Federal Bank vs Kotak Mahindra Bank: Children’s Savings Accounts
Federal Bank offers two savings accounts called Young Champ and YuvaMitra for children and young adults. Kotak Mahindra Bank offers a dedicated account called Junior – The Savings Account for Kids.
Children’s Savings Accounts from Federal Bank
Federal Bank offers two savings accounts called Young Champ and YuvaMitra for children. Details of whether its standard savings accounts can be opened for children are not available on the website.
The account is for all children up to the age of 18 years whether resident in India or abroad.
- The account needs an average monthly balance of Rs. 1,000
- Children below 10 years can only open the account if the parent or guardian acts as the authorised signatory while kids above that age can open the account in their own name and operate it independently
- The child also gets a specially designed debit card with a daily ATM or POS transaction limit of Rs. 2,500 with the Young Champ account
- Charges on demand drafts for educational purposes are waived off up to a sum of Rs. 50,000
- The bank offers reward points if the account holder or her parent or guardian opens a recurring deposit
- Internet banking comes with a view-only facility
- The accountholder also gets free email and mobile alerts and free standing instructions to debit account of parent and transfer the same to that of the child
- The account cannot be opened online and the child, parent or guardian has to visit the branch
The account can be opened by any kid after they have passed class 10 and up to the time they have attained their professional degree or diploma.
- There is no minimum balance requirement for the account
- The young adult gets a chequebook of 20 leaves a year and a debit card
- The daily cash withdrawal and POS limits are both Rs. 50,000 for the YuvaMitra account
- Accountholders get free internet banking, mobile banking and email alerts
Children’s Savings Accounts from Kotak Mahindra Bank
Kotak Mahindra Bank offers a children-focussed account called Junior – The Savings Account for Kids. Here is a look at some features of the account.
Junior – The Savings Account for Kids
The account comes in two variants, the standalone account and a bundle pack that includes the Junior Savings Account and a Guardian Savings Account.
- The account offers one of the higher interest rates for children’s accounts at 5% (as of November 2018)
- Bundled plan accountholders get access to a Recurring Deposit (RD) or a Systematic Investment Plan (SIP). The RD starts from as little as Rs. 2,000 and tenures that start from 36 months, while in the case of SIP the guardian can choose the amount and tenure
- The standalone Junior Account comes in different variants such as Platina, Ace, Pro, Classic, Edge and Nova. The distinction between these is the minimum balance required in the account and the customer segment to which the account is offered. For instance, the Platina account is a continuation of a portfolio of plans that Kotak Mahindra Bank acquired from its purchase of ING Vysya, while the Classic account is targeted at semi-urban and rural areas, and so on
- There is no minimum balance requirement for bundled Nova accounts provided they have an RD or a SIP in place. Otherwise, an average monthly balance of Rs. 5,000 is needed for Junior accounts. For non-junior accounts, the average monthly balance required is Rs. 5,000 (Nova), Rs. 10,000 (Edge and Classic), Rs. 50,000 (Ace) and Rs. 1 lakh (Platina)
- The charges for non-maintenance of the average balance ranges from Rs. 150 to Rs. 600 per month depending on the balance and the type of account.
- The Junior Savings Account offers personalised debit cards with daily withdrawal limits of Rs. 5,000 for kids above 10 years of age
- The bank offers certain children-centric privileges such as Junior Foodie, Junior Day Out, Junior Shopper, Junior Learner and Junior Angel
- Federal Bank Website: www.federalbank.co.in
- Headquarters: Aluva (Kochi), Kerala
- Call Centre Number: 1800 425 1199
- Kotak Mahindra Bank Website: www.kotak.com
- Headquarters: Mumbai, Maharashtra
- Call Centre Number: 1860-266-2666, 1860-266-0811 (for 811 Digital Bank Customers)