It's time your child had a Savings Account. Here's why

Want your child to grow up to be a financially responsible adult? Then, start now! Learning to plan, budget, and save money is just as important as what your child will learn in school. And the best way to set them on the right path is by helping them open a savings bank account.

Having a savings account can teach them about saving and managing money effectively to achieve their goals and other nuances of personal finance. Additionally, a savings account designed especially for children like IDFC FIRST Bank's Minor’s Savings Accounts enable parents to invest regularly and save for their future. 

Benefits of opening a Savings Account for your child
 

There are a number of reasons to open a Minor's Savings Account for your child

1. Respecting the value of money
 

Children may not understand the importance of earning and saving. By teaching them to deposit their allowance or gift money into a savings account and use it when needed, your child will understand the value of money and appreciate everything you do for them.

2. Learning to manage own finances
 

A savings bank account can help your child understand how to manage their finances. They will learn how to plan, budget, and handle money in everyday life. They will also receive first-hand knowledge on how to bank – whether online banking, depositing a cheque, or withdrawing cash from an ATM. You can even take their financial education one step further and teach them to leverage certain savings tools, such as fixed and recurring deposits. 

3. Appreciating 'delayed gratification'
 

Savings accounts can also impart the crucial value of delayed gratification. By urging kids to save, they can learn to resist the temptation of impulsively spending in favour of a better, greater reward later. This value will hold them in good stead all their life. 

4. Inculcating a goal-based savings habit
 

Learning how to save for each life goal can lay the foundation for a financially stable and secure future. A savings account is the first step that can help kids start small. They can learn to save for various goals, such as a shopping expedition at the mall, a cycle, a school trip, gifts for friends and family, etc.

5. Learning the power of compounding
 

With their money accruing interest in their savings account and growing with the principal amount, your child can experience the power of compounding. This will motivate them to save more dedicatedly and create wealth as they grow into adults. 

Saving for the Future: Lastly, and most importantly, a savings account for your child is an excellent way to save for their future. You, as a parent, can deposit money periodically that will grow exponentially over the years. 

How to open a Savings Bank Account for a child
 

A lot of banks offer savings accounts for minors. It is essential to research, evaluate, and choose a bank that best suits your needs based on the interest rate offered, accessibility, and other features that make banking easy for your child. 

Opening a Minor's Savings Account for your child is relatively straightforward. Start by filling out the application form with your child as the primary account holder and a parent or legal guardian as the joint account holder. Many banks, including IDFC FIRST Bank, have a simple online account opening process for minors. 

You will have to submit minimal documentation, such as your child's birth certificate, your own identification documents, such as PAN and Aadhaar, and photographs for both of you and any other document as required by the respective bank. The savings account can be active in a few days, ready for your child to start banking.

IDFC FIRST Bank offers two smart savings options for minors.

• For children under 18, the IDFC FIRST Bank Minor’s Savings Account (Under Guardian) requires no minimum balance and includes features like competitive interest rates, sweep-in/sweep-out, and unlimited IDFC FIRST Bank ATM access.
• For those aged 10 to 18, the self-operated FIRST Prodigy Account encourages early financial independence with a ₹10,000 monthly balance, a Visa Platinum Debit Card, and only guardian’s KYC—no existing IDFC FIRST Bank account needed.

It is never too early to start your child on a journey of financial literacy. Opening a savings account is one of the best gifts you can give them. IDFC FIRST Bank offers a Minor Savings Account just for this purpose. With up to 7.00% interest rate, free unlimited fund transfers, this savings account is the perfect choice as a starter for your child. So start their journey today.