What To Keep In Mind While Opening Bank Account For Minors
What Is Bank Account
Before proceeding in pinpointing what to keep in mind while opening bank account for minors, it is necessary for us to come across the exact meaning of bank account. By opening a Bank Account, an individual not only keeps his hard earned money safe in bank, but gets interest as well over the whole amount of cash deposited. Bank account offers a variety of facilities to the customer such as pay in slips, draft facility, check book facility, bank statements, ATM cum debit card and credit card services. Bank Account provides a facility of transferring the money from one account to another, from one bank to another, deposit money any where else, withdraw cash any where and have the loan on nominal interest as well.
How To Open Bank Account?
If you seek to provide full security to your cash, it’d better for you to open a bank account in any bank by completing all the formalities sought by the respective bank.
In order to open a bank account you’ll be needed to complete an application form, produce a latest photograph and produce some additional documents substantiating your identity as well as address. After the scrutiny of your completed form, the branch manager of respective bank approves your customer ship, following which you are asked to deposit the cash, not less than predetermined by the bank. Minimum balance needed to be maintained in your bank account varies from bank to bank, depending upon its self regulated norms.
Documents To Be Made Available To The Bank
- One or two self attested snaps.
- Address proof.
- Identity proof.
What Is the Minor Bank Account?
Bank account for minor encourages the child to become savings conscious and know the value of money. Children being too sensitive by their nature learn from whatever they find around them. Their inquisitive brain stimulates them to emulate all the activities of their seniors very easily. So they should be motivated to do what has got to prove to be much productive, after some years in their life. And opening a bank account in their’s name implements such idea.
What to keep in mind while opening bank account for minors
If your child is less than seven years of age, you will be entitled to open and operate his/her bank account. Otherwise ten plus children can open their accounts with you assistance and operate them as well. You should keep in your mind the following points, while opening the bank account for minor.
- You should make your children money minded and encourage them to save whatever they receive as pocket money.
- You, as parent or a guardian, are required to represent your child if he/she is less than seven years of age. Though the age limit for the children seeking to open their bank account is ten years, it may differ in some specific banks.
- You will have to complete the same formalities which you must have done, while opening your own account earlier. Besides, you will have to produce a snap of your minor child along with his birth certificate as well.
- You will have to make the signature on behalf of your minor child.
- You should make sure, while opening bank account for minor, that you are not going to violate any Tax related law in future.