SBI offers saving bank account facility for Children: Read eligibility, benefits, and other details

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New Delhi:  To promote healthy financial habits among Children, India’s largest bank the State Bank of India (SBI) provides two types of saving accounts for Children. They are known as ‘Pehla Kadam’ and ‘Pehli Udaan’. Good financial skill is very important in life. It’s better to have a habit of saving since Childhood. These accounts are open at Zero balance, meaning the accountholder doesn’t need to keep any minimum balance in the account at any particular given time.

However, the maximum amount you can deposit in the accounts is Rs 10 lakhs, which is more than enough for children. Besides, these accounts provide net banking and mobile banking facility that play important role to understand the nuances of personal finance.

SBI mentioned on the website that they are complete bouquets of banking products, that will not only help children learn the importance of saving money but will also allow them to experiment with the ‘buying power’ of money.

“Both the Savings Accounts are fully loaded; replete with banking features like Internet Banking, Mobile Banking, etc. which will not just acquaint children with the different channels of modern-day banking but also teach them the nuances of personal finance. All these features come with 'per day limits' to ensure that they spend the money wisely.” It added.

Let’s understand both types of account in details below

Phela Kadam

This account can be open for minor of any age. The account will jointly be opened with Parent/Guardian. Moreover, it can be operated jointly only with parent/guardian or singly by Parent/Guardian.

Benefits -

1. Cheque books are available
2. Child’s photo embossed ATM-cum-Debit card with witdrawl limit of Rs 5000/-. But the card will be issued in the name of the minor and Guardian.
3. Mobile banking facility provides viewing rights and limited transaction right like: Bill payment, Top ups. Per day transaction limit of Rs. 2,000/-

Pheli Udaan

To give more financial freedom to children, Pheli Udaan account can be opened for minors above the age of 10 who can sign uniformly. And it will be singly operated by minor itself.

Benefits -

1. Cheque-books are available
2. Photo embossed ATM-cum-Debit with withdrawal/POS limit of Rs. 5,000/- will be issued in the name of the minor
3. Mobile banking facility with with viewing rights and limited transaction right like - Bill payment, Top ups, IMPS. Per day transaction limit of Rs. 2,000/-