State Bank of India vs Canara Bank
SBI offers two children’s savings accounts, Pehla Kadam and Pehli Udaan while Corporation Bank has Corp NewGen Account and Corp Saral Savings Account for children.
Let us look at each of these accounts. But first a note.
Note: The Indian Banking Industry is going through a phase of mergers and amalgamations. Nationalised banks are being combined to make bigger entities. Corporation Bank and Andhra Bank will merge with Union Bank of India with the surviving entity operating under the Union Bank name. So, even though it is likely that what the bank currently provides will remain same for some time, chances of accounts with similar objectives but of different banks being combined under a new scheme is highly probable after the dust settles.
Now back to topic.
Children’s Savings Accounts from SBI
This account is meant for all children and may be opened jointly with a parent or guardian.
- There are no minimum balance requirements in this account
- There is a limit of Rs. 5,000 on daily transactions. Transactions such as bill payments, prepaid mobile top-ups have a limit of Rs. 2,000 within the Rs. 5,000 limit
- SBI offers an auto-sweep option with this account called SBI Multi Option Deposit Scheme (MODS). If the accountholders opt for this, then any amount above Rs. 20,000 in the account is put in a term deposit. The MOD is initially for a sum of Rs. 10,000 and in Rs. 1,000 multiples thereafter. As is common for banks, there is no clarity on the website if the auto-sweep facility kicks in if the account has a balance of Rs. 30,000
- There is a cap of Rs. 10 lakh on the maximum balance in a Pehli Kadam account
- The kid is eligible to get a specially branded chequebook and passbook, and also a personalised debit card with her own photo
Note: The links to specific accounts may not work. The above data was taken from internet searches. We have put the links here in the hope that they work some day. Even the WayBack Machine shows an error when we tried to pull a page from July 5, 2017.
The account is meant for kids above 10 years of age. They are allowed to open and operate the account on their own.
- As mentioned, any child above the age of 10 years who can read and write, may open the account in her own name without the need for any parent or guardian
- Except for the age criteria, the other features of the Pehli Udaan account are same as for the Pehli Kadam account
Children’s Savings Accounts from Corporation Bank
The bank provides the Corp NewGen Account for students above 10 years of age and the standard Corp Saral Savings Account for minors to be opened jointly with a parent or guardian.
Corp NewGen Account
Targeted at young students.
- The account can be opened by any minor who is a student and over 10 years
- Can be opened with a minimum deposit of Rs. 100. The average quarterly balance is also Rs. 100
- Kids who open the Corp NewGen Account get a debit card, SMS and net banking facility, ability to make up to 5 drafts or postal orders a month and cheque collection facility for up to 2 cheques
Corp Saral Savings Account
The standard savings account available in the bank that can be opened by a representative of a minor.
- Parents or guardians can open the account on behalf of minors
- The average quarterly balance needed is Rs. 1,000
- As of July 2018, the bank offers an interest rate of 3.5% for a balance of less than Rs. 50 lakh and 4% for above that amount
- Some facilities that come with the Corp Saral Savings Account include chequebook, SMS, internet and mobile banking, online funds transfer facility, and so on
- State Bank of India Website: https://sbi.co.in and www.onlinesbi.com (net banking)
- Headquarters: Mumbai, Maharashtra
- Call Centre Number: 1800 425 3800, 1800 112 211, 1800 110 009 (pensioners only)
- Corporation Bank Website: www.corpbank.com
- Headquarters: Mangalore, Karnataka
- Call Centre Number: 1800 425 2407