Best Savings Account for Kids

Best Savings Account for Kids


Many banks and credit unions have special kids savings accounts that allow your small child or teen to “graduate” from their bedroom piggy bank. Learn how to save and operate a kids bank account with the best savings account. Whether you want to help your child construct a savings account or your child needs to save money from an allowance or a part-time job, we have the best savings account for kids. A youth’s best savings account for kids allows them to earn money while also learning about banking and developing a savings habit.

When selecting a kids savings account, keep the interest rate in mind.  You have to think about fees or minimum balance criteria for kids savings accounts, how you and your children can access the funds, and how the account can grow as they age. We have done the legwork for you, compiling an expert list that makes selecting a winning account based on you and your child’s top priorities simple.

10 Best Savings Account for Kids

The following is a list of the best savings account for kids in India, along with their features and advantages:

Name Of Kids Savings Account Interest Rate of Best Savings Account For Kids Minimum Average Balance
HDFC Bank Kids Advantage Account 3% – 3.50% Rs. 5,000
ICICI Bank – Young Stars & Smart Star Account 3.00% – 3.50% Rs. 2,500
My Junior Account by Kotak Mahindra Bank 3.50% Rs. 5,000
Future Stars Savings Account by Axis Bank 4% Rs. 2,500
Power Kids account by IDBI Bank


4% zero balance accounts
SBI- PehlaKadam PehliUdaan 2.70% zero balance accounts
CitiBank Junior Account


2.50% No minimum balance required
Karur Vysya Bank Jumbo Kids Savings Account


4% Rs. 1,000
HSBC Premier Junior Account


2.00% – 2.50% Rs. 500
United Bank kids Savings Account


3% Rs. 500

1. HDFC Bank Kids Advantage Account

Children under the age of 18 are prevalent with an ATM or debit card (that can be used globally) in this account. The child’s and guardian’s names will be printed on the debit card. The youngster has a daily withdrawal limit of 2500 dollars from the ATM and a daily shopping limit of 100,000 dollars.

Your child can obtain a personalized checkbook and free cash withdrawals from other ATMs with HDFC Bank’s best savings account for kids. As a parent, you can register for free email alerts about your child’s debit or checkbook transactions, and keep a passbook to log all of the account’s transactions. This account also includes net banking and phone banking, as well as regular updates on your child’s account.

Features and Details of HDFC Bank Kids Advantage Account

Features Details
Opening Balance Minimum Rs. 1000
Minimum Average Balance Rs. 5000
Standing instruction facility Mandatory (Minimum Rs 1000 per year)
Money maximiser facility Free facility (If the amount in the kid’s account reaches more than 25000, it automatically turns into FD for 1 year.
Cheque Book Facility Free 25 cheque leaves per year
Passbook facility Free
Free education insurance cover Amount of Rs. 1,00,000 if the parents or guardian dies.

 2. Young Stars and Smart Star Accounts at ICICI Bank

Young Stars Account at ICICI Bank: The ICICI Bank Young Stars Account is the best savings account for kids, and it may be established by children aged 1 to 18. The parent or guardian must have an ICICI Bank account as well. If the parent or guardian does not have an ICICI Bank savings account, both accounts (the parent’s and the young star’s) can open at the same time.

Smart Star Account: Smart Star kids savings accounts allow minors over the age of ten to open and manage their accounts. It will instill a savings habit and a duty to spend carefully. The Young Stars Savings Account must have a minimum Monthly Average Balance (MAB) of Rs 2,500. 

Features and Details of Young Stars and Smart Star Accounts at ICICI Bank 

Features Details
Opening Balance Minimum Rs. 2500
Charges for non- maintenance of minimum monthly average balance (NMMAB) 6% of the shortfall in required MAB or Rs. 500 whichever is lower.
Debit Card Fees annual fees Nil
Cheque Books  Nil for 25 cheque leaves in a year;

Rs. 2 per leaf thereafter

 3. Kotak Mahindra Bank’s “My Junior Account”

The Kotak Mahindra My Junior account, which pays 6% per year, is the best savings account for kids. A 10-year Recurring Deposit and related Systematic Investment Plans are also available to establish long-term savings accounts for kids. It also includes a first-of-its-kind Junior ID card for children, and an interesting rewards program that includes book vouchers, movie tickets, as well as discount vouchers. Debit cards would be issued to youngsters above the age of ten years on their guardians’ request, with a withdrawal limit of Rs 5,000. 

