Indian Overseas Bank vs Lakshmi Vilas Bank: Children’s Savings Accounts

Indian Overseas Bank vs Lakshmi Vilas Bank: Children’s Savings Accounts

Indian Overseas Bank (IOB) offers the SB – Little Star account for young children while Lakshmi Vilas Bank does not have an account dedicated to children below 12 years of age, to whom it offers its general savings account called Savings Bank 301 through a parent or guardian. It does have an account for kids who have crossed 12 years of age called Savings Youth Power.

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 Lakshmi Vilas Bank Limited

Lakshmi Vilas Bank does not have an account dedicated to children below 12 years of age. It offers minors below that age its general savings account called Savings Bank 301 through a guardian. It does have an account for kids who have crossed 12 years of age called Savings Youth Power.

Savings Youth Power

This account is designed for kids in the 12-24 years age group.

Features

  • The account comes with a minimum balance of Rs. 100
  • There are no cash withdrawals at the home branch but at the same time, these withdrawals are not allowed at the non-home branches
  • Cash remittances are free at the home branch for all amounts but not for amounts over Rs. 5,000 at non-home branch
  • Demand draft or postal order charges are waived off for educational payments but are charged at standard rates for DDs made for other reasons
  • The bank does not provide any chequebook for kids up to 17 years of age. The same age criteria exist for internet banking also. Mobile banking is free
  • The Savings Youth Power Account, however, does offer an international debit card powered by Visa with a daily withdrawal limit of Rs. 5,000 per day. The card is free for the first year and a fee of Rs. 100 is charged from the second year

Savings Bank 301

The primary savings account of the bank. The standard features of the account are listed below and are likely to be different for minor accounts. (We suggest readers interested in opening this account for their child to discuss the specifics with the bank.)

Features

  • It allows guardians to open accounts for minors below 12 years while kids above 12 years can open and operate the account under their own name
  • The minimum deposit is Rs. 1,000 for rural, Rs. 3,000 for semi-urban and Rs. 5,000 for urban branches
  • The Savings Bank 301 Account does not have any restrictions on deposit or withdrawals

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
  • Lakshmi Vilas Bank Website: www.lvbank.com
  • Headquarters: Chennai, Tamil Nadu
  • Call Centre Number: 1800 425 2233