Central Bank of India vs Karur Vysya 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. Karur Vysya Bank meanwhile offers two dedicated accounts for children called the Jumbo Kids Savings Account and the Student 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 Karur Vysya Bank Limited
Karur Vysya Bank offers two dedicated accounts for children called the Jumbo Kids Savings Account and the Student Savings Account.
Jumbo Kids Savings Account
Unlike most other banks that offer children’s accounts for kids up to the age of 18 years or more, Karur Vysya offers this account for children below the age of 12 years. This by itself is something that makes this account special. Let us look at features too.
- The account is available for children up to the age of 12 years (we are repeating what we have written above but we like what the bank has done and so there)
- There is no minimum balance requirement
- The account is in the name of the child though the authorised signatory is the guardian
- All cash withdrawals are to be done through the ATM and the bank offers a Visa ATM card for that purpose
- One can send or use (remittance is the word used on the bank website) up to Rs. 50,000 per day at the branch
- Children who open a Jumbo Kids Savings Account get a Jumbo (elephant) Doll
- The account does not come with a chequebook and neither does it have online or mobile banking facilities
Student Savings Account
The second account offered by the bank for children. It is meant for kids who have go to school or college and offers facilities that are meant to help children with school fees and other education-related payments.
- The account can be opened by kids below 12 years of age through a guardian, while they can open and operate one on their own if they have reached the age of 12 years
- The maximum age limit up to which one can have the account is 29 years
- The ATM debit card can be used for cash withdrawals for free at Karur Vysya ATMs and up to 5 times for free at other ATMs of banks that belong to the National Financial Switch. There is an annual maintenance charge of Rs. 75 on the card
- The chequebook is only offered to students after they have crossed 18 years of age
- There is no limit on cash remittance at the base branch though it is capped at Rs. 10,000 at non-base branches for the Student Savings Account
- An important thing to note here is that the total number of debit transactions on the account and any other linked accounts for the same person cannot be more than 90 for every six months
- 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
- Karur Vysya Bank Website: www.kvb.co.in and www.kvbin.com (net banking)
- Headquarters: Karur, Tamil Nadu
- Call Centre Number: 1860 200 1916