A bank account for minors is a great way to introduce financial discipline at an early age. Designed specifically for individuals under 18 years of age, these accounts come with features like zero-balance requirements, personalized debit cards, and parental controls to ensure secure and responsible financial management.
Minors aged 10 and above may even operate their accounts independently, promoting financial independence under supervision. These best bank accounts for minors offer attractive interest rates and tools for financial literacy, making them an educational resource for young minds.
Table of contents
- What is a Bank Account for Minors?
- Best Bank Accounts for Minors in 2025
- Key Features of the Best Bank Accounts for Minors
- Why Do Minors Need a Bank Account?
- Interest Rates on Best Saving Accounts for Minors
- Benefits of Choosing a Right Bank Account for Minors
- Age Rules for Opening Minor Bank Accounts
- How to Open a Bank Account for Minors?
- FAQs on Best Bank Account for Minors
What is a Bank Account for Minors?
A Bank Account for Minors is a type of account specifically designed for individuals below 18 years of age. The account for minors is typically operated by a parent or guardian on behalf of the minor, though older minors (e.g., 10–18 years) are often allowed limited independent access under certain conditions.
Check out the following basic features of a bank account for minors in the table shown below:
| Feature | Details |
| Maximum Savings Limit | Varies by bank; often ranges from INR 50,000 to INR 1,00,000 annually. |
| Minimum Balance Requirements | Many accounts have zero balance requirements; some require INR 500 to INR 1,000. |
| Eligibility | Any individual under 18 years of age. For independent operation, usually 10–18 years. |
| Documents Required | – Birth Certificate or School ID of the minor. – Parent/Guardian’s KYC documents (Aadhaar, PAN, etc.). |
| How to Open | – Visit the nearest bank branch or apply online (if available). – Submit the filled application form with the required documents. – Deposit the initial amount, if applicable. |
Best Bank Accounts for Minors in 2025
Setting up a bank account for minors is simple and requires minimal documentation. There are various accounts available for minors to open which not only provide various financial benefits but are also easy to operate. A few of the best bank accounts for minors are listed below along with their key features and basic eligibility criteria:
| Bank Name | Bank Account for Minors | Eligibility | Key Features |
| IndusInd Bank | Indus Young Saver Savings Account | Minors above 12 (independent); below 12 (guardian-operated) | IndusInd Bank Minor Account offers personalized Gold Debit Card, chequebook, and recurring deposit to waive balance requirements. |
| Axis Bank | Future Stars Savings Account | Minors aged 10+ | Visa Platinum Debit Card with optional personalized design, INR 2 lakh accident insurance. |
| HDFC Bank | Kid’s Advantage Account | Minors up to 18 | Requires a parent’s HDFC account, encourages saving habits, and offers attractive benefits. |
| ICICI Bank | Young Stars Account | Minors below 18 | Guardian-operated, aims to instil saving habits in children. |
| IDBI Bank | Power Kidz Account | Minors (jointly with parent) | Tailored for children, promoting financial empowerment. |
| Kotak Mahindra Bank | Junior Account | Minors below 18 | The savings-centric account focuses on financial literacy. |
| State Bank of India | Pehla Kadam and Pehli Udaan | Pehla Kadam: Joint with parent; Pehli Udaan: Minors aged 10+ | Debit card, zero balance, and financial literacy programs. |
Also Read: This blog is a comprehensive guide on How to Apply for Education Loan Refinance. Know the Details Here!
Key Features of the Best Bank Accounts for Minors
The best bank accounts for minors are designed to meet the specific needs of young account holders while ensuring ease of use, safety, and financial education. Here are the factors that make a bank account ideal for minors-
- Zero or low minimum balance requirements.
- Competitive interest rates for faster savings growth.
- Parental controls to monitor and manage transactions.
- Personalized debit card with spending limits for controlled independence.
- Financial literacy tools or programs for educational benefits.
- Secure online access and fraud prevention measures.
- Flexibility for minors aged 10+ to operate accounts independently.
- Options for linked investments like recurring deposits.
- Free insurance coverage or added perks for account holders.
- Reward programs or discounts tailored for minors.
Why Do Minors Need a Bank Account?
A bank account for minors helps them learn financial responsibility early. It teaches budgeting, saving, and tracking expenses. Additionally, these accounts are designed to protect minors from overspending or financial misuse. For students, a bank account enables secure money storage and easy access during emergencies or daily needs.
- With the growing importance of financial literacy, having a bank account from a young age builds a foundation for better money management in adulthood.
- Parents can use these best student bank accounts for their children to provide allowances, pay tuition, or fund extracurricular activities.
- Many banks also offer additional tools like parental controls, making it easier to monitor and guide children’s spending habits.
Interest Rates on Best Saving Accounts for Minors
The interest rates on bank accounts for minors are generally competitive, often aligning with regular savings account rates. Many banks offer rates ranging from 2.70% to 3.50% per annum for balances up to INR 1 lakh.
