Updated May 2026
Best Savings Accounts for Minors in India (2026)
Features, guardian rules, zero balance options, debit cards & complete comparison for children's bank accounts
Quick Recommendations at a Glance
Best Overall
SBI
Pehla Kadam / Pehli Udaan
Best Digital Banking
Kotak Mahindra
Kotak Junior Account
Best for Teenagers
HDFC Bank
Kids Advantage Account
Best Learning Features
ICICI Bank
Young Stars Account
Best Parent Controls
HDFC Bank
Kids Advantage Account
Best Interest Rate
AU Small Finance
Junior Savings Account
Opening a savings account for your child is one of the smartest early financial decisions a parent can make in India. A minor savings account introduces children to real money management, builds consistent saving habits, and gives parents full visibility and control over their child's finances — all within a safe, RBI-regulated framework.
Banks in India actively promote minor savings accounts because they represent long-term customer relationships. For parents, these accounts come with child-friendly debit cards, daily spending limits, parent monitoring tools, and financial literacy programs. In this complete guide, Arthzo compares the best minor savings accounts in India for 2026 across zero balance, features, guardian rules, and age-wise suitability.
Complete Comparison
Top Minor Savings Accounts Compared (2026)
Here is a side-by-side comparison of the best savings accounts for minors in India based on age limit, guardian requirements, debit card availability, and best-fit category:
| Bank & Account Name | Age Group | Guardian Required | Debit Card | Min. Balance | Best For |
|---|---|---|---|---|---|
| SBI Pehla Kadam | 0 – 10 years | Jointly operated | Yes (limited) | Zero Balance | Young children, beginners |
| SBI Pehli Udaan | 10 – 18 years | Guardian opens, child operates | Yes | Zero Balance | Teens, self-operated accounts |
| HDFC Kids Advantage | 0 – 18 years | Yes (jointly) | Yes (International) | ₹5,000 (AMB) | Teens, premium banking |
| ICICI Young Stars | 1 – 18 years | Yes | Yes | ₹2,500 | Financial literacy, teenagers |
| Kotak Junior Account | 0 – 18 years | Yes | Yes (digital) | ₹2,500 | Digital banking, app-based |
| Axis Future Stars | 0 – 18 years | Yes | Yes | ₹2,500 | Education-linked savings |
| AU Junior Savings | 0 – 18 years | Yes | Yes | ₹2,000 | High interest rate seekers |
Note: Minimum Average Balance (MAB/AMB) requirements are indicative for 2026 and may vary by location (urban/semi-urban/rural). Always confirm current terms on the bank's official website before opening an account.
Understanding the Basics
What Is a Minor Savings Account?
A minor savings account is a bank savings account opened in the name of an individual who is below 18 years of age. In India, individuals under 18 are legally classified as minors and cannot independently enter into financial contracts. As a result, minor savings accounts are typically opened and operated jointly with a natural or legal guardian — usually a parent.
Minor savings accounts function much like regular savings accounts — they earn interest, issue debit cards, support UPI and ATM withdrawals, and allow online banking. However, they come with protective restrictions: lower daily transaction limits, guardian-monitored access, and limited cheque facilities to ensure money safety for children.
These accounts serve a deeper purpose beyond banking: they are one of the most effective tools for building financial literacy and savings discipline in children from an early age.
Key distinction: SBI offers two separate minor account variants — Pehla Kadam (First Step) for children below 10 years, operated jointly with a guardian, and Pehli Udaan (First Flight) for children aged 10–18, which allows limited self-operation by the minor.
Parental Responsibility
The Role of a Guardian in a Minor Savings Account
A guardian plays a central and legally required role in operating a minor savings account in India. Understanding this role clearly helps parents manage these accounts correctly and protect their child's financial interests.
