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

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

Indian Overseas Bank (IOB) offers the SB – Little Star account for young children while Suryoday Small Finance Bank does not offer a dedicated children’s account but instead offers minors the option to open a standard savings account as a minor account.

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 Suryoday Small Finance Bank Limited

Suryoday Small Finance Bank does not offer a dedicated children’s account and offers minors the option to open a standard savings account as a minor account. All of the bank’s savings accounts can be opened by a minor under a parent or a guardian. We take a look at the two base variants of the bank’s savings account line-up.

Savings Ujjwal

The account is the most basic of the savings accounts offered by Suryoday.

Features

  • The average monthly balance requirement is Rs. 2,000, though anyone choosing to open an account has to start with an initial deposit of Rs. 3,000
  • Accountholders can choose to keep a fixed deposit of Rs. 10,000 in lieu of the minimum balance
  • The bank offers a higher rate of interest than most other banks for similar slabs of balance. Accounts with balance up to Rs. 1 lakh earn 6.25% per annum and those with balance between Rs. lakh and Rs. 10 lakh earn 7.25%. This is as of March 2019
  • The Savings Ujjwal account comes with a RuPay Classic Secure Chip Debit Card
  • The daily ATM and POS limits is restricted to Rs. 20,000
  • Online money transfers such as RTGS, NEFT, IMPS are chargeable after 3 transactions
  • The bank offers a personal accident insurance cover of Rs. 1 lakh with the account

Savings Aditya

This savings account is ranked one step up the Savings Ujjwal.

Features

  • The account has a minimum average monthly balance of Rs. 5,000 and needs Rs. 7,500 to open the account
  • Accountholders can create and keep an FD of Rs. 25,000 if they want to forego the minimum balance requirements
  • The Savings Aditya account also comes with a RuPay Classic Secure Chip Debit Card
  • The limit on daily ATM and POS transaction is pegged at Rs. 40,000
  • Accountholders get 10 free ATM transactions on the bank’s own ATMs and up to 5 on other bank ATMs
  • The accountholder can access up to 10 free RTGS, NEFT or IMPS payment transfers
  • Like with the Ujjwal account, the Aditya offers a higher rate of interest

Note: Suryoday in its savings account page/tabs for each account clearly mentions that all bank’s savings accounts from Ujjwal to Savings Supreme can be opened on behalf of a minor

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
  • Suryoday Small Finance Bank Website: www.suryodaybank.com
  • Headquarters: Navi Mumbai, Maharashtra
  • Call Centre Number: 1800 266 7711