SBI Kids Savings Account of two categories – Pehla Kadam and Pehli Udaan. These accounts help prepare your little ones for a sound financial future, besides inculcating the habit of saving money early. These blog briefly tells about features of opening SBI Kids Saving Account at an early age, fees charged, services that we can get in the account and what all documents are required to open a account in SBI for Kid’s.
Benefit of using SBI Kids Savings Account –
- Financial Education: It teaches children about money management, saving, and basic financial concepts from an early age.
2. Instills Saving Habits: Having a bank account encourages regular saving, fostering a lifelong habit of financial responsibility.
3. Safety and Security: Funds are kept in a secure place, reducing the risk of loss or theft compared to keeping cash at home.
4. Interest Accumulation: Some accounts accrue interest, helping savings grow over time and providing a valuable lesson in the power of compound interest.
5. Preparation for the Future: Early exposure to banking lays the foundation for responsible financial decision-making as children grow into adults.
6. Access to Digital Banking: Children become familiar with digital transactions and online banking, essential skills in today’s technology-driven world.
Link to open SBI Kids Saving Account : https://sbi.co.in/web/personal-banking/accounts/saving-account/savings-account-for-minors
Features and Benefits Of SBI Kids Savings Account
- SBI offers two schemes for minors known as PehlaKadam and PehliUdaan.
- No minimum balance required.
- Can be opened jointly with parents or guardians.
- Transfer the account to any SBI Branch without changing the account number.
- Nomination facility available.
- Interest is calculated on the daily balance at 4% p.a.
- Photo ATM cum debit card with withdrawal/POS limit of Rs. 5,000.
- Specially designed branded passbook and cheque book issued free of cost.
- Smart Scholar – Child Plan can be availed with inbuilt premium waiver and loyalty additions to fulfil your child’s dreams.
Here is all you need to know about SBI’s Pehla Kadam, Pehli Udaan saving accounts for children
| Features | PehlaKadam | PehliUdaan |
| Age limit | Minors of any age | Minors above the age of 10 |
| Operation | Jointly with parent/guardian | Independently |
| Minimum Balance | Not required | Not required |
| Maximum balance | Rs. 5 lakhs (Rs. 10 lakhs aggregate deposit) | Rs. 5 lakhs (Rs. 10 lakhs aggregate deposit) |
| Overdraft facility | Overdraft against Fixed deposits for parent/guardian or two months’ salary in case of Corporate Salary package | Not available |
| Insurance options | Personal Accident Insurance Cover (offered by SBI General) for the Parent | Not available |
Fees and charges
| Issue of Pass book | Nil |
| Duplicate Pass book/Statement | Rs.112/- with latest balance |
| Balance enquiry | Nil |
| Transfer of Account | Rs.112/-(inclusive of postal charges). |
KYC Requirements
- PehlaKadam
- Date of Birth proof of the minor + KYC of the Parent.
- PehliUdaan
- Date of Birth proof of the minor + KYC of the Parent.
Services With SBI Kids Savings Account
| Internet Banking | Yes. Limited rights with transaction limit of Rs. 5,000 per day. |
| Mobile banking | Yes. Limited rights with transaction limit of Rs. 2,000 per day. |
| Auto sweep facility | Yes. Excess of Rs. 20,000 will be invested in fixed deposits in multiples of Rs. 1,000 subjects to a minimum of Rs. 10,000. |
| Standing instructions | One standing instruction for recurring deposits free of cost. |
Documents Required for opening SBI Kids Savings Account
- Date of Birth proof of the Minor
- KYC of the Parent
Other Features
- Interest rate as applicable to Savings Bank A/c calculated on a daily balance
- Transferability of accounts to any SBI Branch without changing the account number.
- Nomination facility is available and recommended.
- Specially designed branded Passbook issued free of charge.
- Inter Core charges NIL for transfer transactions.
Here is a link about how to increase financial education of children across various age groups that might be useful for the kids to consider – https://financekaaksha.com/improve-financial-education-of-kids/