Guardian Responsibilities
- Opening the account & completing KYC
- Providing identity proof for both minor & self
- Authorising large withdrawals
- Monitoring transactions via net banking
- Setting daily spending limits on debit card
- Approving online banking permissions
- Adding and managing nominee details
- Initiating account conversion at age 18
Types of Guardians
- Natural Guardian — biological father or mother (most common for minor accounts)
- Legal Guardian — court-appointed guardian in cases of parental absence or incapacity
- Testamentary Guardian — appointed through a parent's will
Why a Guardian Is Legally Mandatory
- Minors cannot enter legal financial contracts in India
- Banks require an adult to be legally liable for the account
- Protects the minor from financial exploitation
- Ensures accountability for transactions in the account
- Required under the Indian Contract Act, 1872
Self-operated accounts: Once a minor turns 10 years old, most banks (including SBI, HDFC, and ICICI) allow the child to independently operate their account — make withdrawals, use the debit card, and access net banking — within set daily limits. The guardian still retains oversight and must be present for account modifications.
The Bank's Perspective
Why Banks Actively Promote Minor Savings Accounts
Minor savings accounts are not just a goodwill gesture from banks — they are a calculated long-term customer acquisition strategy. Understanding this helps parents make more informed decisions when a bank promotes a minor account aggressively:
Early Customer Acquisition
A child who starts banking with SBI or HDFC at age 5 often stays with the same bank for life — salary account, home loan, and investments included.
Family Banking Ecosystem
Minor accounts pull the entire family into the bank's fold — parents often shift salary accounts, FDs, insurance, and loans to the same bank.
Cross-Selling Pipeline
Today's minor is tomorrow's education loan, credit card, and mutual fund customer. Banks build this pipeline deliberately.
Financial Literacy Branding
Banks gain goodwill and trust by associating their brand with responsible financial education for children.
Digital Banking Adoption
Children who grow up using a bank's app become comfortable with its digital ecosystem — creating loyal, low-cost digital customers.
Low-Cost Deposits
Minor accounts collectively represent low-cost, stable deposits for banks, even if individual balances are small.
What You Get
Facilities Available in Minor Savings Accounts
Minor savings accounts in India come with a comprehensive set of banking facilities, most of which are adapted with child-appropriate restrictions:
Debit Card
Child-specific RuPay or Visa debit card with daily spending limits (typically ₹2,000–₹5,000/day)
Zero / Low Balance
SBI offers zero balance; HDFC, ICICI, Kotak require ₹2,500–₹5,000 minimum average balance
Mobile & Net Banking
Parent monitors and controls via the bank's main app; older minors may get limited login access
ATM Withdrawals
Capped daily withdrawal limit (₹2,000–₹5,000) to ensure controlled cash access for children
UPI Access
Restricted in most banks for minors; available in limited form with guardian approval at some banks
Passbook & e-Statements
Physical passbook available; digital e-statements sent to parent's registered email
Auto-Save / Goal Saving
Set automatic transfers for birthday money, pocket money deposits, and savings goals
Parent Alerts
SMS/app notifications sent to parent for every transaction, ensuring real-time monitoring
Pocket Money Transfer
Parents can schedule recurring weekly/monthly pocket money transfers from their account
FD / RD Linking
Link recurring deposits or fixed deposits in the child's name to build long-term savings
Financial Literacy Tools
ICICI and Kotak offer gamified financial education modules within their junior banking apps
Cheque Book
Available for accounts operated jointly; typically not issued for self-operated minor accounts
Age-Wise Rules
Age Rules for Minor Savings Accounts in India
RBI guidelines and individual bank policies define distinct rules based on the minor's age. Here is how banking rights evolve as a child grows:
0–9
yrs
yrs
Guardian-Operated Account (Joint Mode)
The account is opened and operated entirely by the guardian. The minor's name appears on the account but the child cannot independently transact. All withdrawals, transfers, and debit card usage are controlled by the parent. SBI Pehla Kadam is designed specifically for this age group.
10–17
yrs
yrs
Limited Self-Operation Permitted
Once a minor turns 10, most banks allow the child to operate the account independently within set daily limits — typically ₹2,000–₹5,000 per day. The minor can use the ATM card, access net banking, and initiate transfers. However, the guardian must still authorise account modifications, cheque books, and higher transactions. SBI Pehli Udaan covers this age bracket.
