Canara Bank vs Suryoday Small Finance 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. Suryoday Small Finance Bank does not offer a dedicated children’s account but instead offers minors the option to open a standard savings account as a minor 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.
- 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.
- 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.
- 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.
- 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 Suryoday Small Finance Bank Limited
Suryoday Small Finance Bank does not offer a dedicated children’s account and offers minors the option to open a standard savings account as a minor account. All of the bank’s savings accounts can be opened by a minor under a parent or a guardian. We take a look at the two base variants of the bank’s savings account line-up.
The account is the most basic of the savings accounts offered by Suryoday.
- The average monthly balance requirement is Rs. 2,000, though anyone choosing to open an account has to start with an initial deposit of Rs. 3,000
- Accountholders can choose to keep a fixed deposit of Rs. 10,000 in lieu of the minimum balance
- The bank offers a higher rate of interest than most other banks for similar slabs of balance. Accounts with balance up to Rs. 1 lakh earn 6.25% per annum and those with balance between Rs. lakh and Rs. 10 lakh earn 7.25%. This is as of March 2019
- The Savings Ujjwal account comes with a RuPay Classic Secure Chip Debit Card
- The daily ATM and POS limits is restricted to Rs. 20,000
- Online money transfers such as RTGS, NEFT, IMPS are chargeable after 3 transactions
- The bank offers a personal accident insurance cover of Rs. 1 lakh with the account
This savings account is ranked one step up the Savings Ujjwal.
- The account has a minimum average monthly balance of Rs. 5,000 and needs Rs. 7,500 to open the account
- Accountholders can create and keep an FD of Rs. 25,000 if they want to forego the minimum balance requirements
- The Savings Aditya account also comes with a RuPay Classic Secure Chip Debit Card
- The limit on daily ATM and POS transaction is pegged at Rs. 40,000
- Accountholders get 10 free ATM transactions on the bank’s own ATMs and up to 5 on other bank ATMs
- The accountholder can access up to 10 free RTGS, NEFT or IMPS payment transfers
- Like with the Ujjwal account, the Aditya offers a higher rate of interest
Note: Suryoday in its savings account page/tabs for each account clearly mentions that all bank’s savings accounts from Ujjwal to Savings Supreme can be opened on behalf of a minor
- Canara Bank Websites: www.canarabank.com/english/ and www.canarabank.in/ (net banking)
- Headquarters: Bangalore, Karnataka
- Call Centre Toll-Free Number: 1800 425 0018
- Suryoday Small Finance Bank Website: www.suryodaybank.com
- Headquarters: Navi Mumbai, Maharashtra
- Call Centre Number: 1800 266 7711