Can I open kids savings account for my 1.5 yrs old ?

POSTED BY krupa1823 ON March 4, 2014 6:39 pm COMMENTS (7)

My kid is 1.5 years old, i want to open a savings account for him is it possible? when i checked with sbi they told it is not possible. i have savings & pf account in sbi

7 replies on this article “Can I open kids savings account for my 1.5 yrs old ?”

  1. ashalanshu says:

    Dear Krupa, you can open your kid’s SB account under your guardianship within SBI itself.
    Taken from SBI site.

    Minors Accounts
    Minors who can adhere to uniform signature and are not less than ten years old can open accounts in their single name and maintain therein a maximum balance of Rs. 200,000/- (Rs. Two lacs only). Minors may open joint accounts with their guardians. (Rule No. 3)

    So, in your case, it’ll be a joint account with you as guardian or your wife for your kid, as the age is less than 10Y.

    thanks

    Ashal

  2. krupa1823 says:

    thank u all. Hemanth, as Senthil said i would like to save all cash gifts recd by him for his future so i ve planned to open a savings ac in sbi. Senthil, i am having ac in sbi but not in icici. I need to ve ac in my name to open for my child right??

    Thanks,
    Krupa

  3. ashalanshu says:

    Dear Senthil, please do note, the way opted by you is correct. Only issue – the interest income from the SB account ‘ll be clubbed with your income from all other sources and ‘ll be taxable at your slab rate. In the process of financial planning, please do not open FDs for your D’ter, as it ‘ll only increase your own tax liability.

    Regarding the cash gifts to your D’ter, this may again create problem if too much money is flowing there and being cash you can not source it;s origin to satisfy the Income Tax people if they came knocking on your door.

    Thanks

    Ashal

    1. vksnathan says:

      Ashal,

      My Wife is the guardian for my kid’s account and My wife is not required to file tax return as her annual income is less than 2 lakhs.

      Cash Gifts to my daughter in a year is usually less than 1 lakh.So I don’t see a huge issue from income tax authorities.

      Krupa,

      Yes.In ICICI you need to have a account first before opening a account in the name of minor child.Please note that ICICI has a family relationship concept so I maintain all 3 accounts ( Wife,Child and My account ) with ICICI so that there is no minimum balance requirement for all the 3 accounts

      Regards,
      Senthil

  4. vksnathan says:

    ICICI Bank allows to open a savings account in the name of child with one of the parent as guardian.The account is known as ICICI Youngstar Account.I have recently opened a savings account in the name of my girl daughter ( 11 months old ).The Cheque book comes with this account by default.If you need a debit card / Atm card you need to request the bank for the child account.

    Hemanth,

    Your question was not addressed to me.Anyways I thought of answering my view point here.

    I transfer all the cash gifts for my child to the child account.I am planning to utilize this amount for my kids education.

    I have some plans of introducing some financial knowledge to my kid ( at a later point ) by giving a small amount of pocket money and credit some part of the money to the account towards her education.

    Opening of the savings acct is one the major steps towards financial planning for my kids future needs.

    Regards,
    Senthil

  5. Hemanth Chandra says:

    Hi Krupa,

    Just out of curiousness I am asking this question…. Why do you want to open a bank account for a child of 1.5 year old…. Do you have any purpose or benefit that you get by opening a savings account for a kid of 1.5 year old. ??

    Forgive me if I ask something wrong.

    Regards,
    Hemanth.

  6. ashalanshu says:

    Dear Krupa, you as a guardian can open a SB account for your kid.

    Thanks

    Ashal

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