These days you don’t have to wait till your child turns 18 to let them experience using their own savings account as many banks have accounts aimed specifically at children.
This is all thanks to the Reserve Bank of India (RBI) allowing banks to offer savings accounts to minors above the age of 10 that they can operate themselves
Minors above 10 years of age can open and operate independently savings bank account and use other facilities like ATM and cheque books. The minors who have attained 10 years of age, would be allowed to open and operate savings bank accounts independently.
Having a kid’s savings account is like having a bigger piggy bank, where the money will be safe and can earn interest on the same.
Since then we have seen many banks launch or even tweak their already existing minor accounts. For instance, ICICI Bank has its Young Stars Account, State Bank of India has PehlaKadam and PehliUdaan, HDFC Bank has Kids Advantage Account, and Union Bank of India has its Youth Banking Accounts. You can even open minor accounts for children below the age of 10 years.
Familiarize your child with the importance of a PIN, username, passwords, mobile OTP etc… Take your child along with you while visiting the bank to open the account and handhold them while accessing Internet banking for the first time. You could also get them to fill out the know-your-customer detail forms for the account, at least the parts that they can fill.