Canara Bank vs Axis Bank: Children’s Savings Accounts

Canara Bank has a Canara Junior Saving Account for children and the Canara NSIGSE Savings Bank Deposit Account for the girl child. The bank also has a children’s deposit scheme called the Canara Champ Deposit Scheme. Axis Bank offers an account called the Future Stars Savings Account.

Children’s Savings Accounts from Canara Bank

Canara Junior Saving Account

The account is targeted at children above 10 years of age who can operate the account under their own name. Details are not available on the account’s page in the Canara Bank site whether children below 10 years can open the account or not as of September 2019.

Features

  • Kids above 10 years can open the account under their own name and operate the account independently
  • They get a debit card in their name with a monthly withdrawal limit of Rs. 5,000
  • The bank mandates a monthly withdrawal limit of Rs. 10,000. Read with the debit card limit, this means that the child can withdraw another Rs. 5,000 by online transfer or cheques (not clear if bank provides these two facilities for this account) or by visiting the branch and putting in a withdrawal slip
  • The account has two other restrictions. The first being that the balance at any point of time cannot be more than Rs. 50,000 and the second being the total credit cannot exceed Rs. 1,00,000 (1 lakh) in a year
  • A declaration is required from the parent or guardian at the time of opening the Canara Junior Saving Account and for SMS alert facility

Canara NSIGSE Savings Bank Deposit Account

The account has been designed under the directives of the Ministry of Human Resources, Government of India, to reduce school dropout rates among girl children.

Features

  • The account is available for the girl child who has passed class 8 and (a) belongs to an SC/ST group, or (b) has passed from a Kasturba Gandhi Balika Vidyalaya and has enrolled herself for class 9 in state government, government-aided or local body school. Girls studying in private or Central Government schools are not eligible for the account
  • The parent or guardian has to provide a declaration that the child has sufficient knowledge to operate the account
  • No chequebooks are issued with the account until the kid reaches the age of 18 years. Until then, withdrawals are mainly through withdrawal slips
  • There is no minimum balance requirement in the Canara NSIGSE Savings Bank Deposit Account, which can even have zero balance

Savings Bank Account

The generic savings bank account that can be opened for minors jointly with the parent or under their guardianship.

Features

  • The accounts need an average monthly balance of Rs. 500 for rural areas and Rs. 1,000 for urban and metro areas
  • The savings account pays interest in quarterly instalments in a year February, May, August and November

Canara Champ Deposit Scheme

A deposit scheme that is especially targeted at children up to the age of 12 years.

Features

  • The deposit scheme will be opened in the child’s name. There is no facility for opening the account jointly with the parent or guardian
  • The deposit can be opened for kids below the age of 12 years. After they attain maturity, it is converted into the standard savings account
  • The bank offers an eye-catching savings box to help the child inculcate saving habits
  • The kid also receives a personal photo folder with 16 pouches to record her life stages through photographs
  • In case there is no withdrawal from the account, the account holder is eligible to receive a Loan Eligibility Card for an educational loan from the bank
  • The interest rate in the Canara Champ Deposit Scheme is same as applicable for savings bank accounts. As of July 2018, this is 4% per annum
  • The minimum deposit amounts are same as that for savings bank accounts, i.e. Rs. 500 for rural and Rs. 1,000 for urban and metros
  • The bank offers the option to convert balances over Rs. 15,000 into the fixed deposits under its Kamadhenu Deposit Scheme (Re-Investment Plan)

Children’s Savings Accounts from Axis Bank Limited

The third largest private sector bank in India, Axis Bank, offers a specific children’s account called Future Stars Savings Account. It also offered an account targeted at the youth called the YOUth Account but the bank has stopped opening these accounts (existing accounts will continue to work).

Future Stars Savings Account

An account meant for children up to 18 years of age.

Features

  • The initial account opening deposit and minimum monthly balance requirement are both Rs. 2,500 in metros. There is no monthly balance requirement if there is a fixed deposit of Rs. 25,000 for six months or a recurring deposit of Rs. 2,000 for a year
  • Can be opened by a child on her own if she has crossed the age of 10 years. Otherwise, it needs to be operated by the parent or guardian
  • The child gets four cheque books every year in her own name if she is over 10 years of age. In case she is younger than 10 years, the cheque book is in the name of the parent or guardian
  • Accountholders get a Visa Classic Debit Card for an issuance fee of Rs. 200 and annual fee of Rs. 100. The fee is for metro and urban areas only
  • The card comes with a personalised image of the child if she is above 10 years
  • The bank offers a daily withdrawal limit of Rs. 1,500 under the Future Stars Savings Account
  • The first five transactions at an Axis Bank ATM and the first three or five (depending on whether metro or non-metro location) at non-Axis Bank ATMs are free
  • The account comes with a personal accident cover of Rs. 2 lakh and liability from fraudulent transactions of up to Rs. 50,000
  • The bank offers reward points on various transactions such as opening an Axis Direct (trading) account, keeping Rs. 25,000 as minimum monthly balance and so on

Reference Facts

  • Canara Bank Websites: www.canarabank.com/english/ and www.canarabank.in/ (net banking)
  • Headquarters: Bangalore, Karnataka
  • Call Centre Toll Free Number: 1800 425 0018
  • Axis Bank Website: www.axisbank.com
  • Headquarters: Mumbai, Maharashtra
  • Call Centre Number: 1800 419 5959,1800419 6969