Features and Details of Kotak Mahindra Bank’s My Junior Account 

Features Details
Minimum opening balance Customized
Average Zero Balance Zero
Credit card facility Available with personalization
Exclusive privileges Junior foodie, Junior day out, junior shopper, junior learner, junior angel.
Nomination facility Available
eligibility Age- below 18 years

Citizenship- Indian

Documents ID Proof. Address proof, signature proof, minor proof, Passport size photo.

 4. Axis Bank’s Future Stars Savings Account

For children under the age of 10, this account can be handled by a parent or guardian. The Axis Bank Future Star Savings Account for kids is intentional specifically for children under the age of 18. It assists you in teaching your children the fundamentals and the value of money to begin laying a sound financial foundation. 

Features and Details of Axis Bank’s Future Stars Savings Account 

Features Details
Opening Balance Minimum Rs. 2500 (For Metro Cities)
Average monthly Balance Rs. 2500 (For Metro Cities)

No AMB, in case you have FD of Rs. 25000 for 6 months or RD of Rs. 2000 for 1 year)

Debit Card facility Bank offers Axis bank VISA platinum card with an insurance fees of Rs. 200 and annual fees of Rs. 150 in metro and urban areas.
Additional Benefits Accidental cover insurance of the account holder up to Rs. 2 lacs (For this card must be used at least once every 6 month)

  • Free cheque book
  • Free SMS Alert
  • Free Internet Banking

 5. IDBI Bank’s Power Kids account

IDBI discovered that nowadays, parents begin saving money for their children as soon as they are born. The IDBI Bank created the IDBI Power Kids Savings Account to meet this specific demand. 

Features and Details of IDBI Bank’s Power Kids account 

Features Details
Opening Balance Minimum Rs. 500
maximum monthly withdrawal limit Rs.2000
Initial Deposit Requirements Nil
Interest Rate 40% per annum on daily balance
Passbook Charges Free

 6.Pehla Kadam Pehli Udaan (SBI)

Pehla Kadam and Pehli Udaan are two special accounts created by the State Bank of India for children.

 Pehla Kadam:

The following are the requirements for opening an SBI Pehla Kadam saving account:

As long as your child is a minor, you can open an SBI Pehla Kadam Account for them (up to 18 years of age). Pehla Kadam is a joint savings account for children, with your child as the primary account holder and you as the secondary account holder.

 Pehli Udaan:

The following are the requirements for this SBI Pehli Udaan saving account:

The child should be between the ages of 10 and 18. Unlike Pehla Kadam, the Pehli Udaan savings account for kids is a single-user account. The Pehla Kadam account is accessible in the minor’s sole name. 

Features and Details of SBI Pehla kadam Pehli Udaan

Features Pehla Kadam Pehli udaan
Minimum Average balance Not required Not required
Max. balance Rs. 10 lacs Rs. 10 lacs
Operation mode Joint or single Single
Cheque book Issued in the name of guardians Issues only of the child can sign uniformly
ATM Available with withdrawal limit of Rs. 5000 Available with withdrawal limit of Rs. 5000
Mobile Banking Available with transaction limit of RS. 2000 per day Available with transaction limit of RS. 2000 per day
Auto sweep facility Minimum threshold limit of Rs.20,000 Minimum threshold limit of Rs.20,000
Overdraft facility Not available Not available
Internet Banking Available with transaction limit of Rs. 5000 per day Available with transaction limit of Rs. 5000 per day

 7. Junior Account at Citibank

Citibank Junior Account eligibility requirements are as follows: The child must be between the ages of 15 and 18, and the account must have at least two holders, one of whom is the child and the other is the parent or guardian. A Citibank junior account can be opened only by a parent or guardian who already has a Citibank account. An international debit card, which can be used to make overseas payments, will be issued. All Citibank ATMs offer free cash withdrawals. Setting a withdrawal limit is an option that aids in budgeting. 

Features and Details of Junior Account at Citibank 

Features Details
Average Monthly Balance


No. of Account Holders 2
Debit Card Fees Nil
Passbook charges Free

 8.Karur Vysya Bank Jumbo Kids Savings Account

Parents nowadays want the best for their children. The best method to teach your child about money is to involve them in financial planning.

