India’s biggest public sector bank – the State Bank of India (SBI) – is showing us that it is never too early to open a bank account in this country. The SBI has come up with two unique savings account options for children, ‘Pehla Kadam’ and ‘Pehli Udaan’.
The best thing about these accounts is that the account holders – in this case children – don’t need to maintain any minimum balance, which is otherwise mandatory for other savings accounts. There is, however, a daily spending limit to ensure that the minors can save money efficiently.
SBI’s Pehla Kadam account can be opened by children of any age, the Pehli Udaan account has been created for those who are above 10 years of age. Pehla Kadam can be jointly opened with a parent/guardian. It will be opened in the sole name of the minor.
On the other hand, Pehli Udaan is in the sole name of a minor, who can sign uniformly. The maximum savings limit in this account has been set at Rs 10 lakh. In Pehla Kadam account, SBI issues a personalized cheque book with 10 cheque leaves in the name of a minor under a guardian while in Pehli Udaan, SBI issues personalized cheque book with 10 cheque leaves so that the children can sign themselves.
Let’s take a look at steps to open the two accounts:
1) Head to the SBI website – sbi.co.in – and under Personal Banking, click on the Accounts tab and choose ‘Savings Account for Minors’.
2) After you press the ‘Apply Now’ button, a new page will open, the website of SBI YONO. On this page, click on ‘Open a Digital Account’.
3) After you have pressed on the ‘Apply now’ button on this page, fill in the required details. A visit to an SBI branch nearby is essential to complete the process and finally open the account seamlessly.
These accounts can also be opened offline by visiting any SBI branch nearby.