Teenager's guide to financial freedom with a minor bank account

Did you know that developing good financial habits early in life can profoundly influence your future? Several reports and research at the University of Kansas indicate that individuals who start saving early are likelier to develop favourable associations with financial institutions and amass greater wealth.

The first step towards financial success begins with opening a minor bank account. And if you are under 18, imagine having the power to manage your money, achieve your goals, and build a robust financial foundation right from your teen years. 

Let's explore why you should open a minor bank account.

Reasons to open a minor savings bank account

• Develop financial discipline

Having your own savings bank account lets you learn the importance of budgeting, tracking expenses, and setting financial goals. It can serve as a tool to manage your allowance, earnings from part-time jobs, or monetary gifts, helping you become more responsible with money and develop financial discipline from an early age.

• Achieve future financial goals

Opening a minor bank account lets you work towards your financial goals early on. Whether for higher education or starting your own business, having a savings bank account can help you accumulate funds over time. Hence, regularly depositing money into your account will grow your savings steadily, bringing you closer to achieving your dreams.

• Learn the power of compound interest

Compound interest is a powerful concept that can work in your favour when saving money. With compounding of interest, you earn interest not only on the initial amount deposited but also on the interest already credited. Understanding and experiencing the benefits of compound interest will teach you a valuable lesson about long-term saving.

• Build an emergency fund

Life is full of uncertainties, and an emergency fund can provide peace of mind. You can start building an emergency fund by opening a minor bank account. Whatever comes your way, now, you are prepared with a safety net against any unforeseen circumstances.

Why IDFC FIRST Bank?
 

With the IDFC FIRST Bank Minor Savings Account, you can enjoy various benefits, such as -

• High-interest rate-
  
  

  With IDFC FIRST Bank, you can earn a high-interest rate of up to 7%  p.a, with interest credited to your account monthly. Your savings can grow with regular interest credits, helping you maximise earnings.

• No average monthly balance requirement-
  
  

   With no minimum monthly balance requirement on the Minor Under Guardian Account  you can focus on saving goals and manage money effectively.

• Sweep-out facility -
  
  

  The bank offers the sweep-out facility, which automatically transfers excess funds to a fixed deposit for higher interest rates.

• Unlimited free ATM transactions -
  
  

  You can enjoy unlimited free ATM transactions across India, conveniently accessing your funds anytime, anywhere.

Also read - Steps to open a minor Savings Account

​​To conclude

With an IDFC FIRST Bank Minor Savings Account, you gain access to a reliable banking partner that understands your needs. and start your financial journey on the right foot. Apply for your savings bank account online or visit the nearest IDFC FIRST Bank branch to complete the formalities

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.