savings account with a balance of more than Rs 1 lakh, the annual interest rate is 2.70 per cent on the amount up to 1 lakh and 2.70 per cent for the balance above 1 lakh.
Common features of both savings accounts
- Both accounts are exempted from keeping the minimum monthly balance.
- The maximum balance limit for both accounts is Rs 10 lakh.
- Accounts can be transferred to any branch of SBI without changing the account number.
- Checkbook facility: A specially designed personalized checkbook (with 10 checks) will be issued to the guardian in the name of the minor.
- Photo ATM Low Debit Card: The first step will be issued in the name of the minor and guardian in the account. At the same time, the card will be issued in the name of the minor in the first flight account.
- Withdrawal / PoS limit from ATM card is Rs 5000.
- Auto Swipe In facility at a balance above Rs. 20,000
- Nomination facility, free passbook
- The inter core charge is zero for transfer transactions.
- Feature of Smart Scholar (Market Linked): Smart Scholar is a child plan offered by SBI Life with benefits of inbuilt premium rebate and loyalty additions.
SBI Bank Mobile banking
First step: Account viewing rights and limited transactions like bill payment, with top uprights. Daily transaction limit from mobile banking is Rs 2000
First Flight: With account viewing rights and limited transactions like bill payment, top-up, IMPS rights. Daily transaction limit from mobile banking is Rs 2000
Overdraft and accident insurance
First step: Overdraft facility is available on fixed deposits for the parents / guardian of the minor under the account. But the terms and conditions apply for this. Overdraft facility is not available under first flight account. First step Personal accident insurance cover is available to parents / guardians in case of account. This cover is offered by SBI General.
SBI Internet banking
In both the first step and first flight, bank accounts have been given the rights to inquiries and limited transactions under Internet banking. Like- Bill Paytan; Opening of e-Term Deposit (e-TDR) / e-Special Term Deposit (e-STDR) / e-Recurring Deposit (e-RD), Inter Bank Funds Transfer (NEFT only), and issue of demand draft. The daily transaction limit from internet banking is 5000 rupees.
KYC for SBI Account
In case of accounts of both the first step and the first flight, the proof of the minor’s date of birth for KYC + KYC of parents, Aadhaar and PAN or Form 60 will be taken. If the applicant has not received the Aadhaar number, the applicant will submit proof of application for nomination for the Aadhaar number. In cases where PAN is not submitted, a certified copy of one valid document (OVD) along with Form 60 is required. In cases where the applicant is not a resident Indian or is a resident of the states of Jammu and Kashmir, Assam or Meghalaya and has not submitted the PAN, he / she should produce a certified copy of an officially valid document containing his identity and address details and a latest photograph.
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