Canara Bank vs Bandhan Bank: Children’s Savings Accounts

Canara Bank vs Bandhan 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. Bandhan Bank does not offer a dedicated children’s savings account but it does offer its standard savings account to minors.

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 Bandhan Bank Limited

Bandhan Bank is one of the most promising upcoming banks in India but it does not provide a dedicated children’s savings account. However, from a perusal of the account opening form, it appears the bank allows individuals to open and operate minor accounts. It also offers the option for minors above 10 years of age to open and maintain the account under their own name.

Standard Savings Account

Since it does not offer a dedicated children’s account (from a reading of the accounts in the bank’s website), here is a look at some features of the bank’s standard savings account.

Features

  • The account holder needs a monthly average balance of Rs. 5,000
  • One can deposit up to Rs. 5 lakh for free per month
  • Offers chequebook of 20 leaves per month for free which is more than the usual practice of offering one every quarter by most banks
  • Offers 5 free withdrawals at ATMs of other banks

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
  • Bandhan Bank Website: www.bandhanbank.com
  • Headquarters: Kolkata, West Bengal
  • Call Centre Number: 1800 258 8181