18 yrs
Mandatory Conversion to Regular Savings Account
On the minor's 18th birthday, the bank freezes the account and requires the now-adult to complete fresh KYC — Aadhaar, PAN, a recent photograph, and a new signature specimen. The account is then converted into a full regular savings account with no restrictions. The account number, IFSC, and existing balance remain unchanged through this process.
Your Rights Under RBI
RBI Rules for Minor Savings Accounts
The Reserve Bank of India has issued specific guidelines for minor savings accounts to protect children's financial interests and clarify banking obligations:
| RBI Rule | What It Means for Parents & Minors |
|---|---|
| Guardian KYC is Mandatory | The guardian must submit full KYC documents (Aadhaar + PAN + address proof) at account opening. The minor's Aadhaar and birth certificate are also required. |
| Self-Operation After Age 10 | Per RBI's Master Circular on Customer Service, banks may allow minors aged 10 and above to independently operate savings accounts within defined limits set by the bank. |
| Account Conversion at Age 18 | Banks must convert the minor account to a regular account upon the minor attaining majority. The minor must complete fresh KYC as a new adult customer. |
| No Overdraft Facility | Minor savings accounts cannot be offered overdraft or credit facilities under RBI guidelines. The account must remain in credit at all times. |
| Nominee Facility | A nominee can be registered on a minor's account by the guardian. The nominee is typically the guardian themselves. |
| PAN / Form 60 Rules | If annual credits to a minor's account exceed ₹2.5 lakh, the bank may require the guardian to submit PAN. For smaller accounts, Form 60 is accepted. |
| Dormant Account Rules | Minor accounts inactive for 2 years are classified as dormant. Reactivation requires guardian visit and fresh KYC. Banks cannot levy excessive charges on dormant minor accounts. |
Detailed Reviews
Best Minor Savings Accounts by Category
Best Overall Minor Savings Account
SBI – Pehla Kadam & Pehli Udaan
⭐ Best Overall
💰 Zero Minimum Balance
🏦 Largest Bank in India
🌾 Rural & Remote Coverage
📲 YONO Kids App
📮 India Post Integration
🎓 Financial Literacy
Why we recommend it: SBI's dual-track minor account system is the most practical for Indian families — zero balance means no penalty risk, and two separate variants (Pehla Kadam for young children, Pehli Udaan for teens) ensure age-appropriate features. SBI's unmatched branch network makes this the most accessible minor account across urban and rural India alike.
Best Digital Banking Experience for Minors
Kotak Mahindra Bank – Kotak Junior Account
📱 Best Digital Banking
📲 Dedicated Kotak Junior App
🎮 Gamified Savings Goals
💳 Child-Themed Debit Card
🔔 Real-Time Parent Alerts
💰 Pocket Money Scheduler
📊 Spending Insights
Why we recommend it: Kotak Junior is the best digital banking experience for minors in India. The dedicated Kotak Junior app gamifies saving goals, provides spending insights, and lets parents schedule pocket money transfers — all in one place. The child-themed debit card makes banking exciting for young users, and real-time transaction alerts keep parents informed at all times.
Best Minor Account for Teenagers (13–18 Years)
HDFC Bank – Kids Advantage Account
🧑 Best for Teenagers
🌍 International Debit Card
👨👩👧 Strong Parent Controls
📚 Educational Scholarship Tie-ups
🎁 Shopping & Entertainment Offers
💳 Customisable Spending Limits
🔗 Link to Parent's HDFC Account
Why we recommend it: HDFC Kids Advantage is the premium choice for teenagers. Its international-enabled debit card is useful for teens studying abroad or making online purchases on global platforms. Parents get granular control over spending limits and can link the account directly to their own HDFC account for seamless pocket money transfers. The scholarship and education tie-ups add genuine value beyond basic banking.
