Most children tend to repeat habits learned in childhood throughout their lives. Therefore, financial literacy, money management, savings and investments must be introduced during their growing years. With 100% digital banking, parents can not only complete bank account opening online but also introduce their children to formal banking by opening a minor bank account.
Why open a minor bank account?
A minor bank account serves multiple purposes beyond simply parking money. It educates children about the value of saving by giving them a place to deposit allowances, gift money, or earnings from small tasks. Watching their balance grow through interest credits helps them understand how money works and introduces the concept of passive income.
It can also serve as an account to save for your child’s future expenses, such as education, extracurricular activities, or milestone purchases. Many parents opt for a minor bank account to regularly transfer funds that accumulate over the years, creating a corpus.
Eligibility and guardian requirements
Parents can open a minor bank account for children under 18. The account is opened in the child’s name, with a parent or legal guardian operating it on the child’s behalf until the child turns 18.
For bank account opening online at any leading bank, the parent or guardian must hold a savings account with the bank. If you do not have an account in the same bank, you can open both accounts simultaneously during the application process.
This requirement ensures that the guardian has completed KYC verification and that the bank can link the minor’s account to an adult who will oversee it.
Required documentation
The bank account opening online process for a minor bank account requires specific documents for both the child and the guardian. These are
For the child:
- Birth certificate as proof of age
- Recent passport-size colour photographs
- Signature image for online applications
For the parent or guardian:
- Valid government-issued identity proof like Aadhaar, PAN, passport, voter ID, or driving licence
- Address proof
- Recent passport-size photographs
All documents need to be scanned and uploaded to the bank’s portal.
Step-by-step online opening process
Steps to opening a minor bank account online are:
- Step 1: Visit the bank’s website and navigate to the savings account section. Select the minor savings account option.
- Step 2: Enter your mobile number and receive an OTP for validation.
- Step 3: Fill in the application form with the child’s details and your details as the guardian.
- Step 4: Upload scanned copies of all required documents for both the child and the guardian.
- Step 5: Complete video KYC verification.
- Step 6: Once the account is activated, transfer funds.
Account features for minors
Minor bank account facilities include:
| Feature | Details |
| High interest rates | Up to 6.50% per annum, calculated daily and credited monthly |
| Free VISA debit card | Classic or Platinum options with personal accident insurance |
| No minimum balance requirement | No penalties for non-maintenance of average monthly balance |
| Sweep-out facility | Balances above ₹10,000 automatically transfer to a fixed deposit earning higher interest, if opted for |
| Digital access | Manage account through internet or mobile banking for transfers, bills, and monitoring |
Types of minor savings accounts
Typically, banks offer two kinds of minor accounts. These are:
- Minor Savings Account (Guardian-operated): This account is meant for younger children. It is completely managed by a parent or guardian.
- Minor Self-Operated Savings Account (ages 10–18): This account is especially designed for older children. The grown-up age group can learn to be responsible for operating the account independently within defined limits. It allows them to gain hands-on experience.
These options allow parents to choose a minor bank account that aligns with their child’s age and the level of financial exposure they are comfortable providing.
Getting started with a minor account
Opening a bank account for kids is now simple with online options. Most banks offer a paperless process that can be completed in a few minutes through digital onboarding and video KYC. With features such as easy account management via mobile apps, interest earnings, and flexible account types, a minor savings account provides a practical way to manage funds while introducing children to banking in their growing years.