The State Bank of India (SBI) has introduced two savings accounts that are tailored for children who are under 18 years of age. One of the plans will take care of children of any age under 18 while the other plan will cater to children above 10 years of age. The saving plans are called Pehla Kadam and Pehla Udaan respectively. These plans are aimed at helping children value and understand the concept of savings and will also enable greater experimentation in terms of purchasing power.
Both savings accounts come with features like mobile banking and internet banking in order to help children become familiar with modern day banking channels and learn more about personal finances. These features have limits on a per day basis in order to ensure that kids spend their money in a more judicious manner. Rs.5,000 is the transaction limit for both these accounts on a daily basis. The Pehla Kadam plan will have accounts jointly opened with the guardian/parent and the Pehla Udaan plan will have the account in the name of the minor who will operate it.
In case of metro customers, the average balance requirement on a monthly basis is Rs.5,000 while for urban customers it stands at Rs.3,000. This stands at Rs.1,000 for rural and semi-urban customers. Rs. 10 lakh is the maximum balance limit for both these accounts. The interest rates will be calculated on a daily basis akin to savings bank accounts. Accounts can be transferred to any SBI branch without the account number being changed. The accounts also come with the nomination facility and SBI is recommending usage of the same.