Best Minor Account for Financial Learning
ICICI Bank – Young Stars Account
🎓 Best Learning Features
📚 Financial Literacy Modules
🎯 iWish Flexible RD
💰 Saving Goal Tracker
📲 Young Stars App Access
🔔 Parent Transaction Alerts
🎨 Personalised Debit Card Design
Why we recommend it: ICICI Young Stars stands out for its financial literacy integration. The iWish flexible recurring deposit tool allows children to save towards specific goals — a bicycle, a gadget, a school trip — with flexible monthly contributions. This combination of goal-based saving and educational content makes it the best minor account for teaching real money management values to children aged 6 and above.
Best Minor Account for Female Students
👧 Top Pick: Female Students
SBI Pehli Udaan + SBI Mahila Savings Account Upgrade
For female students aged 10–18, SBI Pehli Udaan is the best starting point — zero balance, self-operable, and widely accessible. When the minor turns 18, she can seamlessly convert into SBI's Mahila Savings Account (women savings account) with women-specific benefits including insurance and lifestyle perks — all within the same bank ecosystem.
Best Government Bank Minor Account
🏛️ Top Pick: Government Bank
SBI Pehla Kadam / Bank of Baroda Minor Account
For parents who prefer the security of a public sector bank, SBI is the clear leader with its Pehla Kadam and Pehli Udaan accounts. Bank of Baroda also offers a well-structured minor savings account with zero balance and basic debit card features, especially strong in semi-urban and rural areas. Both are covered under DICGC insurance up to ₹5 lakh per depositor.
Getting Started
Documents Required to Open a Minor Savings Account
Opening a minor savings account requires documents for both the child and the guardian. Here is the complete checklist:
📄 Documents for the Minor (Child)
- Birth Certificate (municipal / hospital issued)
- Aadhaar Card of the minor (if issued)
- School Identity Card (for children 5+ years)
- Passport-size photograph (2 copies)
- PAN Card (if annual credits exceed ₹2.5 lakh)
📄 Documents for the Guardian (Parent)
- Aadhaar Card (mandatory)
- PAN Card (mandatory)
- Address Proof (Voter ID / Passport / Utility Bill)
- Passport-size photograph (2 copies)
- Proof of guardianship (for legal guardians only)
Tip for young children: For infants and very young children who do not yet have an Aadhaar card, the birth certificate alone is sufficient as proof of minor's identity and date of birth at most banks, including SBI and HDFC.
Step-by-Step Process
How to Open a Minor Savings Account in India
While some banks allow partial online application, most minor savings accounts require a branch visit for guardian verification. Here is the complete process:
-
1Choose your bank and account type — based on your priorities (zero balance → SBI, digital features → Kotak, premium → HDFC, financial learning → ICICI). Visit the bank's official website to read the current terms and charges before visiting.
-
2Collect all documents — gather the minor's birth certificate, Aadhaar (if available), school ID, and your own KYC documents (Aadhaar + PAN + address proof + photographs for both).
-
3Visit the nearest branch with the child — most banks require the minor to be physically present at account opening, especially for children aged 5 and above, for photograph and signature (or thumb impression) purposes.
-
4Fill the account opening form — complete the minor savings account form specifying the account type (self-operated or jointly operated), nominee details (typically the guardian), and net banking/debit card preferences.
-
5Complete guardian KYC in-branch — the branch officer verifies the guardian's original documents against the copies submitted. Both guardian and minor (if old enough) sign the form.
-
6Make the initial deposit (if required) — deposit the minimum balance (₹2,500 for HDFC/ICICI/Kotak; zero for SBI) in cash or by transfer. Request a passbook at this stage.
-
7Set up net banking and debit card — activate mobile alerts to the parent's registered mobile number. The child's debit card will be dispatched within 5–7 working days. Set a parent-controlled daily transaction limit immediately upon card activation.
⚠️ Important: Do not open a minor savings account online via unofficial third-party websites or agents. Always use the bank's official website or visit a branch directly to avoid fraud.
