ICICI Bank vs Kotak Mahindra Bank: Children’s Savings Accounts
ICICI Bank has two dedicated children’s accounts called the Young Stars Account and Smart Star Savings Account. Kotak Mahindra Bank offers a dedicated account called Junior – The Savings Account for Kids.
Children’s Savings Accounts from ICICI Bank
India’s second largest private sector bank offers two dedicated children’s accounts called the Young Stars Account and Smart Star Savings Account.
Young Stars Account
The account can be opened by a parent or guardian for the child who is between the ages of 1 day old and 18 years
- The children get a debit card with per day limit of 2,500 for ATM and POS transactions (A caveat here: the wording on the site is not clear if the limit is Rs. 2,500 or Rs. 5,000 but the FAQs section of the account puts the limit as Rs. 2,500 (for withdrawal and spends?)
- The Young Star – Minor Under Guardianship Account has no transaction limit
- The card has a Zero Liability feature that protects against unauthorised transactions if the card is lost or misplaced provided the same is communicated to the bank within 15 days
- Kids can earn 1 reward point for every Rs. 200 spent on the card
- The minimum monthly average balance needed for the Young Stars Account is Rs. 2,500. The charges in case of non-maintenance of this minimum amount is 5% of the shortfall
- Parents can put in standing instructions to debit money directly from their account to the kid’s account
- The account has a Money Multiplier facility or the sweep in-sweep out option to put the money in a fixed deposit if the amount crosses a certain limit
Smart Star Savings Account
The account is available for kids above 10 years and up to 18 years of age to open and operate independently on their own. It comes in two options. More on the second point in the features below. Most of the features and fees and charges are same as the Young Stars Account
- The account comes in two variants – with guardian consent and without guardian consent. In the former case, the account will have a limit of Rs. 2 lakh on debit transaction every fiscal. If the account does not have guardian consent, this limit is Rs. 50,000
- Accountholders get a debit card with per day limit of 5,000 each for ATM and POS transactions
- As with Young Stars Account, the card for Smart Star Savings Account has the Zero Liability feature that insures against unauthorised transactions if the card is lost, stolen or misplaced if the bank is told of the same within 15 days
- Even here, the child earns 1 reward point for every Rs. 200 spent through the card
- The minimum monthly average balance is also same at Rs. 2,500 and so are the fees for non-maintenance of this minimum amount
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
- ICICI Bank Website: www.icicibank.com
- Headquarters: Mumbai, Maharashtra
- Call Centre Number: 1800 200 3344, 1800-103-8181 (Private Banking). Has specific number for different cities
- Kotak Mahindra Bank Website: www.kotak.com
- Headquarters: Mumbai, Maharashtra
- Call Centre Number: 1860-266-2666, 1860-266-0811 (for 811 Digital Bank Customers)