Kotak Mahindra Bank vs IDFC First Bank: Children’s Savings Accounts

Kotak Mahindra Bank vs IDFC First Bank: Children’s Savings Accounts

Kotak Mahindra Bank offers a dedicated account called Junior – The Savings Account for Kids. Likewise, IDFC First Bank offers a dedicated savings bank product for children called the Minor’s Savings Account.

Children’s Savings Accounts from Kotak Mahindra Bank

Kotak Mahindra Bank offers a children-focussed account called Junior – The Savings Account for Kids. Here is a look at some features of the account.

Junior – The Savings Account for Kids

The account comes in two variants, the standalone account and a bundle pack that includes the Junior Savings Account and a Guardian Savings Account.

Features

  • The account offers one of the higher interest rates for children’s accounts at 5% (as of November 2018)
  • Bundled plan accountholders get access to a Recurring Deposit (RD) or a Systematic Investment Plan (SIP). The RD starts from as little as Rs. 2,000 and tenures that start from 36 months, while in the case of SIP the guardian can choose the amount and tenure
  • The standalone Junior Account comes in different variants such as Platina, Ace, Pro, Classic, Edge and Nova. The distinction between these is the minimum balance required in the account and the customer segment to which the account is offered. For instance, the Platina account is a continuation of a portfolio of plans that Kotak Mahindra Bank acquired from its purchase of ING Vysya, while the Classic account is targeted at semi-urban and rural areas, and so on
  • There is no minimum balance requirement for bundled Nova accounts provided they have an RD or a SIP in place. Otherwise, an average monthly balance of Rs. 5,000 is needed for Junior accounts. For non-junior accounts, the average monthly balance required is Rs. 5,000 (Nova), Rs. 10,000 (Edge and Classic), Rs. 50,000 (Ace) and Rs. 1 lakh (Platina)
  • The charges for non-maintenance of the average balance ranges from Rs. 150 to Rs. 600 per month depending on the balance and the type of account.
  • The Junior Savings Account offers personalised debit cards with daily withdrawal limits of Rs. 5,000 for kids above 10 years of age
  • The bank offers certain children-centric privileges such as Junior Foodie, Junior Day Out, Junior Shopper, Junior Learner and Junior Angel

Children’s Savings Accounts from IDFC First Bank

IDFC First Bank has a dedicated savings bank product for children, which it simply calls the Minor’s Savings Account.

Minor’s Savings Account

The account is available to all children below 18 years of age provided the parent or guardian has an account with the bank.

Features

  • Children accountholders above 10 years of age can open and operate the account in their own name
  • The bank requires a minimum deposit of Rs. 25,000 at the time of opening the account
  • There is no obligation to keep a minimum balance but there is a mandatory stipulation under which a sum of Rs. 2,000 per month must be transferred for a period of 2 years from the parent’s account to the child’s account
  • A debit card is only provided if it is opted for. Plus, the Minor’s Savings Account comes with specific limits of Rs. 10,000 each at domestic ATMs and POS sales
  • The account comes with a sweep facility under which when the account balance crosses Rs. 15,000, the balance over and above Rs. 10,000 is transferred into a fixed deposit with a tenure of one year and one day

Reference Facts

  • Kotak Mahindra Bank Website: www.kotak.com
  • Headquarters: Mumbai, Maharashtra
  • Call Centre Number: 1860-266-2666, 1860-266-0811 (for 811 Digital Bank Customers)
  • IDFC First Bank Website: www.idfcfirstbank.com
  • Headquarters: Mumbai, Maharashtra
  • Call Centre Number: 1800 419 4332