Union Bank of India vs ICICI Bank: Children’s Savings Accounts
Union Bank of India does not offer dedicated children’s account but instead offers minors the chance to have an account through its Regular Savings Account and Union Family Savings Scheme products. ICICI Bank also has two dedicated children’s accounts called the Young Stars Account and Smart Star Savings Account.
Children’s Savings Accounts from Union Bank of India
Union Bank does not offer a dedicated children’s account. However, minors can have accounts under its Regular Savings Account and Union Family Savings Scheme products. From a reading of the website, it seems minors can also open an account through parent or guardian under the Union Flexi Savings Deposit and Union Flexi Plus Savings Deposit schemes.
Regular Savings Account
The standard savings account from the bank.
- Can be opened by an individual for her child
- Just like adults, the child is entitled to receive a free chequebook of 20 leaves every year
- Allows students to keep the account with zero balance
Union Family Savings Scheme
A savings scheme under which up to 6 family members can open accounts.
- The average quarterly balance for the entire group is Rs. 1 lakh
- Each account holder gets up to 2 chequebooks per account
- They also can make up to Rs. 20,000 in pay orders or demand drafts each month
- Each account holder can make ATM withdrawal or POS transaction of Rs. 25,000 each per day
- Family members who can be included in the account are parents, grandparents, spouse, sibling and children
Union Flexi Account and Union Flexi Plus Savings Deposit
These two are higher end savings accounts, which also come with sweep facilities to put the excess money in a fixed deposit once the transaction limit crosses a specified limit. Though the Union Bank website does not specifically mention that the accounts are available for minors, it does say that individuals can open the account.
Children’s Savings Accounts from ICICI Bank Limited
India’s second largest private sector bank offers two dedicated children’s accounts called the Young Stars Account and Smart Star Savings Account.
Young Stars Account
The account can be opened by a parent or guardian for the child who is between the ages of 1 day old and 18 years
- The children get a debit card with per day limit of 2,500 for ATM and POS transactions (A caveat here: the wording on the site is not clear if the limit is Rs. 2,500 or Rs. 5,000 but the FAQs section of the account puts the limit as Rs. 2,500 (for withdrawal and spends?)
- The Young Star – Minor Under Guardianship Account has no transaction limit
- The card has a Zero Liability feature that protects against unauthorised transactions if the card is lost or misplaced provided the same is communicated to the bank within 15 days
- Kids can earn 1 reward point for every Rs. 200 spent on the card
- The minimum monthly average balance needed for the Young Stars Account is Rs. 2,500. The charges in case of non-maintenance of this minimum amount is 5% of the shortfall
- Parents can put in standing instructions to debit money directly from their account to the kid’s account
- The account has a Money Multiplier facility or the sweep in-sweep out option to put the money in a fixed deposit if the amount crosses a certain limit
Smart Star Savings Account
The account is available for kids above 10 years and up to 18 years of age to open and operate independently on their own. It comes in two options. More on the second point in the features below. Most of the features and fees and charges are same as the Young Stars Account
- The account comes in two variants – with guardian consent and without guardian consent. In the former case, the account will have a limit of Rs. 2 lakh on debit transaction every fiscal. If the account does not have guardian consent, this limit is Rs. 50,000
- Accountholders get a debit card with per day limit of 5,000 each for ATM and POS transactions
- As with Young Stars Account, the card for Smart Star Savings Account has the Zero Liability feature that insures against unauthorised transactions if the card is lost, stolen or misplaced if the bank is told of the same within 15 days
- Even here, the child earns 1 reward point for every Rs. 200 spent through the card
- The minimum monthly average balance is also same at Rs. 2,500 and so are the fees for non-maintenance of this minimum amount
- Union Bank of India Website: www.unionbankofindia.co.in and www.unionbankonline.co.in (net banking)
- Headquarters: Mumbai, Maharashtra
- Call Centre Number: 1800 208 2244, 1800 22 2244
- ICICI Bank Website: www.icicibank.com
- Headquarters: Mumbai, Maharashtra
- Call Centre Number: 1800 200 3344, 1800-103-8181 (Private Banking). Has specific number for different cities