Kotak Mahindra Bank vs DCB Bank: Children’s Savings Accounts

Kotak Mahindra Bank vs DCB Bank: Children’s Savings Accounts

Kotak Mahindra Bank offers a dedicated account called Junior – The Savings Account for Kids. DCB Bank does not offer a dedicated children’s account but instead offers its Classic savings account for children through parents or guardians.

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

Children’s Savings Accounts from DCB Bank

DCB Bank, known previously as Development Credit Bank, does not offer a dedicated children’s account though its Classic account may be available for children through their parents or guardian.

Classic Savings Bank Account

This is the standard savings bank account from the bank.

Features

  • Accountholders need to maintain a minimum balance of Rs. 5,000 for Tier I branches and Rs. 2,500 for Tier 2 branches. This amount may be less for accounts opened on behalf of minors. Details of the same are not provided clearly on the bank website and as with such instances it may be a good idea to call and ask customer care at the numbers below
  • The Classic Savings Bank Account offers payable at par cheque book
  • Accountholders also get unlimited free access to all the bank’s ATMs and Visa ATMs in India, provided the account has an average monthly balance of Rs.10,000
  • One of the key features seems to be free unlimited use of online transfers through RTGS and NEFT
  • Account holders also get complimentary internet, phone and mobile banking facilities, through the access is likely to be limited for the child directly unless they have reached a certain age, as happens with most banks

Reference Facts

  • Kotak Mahindra Bank Website: www.kotak.com
  • Headquarters: Mumbai, Maharashtra
  • Call Centre Number: 1860-266-2666, 1860-266-0811 (for 811 Digital Bank Customers)
  • DCB Bank Website: www.dcbbank.com
  • Headquarters: Mumbai, Maharashtra
  • Call Centre Number: 1800 209 5363, 1800 123 5363