Planning your child’s financial future starts earlier than you think. One of the best ways to begin is by opening a savings account in their name. Whether your child is a newborn or a teenager, several Indian banks offer dedicated minor savings accounts that not only keep their money safe but also earn interest.
In this guide, we’ll walk you through everything you need to know about opening a savings account for your child in India, from eligibility criteria to the best options available in 2026.
Why Open a Savings Account for Your Child?
1. Teaches Financial Discipline
When kids have their own account, they naturally start understanding money better. It’s hands-on learning that no textbook can match.
2. Earns Interest
Money sitting at home doesn’t grow. Put it in a savings account and it earns interest—small but steady.
3. Safety and Security
Bank deposits are insured up to ₹5 lakh per depositor per bank through DICGC. Your child’s money is protected.
4. Builds Financial History
Having an active bank account early creates a financial footprint. Later when they need loans, this history helps.
Types of Minor Savings Accounts in India
- Self-Operated Account: For kids aged 10-18. They can operate it themselves but with withdrawal limits.
- Jointly Operated Account: For kids below 10. Parent and child operate it together.
- Guardian-Operated Account: Guardian handles everything until child turns 18.
Eligibility Criteria
- Age: 0 to 18 years (varies by bank)
- Child must be a resident Indian
- Guardian needs ID proof, address proof, and photos
Top Savings Accounts for Children in India
1. Bank of Baroda bob Champ Account
Good for: Parents who don’t want to maintain any minimum balance
- Interest Rate: 2.50% p.a. (up to ₹1 lakh)
- Minimum Balance: None
- Maximum Balance: ₹1 lakh for age 10-14, no ceiling for older
- Debit Card: Theme-based RuPay card
- Key Features: No minimum balance, free school fee payments, 1 DD free per month
- Apply Now
2. Ujjivan Small Finance Bank Minor Savings Account
Good for: Those who want higher rates on bigger balances
- Interest Rate: Up to 7.25% p.a. (tiered)
- Up to ₹1 lakh: 2.50%
- Above ₹1 lakh to ₹5 lakhs: 3.00%
- Above ₹5 lakhs to ₹10 lakhs: 6.00%
- Above ₹10 lakh: Up to 7.25%
- Minimum Balance: None
- Key Features: No minimum balance charges, free quarterly statements
- Apply Now
3. Utkarsh Small Finance Bank Gen-Nex Savings Account
Good for: Those who can maintain some balance and want the highest rates
- Interest Rate: Up to 8.25% p.a.
- Up to ₹1 lakh: 3.00%
- Above ₹1 lakh: Goes up to 8.25% at higher balances
- Minimum Balance: ₹2,500 (metro), ₹750 (rural)
- Key Features: Auto-transfer to minor’s account, unlimited ATM transactions at own bank ATMs
- Apply Now
4. Axis Bank Future Stars Savings Account
Good for: Parents who want insurance cover included
- Interest Rate: 2.50% p.a.
- Minimum Balance: ₹2,500 (metro), ₹1,000 (rural)
- Debit Card: Visa Platinum with ₹2 lakh personal accident insurance
- Key Features: Personal accident cover worth ₹2 lakh, can personalize debit card with child’s photo (above 10 years), daily ATM/POS limit ₹1,500
- Apply Now
5. HDFC Bank Kids Advantage Account
Good for: Parents who want education insurance
- Interest Rate: 2.50% p.a.
- Minimum Balance: ₹2,500 (metro), ₹1,000 (others)
- Key Features: Free education insurance cover of ₹1 lakh, auto-sweep to Fixed Deposit for excess balance, My Passion Fund option
- Apply: Through HDFC Bank branch or net banking
6. Kotak Mahindra Junior Account
Good for: Parents who want rewards and perks
- Interest Rate: 2.50% p.a.
- Minimum Balance: As per variant (₹10,000 for Edge)
- Key Features: Personalized debit card, discounts on dining and shopping, daily ATM/POS limit ₹5,000
- Apply Now
7. ICICI Bank Young Stars / Smart Star Account
Good for: Parents who want flexible withdrawal options
- Interest Rate: 2.50% p.a.
- Minimum Balance: ₹2,500 (metro), ₹1,000 (others)
- Key Features: Choice of ₹2,500 or ₹5,000 daily withdrawal limit, money multiplier facility, standing instructions for automatic transfers
- Apply: Through ICICI Bank branch or online
8. Standard Chartered Prodigy Account
Good for: Those who want welcome benefits
- Interest Rate: Regular savings rate
- Minimum Balance: ₹10,000
- Key Features: Welcome benefits worth ₹3,499 from brands like Hamleys, Zomato, Uber, 2 reward points per ₹100 spent, 10x rewards on child’s birthday
- Apply Now
9. SBI PehliUdaan
Good for: Simple, no-frills account
- Interest Rate: 2.50% p.a.
- Minimum Balance: None
- Key Features: No minimum balance, personalized chequebook, mobile banking
- Apply: Through SBI branch
Comparison Table
| Bank | Interest Rate | Min Balance | Good For |
|---|---|---|---|
| Bank of Baroda | 2.50% | None | Zero balance |
| Ujjivan SFB | Up to 7.25% | None | Higher balances |
| Utkarsh SFB | Up to 8.25% | ₹750-2,500 | Best rates |
| Axis Bank | 2.50% | ₹1,000-2,500 | Insurance cover |
| HDFC Bank | 2.50% | ₹1,000-2,500 | Education insurance |
| Kotak Mahindra | 2.50% | ₹10,000 | Rewards |
| ICICI Bank | 2.50% | ₹1,000-2,500 | Flexible limits |
| Standard Chartered | Regular | ₹10,000 | Bonus offers |
| SBI | 2.50% | None | No-frills |
Documents Needed
- Child’s birth certificate
- Child’s passport (if available)
- Guardian’s ID proof (Aadhaar, PAN, Voter ID)
- Guardian’s address proof
- Passport-sized photos of child and guardian
- Form 60 (if PAN not available)
How to Open Online
- Visit bank website or app
- Select Savings Account > Minor Account
- Fill in details
- Upload documents
- Schedule branch visit for verification
- Activate after verification
Important Rules
- Withdrawal Limits: Kids below 10 need guardian involvement. Older kids have daily limits between ₹1,500-₹5,000.
- Maximum Balance: Some banks cap it at ₹1 lakh for ages 10-14.
- Interest: Calculated daily, credited quarterly.
- Conversion: When child turns 18, convert to regular account with fresh KYC.
- Tax: Interest above ₹10,000/year is taxable. Guardian includes it in their return if child has no other income.
Tips to Maximize Savings
- Start Early: Even small monthly deposits grow big over 15-18 years thanks to compounding.
- Set Up Auto-Transfer: Automate monthly transfers so you don’t forget.
- Use Auto-Sweep: Transfer excess to FDs for better returns.
- Add a Recurring Deposit: Teaches discipline while earning more interest.
- Involve Your Child: Let them track the account once they’re old enough. Explain interest. Set goals together.
Conclusion
Opening a savings account for your child is a small step that teaches big lessons. Whether you want zero-balance simplicity or maximum interest, there’s an option for every need. The key is starting—even with small amounts.
Disclaimer: Rates are as of May 2026 and may change. Verify with banks before applying. Consult a financial advisor for personalized advice.
