Bank of Maharashtra vs IDFC First Bank: Children’s Savings Accounts

Bank of Maharashtra has Mahabank – Yuva Yojana for children in the 10-18 years age group. This is a savings cum investment account as a child can open a savings account and invest in recurring deposits and fixed deposits. IDFC First Bank offers a dedicated savings bank product for children called the Minor’s Savings Account.

Children’s Savings Accounts from Bank of Maharashtra

Mahabank – Yuva Yojana

Bank of Maharashtra offers the Mahabank – Yuva Yojana as a comprehensive solution to take care of the savings needs and expenses of young children.

Features

• Under this, children can open savings accounts and invest in recurring deposits and fixed deposits
• The savings account has no minimum balance requirements and can be opened with only Rs. 10
• Children do not get any chequebook until they are over 18 years, but by then the account becomes a standard savings account with minimum balance requirements and other terms and conditions that apply to the standard account
• The Mahabank – Yuva Yojana account comes with a free debit card but with specified spending limits
• Account holders can put in standing instructions to transfer money from their accounts to their recurring deposit. In addition, parents can put in standing instructions to put in money from their account to the child’s account
• Bank of Maharashtra also sanctions education loans to deserving students at the time to admission if they have held the account for over 6 months

Savings Account

The bank also allows parents and guardians to open a savings account jointly with a minor child.

Features

• The minimum average balance requirements for the Mahabank – Savings Bank Scheme are calculated on a monthly basis. Service charges are applicable if the balance is less
• The documents needed to open the account (besides the application, of course) are an ID proof, an address proof, two passport-sized photographs and the PAN card or Form 60/61
• Interest is calculated on the daily balance on a quarterly basis

Children’s Savings Accounts from IDFC First Bank Limited

IDFC First Bank offers a dedicated savings bank product for children called 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

• Bank of Maharashtra Website: www.bankofmaharashtra.in and https://www.mahaconnect.in/jsp/index.html (net banking)
• Headquarters: Pune, Maharashtra
• Call Centre Toll-Free Number: 1800 233 4526, 1800 102 2636

• IDFC Bank Website: www.idfcbank.com
• Headquarters: Mumbai, Maharashtra
• Call Centre Number: 1800 419 4332