Central Bank of India vs IDFC First Bank: Children’s Savings Accounts
Central Bank of India has the Cent Balbhavishya deposit account for kids. This is a deposit account and the bank offers its standard savings account to children for regular transactions. In addition, Central Bank offers recurring and fixed deposits for children. IDFC First Bank offers a dedicated savings bank product for children called the Minor’s Savings Account.
Children’s Savings Accounts from Central Bank of India
The bank has a children-only deposit account called Cent Balbhavishya and a standard savings account that can be opened jointly with an adult or in their own name by kids above 12 years of age. It also offers its standard recurring and fixed deposits for children through joint accounts.
The deposit account was conceived with the intention of cultivating saving habits among children.
- Any child up to the age of 12 years can open the account jointly with a parent or a guardian
- The minimum deposit needed to open the account is Rs. 50 for rural and semi-urban areas and Rs. 100 for urban areas and metros
- The bank requires at least one deposit in the account every month with total amount in account for each half-year being at least Rs. 500 (rural and semi-urban) or Rs. 1,000 (urban and metros)
- No withdrawals are permitted until the child reaches the age of 18 years, unless it is to make a fixed deposit
- Accordingly, cheque books are issued only when the child reaches 18 years
- Any excess amount in the account above Rs, 10,000 may be put into a fixed deposit for a period of 6 months to 10 years
- Central Bank of India will pay an additional interest of 0.5% on any fixed deposit for the child that is created from the funds in the Cent Balbhavishya account. The standard rates will apply from the time the child attains the age of majority
Home Saving Safe Accounts
This is the standard savings account of the bank.
- It can be opened by a minor jointly with an adult if she is below 12 years of age or by the minor herself if she is over 12 years and can read and write and operate the account
- The minimum amount needed to open the Home Saving Safe Account is Rs. 250 for rural branches, Rs. 500 for semi-urban branches and Rs. 1,000 for urban and metro branches
- The bank website mentions that a birth certificate from the Gram Panchayat, Notified Area Committee or Municipal Corporation will suffice as ID proof, though it is likely that with the spread of Aadhaar, an Aadhaar card or an Aadhaar enrolment number may be required
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.
- 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
- Central Bank of India Website: www.centralbankofindia.co.in and www.centralbank.net.in (net banking)
- Headquarters: Mumbai, Maharashtra
- Call Centre Toll-Free Number (24 hours): 1800 22 1911
- IDFC Bank Website: www.idfcbank.com
- Headquarters: Mumbai, Maharashtra
- Call Centre Number: 1800 419 4332