State Bank of India vs TamilNad Mercantile Bank
SBI offers two children’s savings accounts, Pehla Kadam and Pehli Udaan while TamilNad Mercantile Bank provides dedicated savings account for children called the Little Super Star Savings Account.
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 TamilNad Mercantile Bank Limited
Tamilnad Mercantile Bank provides a dedicated savings account for children called the Little Super Star Savings Account.
Little Super Star Savings Account
Meant exclusively for kids in the 10-18 years age group, the account has been designed to habituate children to saving money.
- Accountholders can withdraw up to Rs. 5,000 per day through ATMs. Guardians are given the right to lower this amount up to Rs. 1,000 if she so deems fit. The POS limit is capped at Rs. 2,500
- Tamilnad Mercantile Bank offers up to 10 complimentary ATM withdrawals and charges Rs. 10 for each withdrawal thereafter
- The maximum amount that can be put in the account or taken out per month is limited to Rs. 1 lakh
- The account needs a minimum average balance of Rs. 250. The bank limits the number of facilities it provides if this minimum balance is not maintained
- The ATM-debit card is offered free with the account
- Accountholders get complimentary personalised chequebook of 10 leaves every year
- One of the unique features of this account is that the bank has allowed both internet banking and mobile banking though the limit has been capped at Rs. 2,500
- The minor has to change the Little Super Star Savings Account into any of the standard accounts offered by the bank after she attains majority
- Kids with the account are allowed to be a part of the bank’s Happy Family Banking Account scheme if their other family members also bank with Tamilnad Mercantile Bank
- 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)
- Tamilnad Mercantile Bank Website: www.tmb.in
- Headquarters: Tuticorin, Tamilnadu
- Call Centre Number: 1800 425 0426