Karur Vysya Bank vs Kotak Mahindra Bank: Children’s Savings Accounts

Karur Vysya Bank vs Kotak Mahindra Bank: Children’s Savings Accounts

Karur Vysya Bank offers two dedicated accounts for children called the Jumbo Kids Savings Account and the Student Savings Account. Kotak Mahindra Bank offers a dedicated account called Junior – The Savings Account for Kids.

Children’s Savings Accounts from Karur Vysya Bank

Karur Vysya Bank offers two dedicated accounts for children called the Jumbo Kids Savings Account and the Student Savings Account.

Jumbo Kids Savings Account

Unlike most other banks that offer children’s accounts for kids up to the age of 18 years or more, Karur Vysya offers this account for children below the age of 12 years. This by itself is something that makes this account special. Let us look at features too.

Features

  • The account is available for children up to the age of 12 years (we are repeating what we have written above but we like what the bank has done and so there)
  • There is no minimum balance requirement
  • The account is in the name of the child though the authorised signatory is the guardian
  • All cash withdrawals are to be done through the ATM and the bank offers a Visa ATM card for that purpose
  • One can send or use (remittance is the word used on the bank website) up to Rs. 50,000 per day at the branch
  • Children who open a Jumbo Kids Savings Account get a Jumbo (elephant) Doll
  • The account does not come with a chequebook and neither does it have online or mobile banking facilities

Student Savings Account

The second account offered by the bank for children. It is meant for kids who have go to school or college and offers facilities that are meant to help children with school fees and other education-related payments.

Features

  • The account can be opened by kids below 12 years of age through a guardian, while they can open and operate one on their own if they have reached the age of 12 years
  • The maximum age limit up to which one can have the account is 29 years
  • The ATM debit card can be used for cash withdrawals for free at Karur Vysya ATMs and up to 5 times for free at other ATMs of banks that belong to the National Financial Switch. There is an annual maintenance charge of Rs. 75 on the card
  • The chequebook is only offered to students after they have crossed 18 years of age
  • There is no limit on cash remittance at the base branch though it is capped at Rs. 10,000 at non-base branches for the Student Savings Account
  • An important thing to note here is that the total number of debit transactions on the account and any other linked accounts for the same person cannot be more than 90 for every six months

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.

Features

  • 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

Reference Facts

  • Karur Vysya Bank Website: www.kvb.co.in and www.kvbin.com (net banking)
  • Headquarters: Karur, Tamil Nadu
  • Call Centre Number: 1860 200 1916
  • Kotak Mahindra Bank Website: www.kotak.com
  • Headquarters: Mumbai, Maharashtra
  • Call Centre Number: 1860-266-2666, 1860-266-0811 (for 811 Digital Bank Customers)