How To Open Children Savings Account?

In today's dynamic world, financial literacy is not just an asset; it's a necessity. From handling day-to-day expenses to making significant financial decisions, a solid foundation in money management is paramount. This foundation must be laid early, and what better way to introduce children to the world of finance than through a Savings Account? A Children Savings Account serves as their first personal interface with the banking system and acts as a stepping stone towards understanding the importance of saving and financial planning.

Why is a children savings account essential?

Financial acumen, much like any skill, matures with time and practice. Starting young aids in developing financial discipline. As children watch their savings grow, they appreciate the fruits of patience and perseverance. Introducing children to saving helps them understand how money grows over time, providing a sense of security for the future. Moreover, this early venture into saving teaches them responsibility.

With their funds, even though limited, they understand the value of money and the need for judicious spending. This tangible experience imparts lessons beyond textbook knowledge: budgeting, prioritising needs over wants, and making informed decisions. As they navigate this mini-financial journey, they learn to manage limited resources efficiently, setting the stage for sound financial decisions in adulthood, including owning a current account.

Features of a children aavings account

A Children Savings Account is uniquely tailored to cater to the needs and limitations of its young account holders while ensuring they get a genuine banking experience. Here are some standout features:

  • Minimum Balance Requirements: Most Children Savings Accounts have a minimum balance requirement. This condition familiarises the child with the importance of maintaining a specific amount in the account, mirroring the financial discipline they'd need as adults. Furthermore, this threshold ensures that the child always has a safety net of funds.
  • Maximum Limit and Automatic Transfer to Fixed Deposit: There's often an upper cap on the amount a Children account can hold. Once the savings surpass this limit, the excess amount is automatically transferred to a Fixed Deposit in the child's name. This mechanism safeguards the money by locking it at a higher interest rate and introduces the child to other financial instruments like Fixed Deposits.
  • ATM/Debit Card Provisions: To give children a sense of autonomy and real-world experience, they are provided with an ATM or debit card. However, the withdrawal or spending limit is considerably lower than regular accounts. This controlled access ensures they can't overspend while still learning to operate an essential banking tool.
  • Joint Account Advantages: These accounts are usually set up as joint accounts with a parent or guardian. One of the significant benefits of this arrangement is the automatic notifications parents receive about their child's transactions. It allows for gentle oversight, ensuring the child's financial safety and enabling real-time lessons about money management when necessary.

How to open a bank account for a minor with zero balance

Opening a bank account for a minor is a straightforward process but requires due diligence to ensure all the criteria and documentation are met. Here's a detailed guide to make the process smoother for parents and guardians:

1. Pre-requisites: Before initiating the process, one of the primary requirements is that the parent or guardian already has a Savings Account in the bank where they wish to open the minor's account. This existing relationship with the bank simplifies the formalities and instils trust.

2. Form Filling: Start by obtaining the account opening form from the bank. The form needs to be filled out with the minor as the primary account holder. The parent or guardian will typically be the joint account holder. Ensure all details are accurately filled in to avoid any future discrepancies.

3. Document Submissions: Several essential documents need to be submitted:

  • Photographs: Some banks require the minor's and the guardian's photographs.
  • Birth Certificate: A crucial document, the birth certificate serves as proof of age, confirming the minor is under 18.
  • PAN Card: The guardian's PAN card details are typically required. Some banks might ask for the minor's PAN if available.
  • Address Proof: A utility bill, Aadhaar card, or any other valid proof confirming the minor's residence.

4. Establishment of Parent-Child Relationship: The bank must ascertain the relationship between the child and the guardian. The birth certificate often suffices for this, but some banks might have additional forms or affidavits to be filled out.

5. Signature Requirements: The guardian must provide their signature for the account opening process. This signature will also be necessary for any future banking transactions related to the minor's account until they reach the age of maturity.

6. Concluding the Process: Once the bank verifies all the provided details and documents, they will open the account. The guardian will receive all relevant bank documents, including the account details. A cheque book will typically be issued, giving the guardian and the child a tool to start their banking journey together.

Comparing zero balance savings account & regular children savings account

As the name suggests, a Zero Balance Savings Account is an account where no minimum balance maintenance is mandated. Its most significant benefit lies in the freedom from penalties for not maintaining a specific amount in the account, making it user-friendly and low-maintenance. In contrast, a regular Children Savings Account often comes with a minimum balance requirement, with penalties applicable if not adhered to. The distinction becomes particularly crucial for minors, where consistent deposits might not be feasible. The Kotak811 offering introduces an accessible zero-balance Savings Account, which could be an attractive option for minors. This ensures that children can kickstart their financial journey without the stress of maintaining a minimum balance, thus promoting savings without pressure.


Instilling financial wisdom from an early age is of immeasurable value. Parents and guardians play a pivotal role in introducing their children to banking and savings. Modern banks like Kotak Mahindra Bank also offer dedicated accounts for minors, such as the Junior Savings Account. This account fosters the habit of saving and facilitates planning for your child's future. With personalised debit cards, exclusive offers and discounts on dining, edutainment, and shopping, access to enriching workshops and events, RD/SIP-based annual maintenance charge waivers, and even a cheque book, the Junior Savings Account provides a comprehensive financial experience for young savers.

Cultivating financial literacy and savings habits in children is an investment in their future. By initiating their financial journey early with the right tools and guidance, you equip them with essential skills for a financially secure and prosperous life. Start today to ensure a brighter tomorrow for your child.