Know the Costs
Charges in Minor Savings Accounts
While minor accounts are positioned as child-friendly, some charges still apply. Understanding these helps parents avoid penalties:
| Charge Type | SBI | HDFC | ICICI | Kotak |
|---|---|---|---|---|
| Min. Balance Penalty | Nil (Zero Balance) | ₹150–₹500/month | ₹100–₹400/month | ₹100–₹400/month |
| Debit Card Annual Fee | ₹100–₹175 + GST | ₹150–₹250 + GST | ₹150 + GST | ₹125–₹199 + GST |
| ATM Charges (beyond free) | ₹10–₹20/txn | ₹21/txn | ₹21/txn | ₹20/txn |
| SMS Alerts | ₹15/quarter | ₹15/quarter | ₹15/quarter | ₹15/quarter |
| Account Conversion Fee (at 18) | Nil | Nil | Nil | Nil |
| Passbook Reprint | ₹50 + GST | ₹100 + GST | ₹100 + GST | ₹75 + GST |
⚠️ Hidden charges to watch: Debit card replacement (₹200–₹400), account dormancy reactivation fees, and duplicate passbook charges are often not highlighted during account opening. Request the full Schedule of Charges from the branch before signing up.
Balanced View
Pros and Cons of Minor Savings Accounts
Pros
- Builds financial literacy from childhood
- Teaches savings discipline early
- Parents get full transaction monitoring
- Child gets hands-on banking experience
- SBI offers zero balance — no penalty risk
- Debit card teaches controlled spending
- FD/RD can be linked for long-term saving
- DICGC-insured up to ₹5 lakh per depositor
- Seamless conversion to regular account at 18
Cons
- Guardian dependency — cannot open independently
- Lower daily transaction limits can be restrictive
- UPI access restricted or absent at most banks
- No overdraft or credit facility allowed
- HDFC/ICICI/Kotak require ₹2,500–₹5,000 minimum balance
- Branch visit typically mandatory at account opening
- Some features unavailable below age 10
How They Compare
Minor Account vs Regular Savings Account
| Feature | Minor Savings Account | Regular Savings Account |
|---|---|---|
| Eligibility | Below 18 years | 18 years and above |
| Guardian Required | Yes (mandatory) | No |
| Legal Authority | Limited (guardian controls) | Full (account holder controls) |
| Daily Transaction Limit | Lower (₹2,000–₹5,000) | Higher (₹50,000–₹1 lakh+) |
| UPI Access | Restricted / Limited | Full access |
| Overdraft Facility | Not permitted | Available (subject to eligibility) |
| Cheque Book | Limited / guardian-operated only | Full cheque book facility |
| Interest Rate | Same as regular savings | Standard rate |
| Parent Monitoring | Built-in alerts & controls | Not applicable |
| Account Conversion | Mandatory at 18 (fresh KYC) | Not required |
Frequently Asked Questions
Minor Savings Account FAQs
Can a child open a savings account in India?
Yes. Any Indian child — from birth to 17 years — can have a savings account in their name. For children below 10, the account is jointly operated by a guardian. Children aged 10 and above can operate their accounts independently with limited daily transaction limits, depending on the bank's policy.
Which bank is best for a minor savings account in India?
SBI (Pehla Kadam / Pehli Udaan) is the best overall — it is zero balance, highly accessible, and available in rural and urban India. For digital banking, Kotak Junior is the top choice. HDFC Kids Advantage is best for premium features and parental controls. ICICI Young Stars leads in financial literacy and goal-based savings tools.
Is a guardian mandatory for a minor savings account?
Yes, a guardian is mandatory during account opening for all minors. For children below 10, the guardian jointly operates the account. For minors aged 10 and above, most banks allow limited self-operation — but the guardian's presence is still required for account modifications, KYC changes, and cheque facility requests.
Can minors use UPI in India?
UPI access for minors is restricted at most banks. Since UPI requires a linked mobile number and bank account with full transaction authority, most banks do not enable UPI for minor accounts due to RBI's age-based restriction norms. Some banks provide limited UPI access for self-operated accounts of minors aged 15 and above — check with your bank for current policy.
Can a minor get an ATM or debit card?
Yes, most banks issue a debit card for minor savings accounts. The card comes with a parent-set daily limit (typically ₹2,000–₹5,000). SBI, HDFC, ICICI, and Kotak all issue debit cards for minors. For children below 10, the guardian primarily uses the card. Children 10 and above can use it independently within the set limit.