Karur Vysya Bank has created the Jumbo Kids Savings Account for youngsters. This account has a lot of benefits and teaches kids not only how to value money but also how to handle it responsibly. The account is only for children under the age of twelve, and there is no minimum balance requirement. The bank will give a free Visa-backed ATM card with no fee for issuing ATMs. They will bundle a Jumbo doll with the opening of an account to encourage children.

Features and Details of Karur Vysya Bank Jumbo Kids Savings Account

Features Details
Minimum Balance Nil
Average Monthly Balance


ATM Fees Nil
Attractive Jumbo Doll charges Free
Cash Remittance Free cash remittance of Rs. 50,000/- per day
Cheque Book Not Allowed

 9.Premier Junior Account at HSBC

To start an HSBC Premier Junior Account, you must be an existing HSBC Premier customer. You can create a Junior Savings Account for kids or a Supplementary Credit Card also. Then you have the option of getting your youngster an HSBC Premier Platinum Debit Card. You can choose a monthly statement that offers you a complete picture of your child’s spending. You also have the option of receiving text alerts to your cell number after a transaction is complete.

Not only that, but you may also make use of other services such as Global safety net, HSBC Premier foreign education advantages, and so on.

 Features and Details of Premier Junior Account at HSBC 

Features: Details:
Initial deposit USD1,000 or equivalent
Interest on birthday month bonus


Mobile Banking Available

  10. United Bank Children Savings Account for kids

A minor can now access his or her bank account at the United Bank of India, which is in the possession of the government. The primary goal of this account is to encourage youngsters to build a saving habit and to familiarize them with banking.

The minimum age to open this kids savings account is ten years old, and the account is a savings account in nature. To open these accounts, fill out the form as if it were a kids savings account. At the top of the account opening form, a mark with the words “United Children Savings A/c.” will be placed. The initial minimum deposit and the minimum balance in the account under this scheme are both Rs. 50/- (Rupees fifty).

A newly designed colorful passbook will be given to United Children Savings Account holders. If the passbook is lost, the bank will provide a replacement free of charge, subject to the customer’s requirements. Charges for transfers from one bank to another are also free. The Bank will provide one checkbook with many leaves at no cost.

 Features and Details of United Bank Children Savings Account for kids

Features Details
Initial deposit Rs.50
Passbook charges


Transfer fees from one bank to another Nil
Cheque Book charges Free

 Best Savings Account for Kids – FAQs

Why do we need a kids savings account?

Ans. A kids savings account is a helpful tool for youngsters to learn about money. Children can develop good money habits, learn the necessity of saving, and comprehend the value of money by gradually increasing savings throughout their youth.

What is the procedure for opening a kids savings account?

Ans. Generally, you may apply for a kids savings account online. You will only have to supply some basic details about yourself and your child. You can make your initial deposit and begin using your account once you have been accepted.

What is the minimum age to start a kids savings account?

Ans. Children under the age of 18 are eligible to open a kids savings account.

Is it necessary to pay taxes on a kids savings account?

Ans. You do not have to pay taxes if your child’s unearned income for the year is $1,100 or less (including investments and interest). If the amount is between $1,100 and $2,200, the income is taxed at the child’s rate (which is often zero). Unless the child’s tax rate is greater, anything over $2,200 is taxed at the parents’ rate.

What is the needed minimum amount in a savings account for kids?

Ans. For a savings account for kids, there is no minimum balance requirement.

In India, do minors have to pay taxes?

Ans. When a juvenile makes money from any job or activity that requires him to employ a special skill or expertise, he or she is obligated to file an income tax return. The junior winner, like the Masterchef winner, would be responsible for his taxes.

What is the best way to save for a child’s future?

Ans. There are several ways to save for your child’s financial future, but three stand out due to their tax advantages and asset control: 529 plans, UTMA/UGMA (Uniform Transfers to Minors Act/Uniform Gifts to Minors Act) accounts, and irrevocable trusts are all options.

Is it possible to make money out of a savings account for kids?

Ans. Keep in mind that the money is not yours even though you are a part-owner. Money becomes your child’s property the moment it is deposited into long-term savings accounts. Any withdrawals you make can only utilize to benefit the child.


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