Some banks provide higher rates as an incentive to encourage savings among young account holders. Here’s a general overview of interest rates of the best bank accounts for minors:
| Bank Name | Interest Rate (up to INR 1 lakh per annum) |
| Kotak Mahindra Bank | 3.50% |
| SBI Bank | 2.70% |
| HDFC Bank | 3.00% |
| Axis Bank | 3.00% |
| ICICI Bank | 3.00% |
| IndusInd Bank | 3.50% |
| IDBI Bank | 2.90% |
Note: Interest rates are subject to change and may vary as per recent changes.
Also Read: Check some of the FAQs about international bank accounts for students studying abroad. Know all about it in this blog.
Benefits of Choosing a Right Bank Account for Minors
Whether saving pocket money, receiving allowances, or learning to budget, a minor’s bank account provides the perfect platform for children to build a strong financial foundation.
Opening a bank account for minors has several advantages which enhance as we select the right bank account. A few of the benefits are:
- Teaches financial discipline.
- Encourages saving with attractive interest rates.
- Secure storage for allowances and monetary gifts.
- Allows parents to monitor spending habits.
- Provides tools like budgeting apps and debit cards.
- Helps students transition into adulthood with better money management skills. Investing in a minor’s account prepares them for financial independence.
Age Rules for Opening Minor Bank Accounts
As per RBI guidelines, children aged 10 to 18 years can open a minor bank account. These accounts are typically operated jointly with a parent or guardian. Minors get access to debit cards, online banking, and independent operations from 10 years onwards.
Upon turning 18, these accounts are converted into regular savings accounts, where you can save up to INR 1 lakhs. It’s crucial to understand age-specific benefits and restrictions to maximize the account’s utility.
How to Open a Bank Account for Minors?
Any child with the help of their parents can open a bank account quickly. Many banks offer special accounts designed for minors, often requiring a parent or guardian to co-sign. To know how to open a Bank Account for Minors, follow this step-by-step process:
- Step 1: Ensure Parents Have a Savings Account in the bank
- Step 2: Obtain and fill out the account opening form from the bank or download it online. Fill in the minor’s details as the first account holder and your details as the joint holder. Submit passport-sized photographs of both you and the minor (if required).
- Step 3: Submit required documents. Provide the child’s birth certificate to establish age (below 18 years) and the relationship with the minor. Submit your KYC documents, including: PAN card for identification and Address proof for both you and the minor (if applicable).
- Step 4: Complete additional formalities. Fill out any additional forms required for your information as the parent/guardian. Provide your signature for future transactions.
- Step 5: The bank will verify all documents and information provided. Once verified, the minor’s Savings Account will be created.
- Step 6: The bank will hand over account-related documents, including the passbook and cheque book (if applicable).
- Step 7: Start using the account. Deposit the initial amount, if required, and encourage your child to develop a habit of saving with the account.
Opening a bank account for minors is a significant step towards fostering financial responsibility for your loved ones. By choosing the right account and actively engaging in their financial education, you can equip your child with the skills they need for a secure financial future.
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FAQs on Best Bank Account for Minors
A minor’s bank account is a savings account designed specifically for individuals under 18 years old. It helps children and teenagers manage money, learn saving habits, and understand financial responsibility.
As per RBI guidelines, a child between 10 years and 18 years of age can open a minor’s bank account.
Banks like SBI, HDFC, Axis, ICICI, and Kotak Mahindra provide excellent accounts for minors with features like zero balance, personalized debit cards, and financial literacy tools.
Yes, UPI (Unified Payments Interface) can be used with some minor accounts, depending on the bank’s policies. Typically, minors aged 10 and above who operate their accounts independently are eligible for UPI access. However, not all banks enable this feature for minor accounts, so it’s important to confirm with your bank.
One can consider various factors like interest rates, zero balance options, parental controls, value-added features (debit cards, financial literacy tools), and accessibility of online and mobile banking services when opening a bank account for minors.
Benefits include:
– Learning money management skills early.
– Earning interest on savings.
– Controlled spending with debit card limits.
– Easy monitoring by parents or guardians.
The best bank for kids’ savings accounts depends on features like interest rates and fees. SBI Pehla Kadam and Pehli Udaan offer zero-balance accounts and personalized services. HDFC Kids Advantage Account includes insurance and free debit cards. ICICI Young Stars Account provides recurring deposits and personalized debit cards.
Yes, many banks allow joint accounts for minors and guardians, such as SBI’s Pehla Kadam or ICICI’s Young Stars account.
Most banks do not charge a fee for opening a minor’s account. However, some may have fees for additional services like a personalized debit card for students.
Interest rates for minor accounts may range between 2.70% and 3.50%, depending on the bank. Many banks provide attractive interest rates on savings accounts for minors.
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