What happens to a minor account when the child turns 18?
When the minor turns 18, the bank freezes the account and sends a notice requesting conversion to a regular savings account. The now-adult must visit the branch (or complete online process, if available) with fresh KYC — Aadhaar, PAN, photograph, and new signature specimen. The existing account number, IFSC code, and full balance remain unchanged. The guardian's access is removed after conversion.
Are minor savings accounts zero balance?
Not all minor savings accounts are zero balance. SBI's Pehla Kadam and Pehli Udaan accounts are zero balance — the most accessible option for Indian families. HDFC Kids Advantage requires ₹5,000 AMB, while ICICI Young Stars and Kotak Junior require ₹2,500. If avoiding minimum balance is a priority, SBI is the clear choice.
Can a student independently operate a minor savings account?
Yes, students aged 10 and above can independently operate their minor savings accounts at most banks, including SBI (Pehli Udaan), HDFC, and ICICI. This includes ATM withdrawals, net banking, and debit card transactions — within the daily limit set by the guardian. Modifications like address change or cheque book request still require guardian presence.
Can parents monitor their child's bank account transactions?
Yes. All major banks provide real-time SMS and app-based transaction alerts to the parent's registered mobile number. HDFC, ICICI, and Kotak additionally allow parents to set daily spending limits, restrict merchant categories, and freeze/unfreeze the debit card via the bank's mobile app — giving complete oversight of the child's banking activity.
What is the minimum age to open a minor savings account?
There is no minimum age requirement — a minor savings account can be opened for a newborn child in India. SBI Pehla Kadam specifically targets children from birth to 10 years. ICICI Young Stars accepts minors from 1 year of age. All banks require the guardian to operate jointly for children below 10 years.
What is the daily transaction limit for minor savings accounts?
Daily transaction limits for minor savings accounts are set by the bank and/or the guardian. Typically: ATM withdrawals are capped at ₹2,000–₹5,000 per day, and debit card POS transactions at ₹2,000–₹10,000 per day. Parents can usually lower these limits further via the bank's mobile app. Net banking transfers for jointly operated accounts require guardian authentication.
Can I open a minor savings account online without visiting a branch?
Most banks require at least one branch visit for guardian KYC verification when opening a minor savings account, as document originals must be physically verified. However, Kotak and some digital banks are moving towards video-KYC-based minor account opening. Check your preferred bank's website for the latest process before planning a branch visit.
Is a minor savings account insured?
Yes. Minor savings accounts at scheduled commercial banks in India are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC) up to ₹5 lakh per depositor per bank. This means if the bank fails, the child's deposits up to ₹5 lakh are fully protected.
Can a minor savings account earn interest?
Yes, minor savings accounts earn the same interest rate as regular savings accounts at the same bank. As of 2026: SBI offers 2.70% p.a., HDFC 2.75%–3.50%, ICICI 3.00%–3.50%, Kotak 3.50%–4.00%, and AU Small Finance Bank up to 7.25% p.a. Interest is credited quarterly to the account.
What is the difference between Pehla Kadam and Pehli Udaan?
Both are SBI minor savings accounts but designed for different age groups. Pehla Kadam (First Step) is for children below 10 years and is operated jointly with the guardian — the child cannot independently transact. Pehli Udaan (First Flight) is for minors aged 10–18 years and allows limited self-operation, including independent ATM and debit card usage within set limits.
Explore More on Arthzo
Related Pages You May Find Useful
| Page | What You Will Learn |
|---|---|
| Best Savings Accounts in India | Compare top savings accounts across all categories and age groups |
| Best Women Savings Accounts in India | Top savings accounts for women, housewives, and female students |
| Best Zero Balance Savings Accounts | All zero-balance savings account options available in India |
| RBI Rules for Savings Accounts | Your rights as a savings account holder under RBI guidelines |
| Hidden Banking Charges Explained | Debit card fees, ATM charges, and charges you did not know about |