HDFC Bank vs Equitas Small Finance Bank: Children’s Savings Accounts

HDFC Bank offers a dedicated children’s savings account called Kids Advantage Account. Equitas Small Finance Bank does not have a children’s savings account but it is likely that its standard savings accounts are available to minors like other banks.

Children’s Savings Accounts from HDFC Bank

HDFC Bank, the largest private sector bank in the country in terms of market capitalisation as of September 2019, offers a dedicated children’s savings account called Kids Advantage Account.

Kids Advantage Account

The primary aim of the account is to help build a corpus for the child for her future financial needs.

Features

  • The account is available for every child up to the age of 18 years
  • The bank mandates a minimum average monthly balance of Rs. 5,000 below which it charges service fees. The service fee is Rs. Rs. 150 in case the balance is between Rs. 2,500 and Rs. 5,000, and Rs. 300 in case the balance is less than Rs. 2,500
  • Minors above the age of 10 years can open and operate the account on their own
  • HDFC Bank requires the parent or guardian to have a savings account with the bank before they can open a Kids Advantage Account
  • The international ATM-cum-Debit card debit card comes with a Rs. 2,500 ATM withdrawal limit and Rs. 10,000 POS limit per day
  • HDFC Bank also offers an education insurance cover of Rs. 1 lakh for the child in case the parent or guardian passes away in a road, rail or air accident
  • Its MoneyMaximizer option allows the accountholder to agree to a sweep-out option. Under this when the account reaches or crosses Rs. 35,000, any sum in excess of Rs. 25,000 is automatically transferred to a fixed deposit for 1 year and 1 day
  • The accountholders get a free payable at par chequebook of 25 leaves at the time of account opening and every year thereafter
  • The account comes with free net, phone and SMS banking facilities

Children’s Savings Accounts from Equitas Small Finance Bank

Equitas Small Finance Bank does not have a children’s savings account but it is likely that its standard savings accounts are available to minors like other banks.

My Savings Account

The account has been designed for people to save and earn interest on their money.

Features

  • There is no average quarterly balance requirements for the account
  • The accountholder does not get a cheque book with the account
  • The interest rates on the account are better than that for larger banks with the minimum interest starting at 5.5% for balance up to Rs. 1 lakh
  • The bank however charges a fee for outward remittances on the My Savings Account. NEFT and RTGS are charged on a slab system while IMPS payments are charged a flat fee of Rs. 5 per transaction

Standard Savings Account

The account requires a minimum average quarterly balance or a minimum fixed deposit amount or a minimum level of debit card usage for purchases. Customers can also group the account with family members to tide over these restrictions.

Features

  • The minimum average quarterly balance for the account is Rs. 5,000
  • Customers can choose to keep a fixed deposit of at least a year of Rs. 50,000 instead of the balance in the account
  • The bank also offers the alternative to have the customer spend Rs. 4,999 using the debit card online or at POS transactions instead of the bank balance or a fixed deposit
  • The account can be grouped with family members having a savings account or business having a current account of higher value. The minimum balance requirements can be avoided this way
  • Accountholders get a Platinum or Signature debit card
  • Standard Savings Account holders get a complimentary chequebook of 25 leaves every half year
  • The bank offers 5 free transactions across RTGS, NEFT, IMPS, demand drafts, cash or cheques

Regular Savings Account

The Regular Savings Account from Equitas Small Finance Bank is a step up from the Standard Savings Account

Features

  • The minimum average quarterly balance for this account is Rs. 10,000
  • Like the Standard Account, customers can choose to keep a Rs. 50,000 fixed deposit for at least a year instead of the average quarterly balance in the account
  • The minimum debit card spend limit if one chooses to not keep the minimum balance or have an FD with the bank is Rs. 9,999. The limit considers both online and POS transactions
  • Like the standard savings account, this one also can be grouped with family members or a business to avoid minimum balance requirements. With family members, the other savings account should have a higher value. With a business, the current account should have at least similar value
  • Customers get a Platinum debit card with the account
  • Regular Savings Account holders are given a free 25 leaves chequebook every quarter
  • The bank offers 8 free transactions across RTGS, NEFT, IMPS, demand drafts, cash or cheques

Reference Facts

  • HDFC Bank Website: www.hdfcbank.com
  • Headquarters: Mumbai, Maharashtra
  • Call Centre Number: 1800 258 3838
  • Equitas Small Finance Bank Website: www.equitasbank.com
  • Headquarters: Chennai, Tamil Nadu
  • Call Centre Number: 1800 103 1222