Indian Overseas Bank vs Capital Small Finance Bank: Children’s Savings Accounts

Indian Overseas Bank (IOB) offers the SB – Little Star account for young children while Capital Small Finance Bank allows kids to open its standard savings account called Normal Savings Account under guardianship.

Children’s Savings Accounts from Indian Overseas Bank

SB – Little Star Account

The account has been designed for all children – from 1 day old babies to up to 18 year old young adults.

Features

  • The account can be opened by any child aged 1 day to less than 18 years
  • The minimum balance needed in the account is Rs. 100, while the maximum amount that can be kept is Rs. 50,000
  • IOB offers free collection facility for cheques or draft instruments gifted to the child and valued up to Rs. 25,000 per annum
  • It also offers a Sweep-In, Sweep-Out facility where any amount in the account in excess of Rs. 10,000 is taken out of the account and turned into fixed deposits of Rs. 2,000 each. If the balance falls below Rs. 10,000 then the most recent fixed deposits are put back in the SB – Little Star Account so the balance is back to being at least Rs. 10,000
  • Parents also have the option to invest in other options such as recurring deposits, insurance, mutual funds and so on

Children’s Savings Accounts from Capital Small Finance Bank Limited

Capital Small Finance Bank allows a parent or guardian to open its standard savings account – Normal Savings Account – on behalf of a child.

Normal Savings Account

This is the standard savings account of the bank. We list the features below if you want to open a children’s account with the bank.

Features

  • The Normal Savings Account of Capital Small Finance Bank can be opened on behalf of minors by their parent or guardian. Other accountholders have to reach the age of 18 years before they can open an account. So, in all effect, the account opened for minors can be classified as a minor’s account with different set of services than standard accounts
  • The minimum balance needed is Rs. 100 in rural areas but without chequebooks. In case a chequebook is needed, the minimum balance needed is Rs. 300. In urban or semi-urban areas it is Rs. 300 without chequebook and Rs. 500 with one
  • All other factors are similar to standard savings account

Note: Information on the savings accounts is sketchy and it will be best if you approach the bank to open a minor account. Being a Jalandhar headquartered bank, it may be a good idea to open an account with this bank if you stay in the city or adjoining areas. The bank has a very strong growth strategy and intends to reach over 220 branches by 2021.

Reference Facts

  • Indian Overseas Bank Website: www.iob.in and www.iobnet.co.in (net banking)
  • Headquarters: Chennai, Tamil Nadu
  • Call Centre Number: 1800 425 4445
  • Capital Small Finance Bank Website: www.capitalbank.co.in
  • Headquarters: Jalandhar, Punjab
  • Call Centre Number: 1800 120 1600 (8 am ? 8 pm)