The present generation has shown a rising trend in the average level of income of people and at the same time the average age group of individuals earning a decent salary has also dropped. Also with increasing level of education people are becoming more aware. Young parents these days are more conscious about educating their child about money and its management from a very early age.
Taking this mindset as an opportunity, many banks have come up with children's savings accounts. These accounts are directed specially for children and have thus been designed as per their needs and with proper control given to parents for the same.
Two broad aspects underlying such a type of account are that firstly these accounts educate a child on money management issues and aid in inculcating the habit of saving in him. Secondly, these accounts also prove to be a good mode of saving money by parents for future benefit of their children.
Characteristics of children's saving account
• Such accounts are directed solely for minors under the guardianship of their parents.
•Parents must have an account with the bank where the child's account is being opened.
•The account can be linked to the parents' account for a fixed amount of money being transferred to it at regular intervals for purposes like monthly pocket money.
•The account comes with complimentary passbook, cheque book as well as internet banking facility.
•Debit cards can also be given to the minor account holder but only on approval of parents.