Central Bank of India vs Lakshmi Vilas Bank: Children’s Savings Accounts

Central Bank of India vs Lakshmi Vilas 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. Lakshmi Vilas Bank does not have an account dedicated to children below 12 years of age, to whom it offers its general savings account called Savings Bank 301 through a parent or guardian. It does have an account for kids who have crossed 12 years of age called Savings Youth Power.

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.

Cent Balbhavishya

The deposit account was conceived with the intention of cultivating saving habits among children.

Features

  • 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.

Features

  • 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 Lakshmi Vilas Bank Limited

Lakshmi Vilas Bank does not have an account dedicated to children below 12 years of age. It offers minors below that age its general savings account called Savings Bank 301 through a guardian. It does have an account for kids who have crossed 12 years of age called Savings Youth Power.

Savings Youth Power

This account is designed for kids in the 12-24 years age group.

Features

  • The account comes with a minimum balance of Rs. 100
  • There are no cash withdrawals at the home branch but at the same time, these withdrawals are not allowed at the non-home branches
  • Cash remittances are free at the home branch for all amounts but not for amounts over Rs. 5,000 at non-home branch
  • Demand draft or postal order charges are waived off for educational payments but are charged at standard rates for DDs made for other reasons
  • The bank does not provide any chequebook for kids up to 17 years of age. The same age criteria exist for internet banking also. Mobile banking is free
  • The Savings Youth Power Account, however, does offer an international debit card powered by Visa with a daily withdrawal limit of Rs. 5,000 per day. The card is free for the first year and a fee of Rs. 100 is charged from the second year

Savings Bank 301

The primary savings account of the bank. The standard features of the account are listed below and are likely to be different for minor accounts. (We suggest readers interested in opening this account for their child to discuss the specifics with the bank.)

Features

  • It allows guardians to open accounts for minors below 12 years while kids above 12 years can open and operate the account under their own name
  • The minimum deposit is Rs. 1,000 for rural, Rs. 3,000 for semi-urban and Rs. 5,000 for urban branches
  • The Savings Bank 301 Account does not have any restrictions on deposit or withdrawals

Reference Facts

  • 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
  • Lakshmi Vilas Bank Website: www.lvbank.com
  • Headquarters: Chennai, Tamil Nadu
  • Call Centre Number: 1800 425 2233