Indian Overseas Bank vs Jana Small Finance Bank: Children’s Savings Accounts
Indian Overseas Bank (IOB) offers the SB – Little Star account for young children while Jana Small Finance Bank does not offer a dedicated minor savings account even though the standard savings account can be opened by a minor jointly with a parent or guardian.
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.
- 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 Jana Small Finance Bank Limited
Jana Small Finance Bank does not offer a dedicated minor savings account and though it does not mention clearly on its website if the regular savings account is open for minors, reading of the Terms and Conditions of the service charges file shows that the account can be opened by or on behalf of minors.
Regular Savings Account
This is the standard savings account of the bank.
- The bank needs an average monthly balance of Rs. 2,500
- The Regular Savings Account comes with a RuPay Debit Card
- The bank has not put a cap on the number of withdrawals the accountholder can make though the bank’s ATMs, except for minors where it has been pegged at Rs. 10,000 per month
- The bank has put a limit on the amount that can be withdrawn from the ATM or be spent at POS transaction for minor accounts. The cash withdrawal limit is Rs. 5,000 and the POS limit is Rs. 10,000 per day
- The bank accountholder gets 3 complimentary cash transactions at other bank ATMs in metro locations and 5 at non-metro locations
- Accountholders get one complimentary chequebook for each quarter
- The company offers the customer the option of getting an SMS alert facility on payment of Rs. 15 per quarter
- Indian Overseas Bank Website: www.iob.in and www.iobnet.co.in (net banking)
- Headquarters: Chennai, Tamil Nadu
- Call Centre Number: 1800 425 4445
- Jana Small Finance Bank Website: www.janabank.com
- Headquarters: Bengaluru, Karnataka
- Call Centre Number: 1800 2080, 1800 4200