A kids' savings account is a facility provided to children that aims to develop a disciplined saving habit amongst children while also providing the gaurdian/parent with a liquid asset that can be used at any point of need. These accounts can act as the cornerstone of financial independence while also providing them with several account holder benefits.
Read more
Invest ₹10k/month your child will get ₹1 Cr# Tax-Free*
A kids' savings account is specially designed for children. It is generally opened by the parent on behalf of the child, and the operations of the account are handed over to the child once they reach 18 years of age.
*These benefits may vary from bank to bank
Note that the features of the kids' savings account depend on the banks or credit unions. Some of the common features are as follows:
Note that the documents needed to open a savings account might vary from bank to bank. Here is a list of some common documents required.
Note that fees and charges can vary from bank to banK. Some common fees and charges are:
Most banks offer interest rates between 3% and 5% on children's savings accounts.
The following table lists the interest rates on kids' savings accounts offered by banks
| Bank | Product Name | Interest Rates | Minimum Balance required |
| HDFC Bank | Kids Advantage Account | 2.5%-3% | ₹5000 |
| ICICI Bank | Young stars/ Smart Star | 2.5%-3% | ₹2500 |
| Kotak Mahindra Bank | My Junior Account | 2.5% | ₹5000 |
| SBI Bank | Pehla kadam/Pehli udaan | 2.50% | No minimum balance |
| Axis Bank | Future Star savings account | 3-3.5% | ₹2500 |
Note: It is important to note that these interest rates are subject to change at any time. It is always best to check with the bank to get the most up-to-date information on interest rates
While a savings account can act as a good initial investment, you can compare various investment tools such as the Sukanya Samriddhi Yojana and Child plans to understand your best investment options. The following table lists the difference between Kids Savings Account, SSY and child plans.
| Parameter | Kids Savings Account | SSY | Child Plan |
| Eligibility | Children below the age of 18. | Only girls under the age of 10 | Children below the age of 18 |
| Returns | Guaranteed but smaller returns | Guaranteed returns | Returns are market-linked |
| Tax Benefits | While calculating taxes, the income is clubbed with that of the parent. Deductions up to ₹1500 are allowed | EEE benefit. Deductions under section 80C, tax-free interest and maturity. | Eligible for deductions under section 80C up to ₹1.5 lakh. The Plan is eligible for tax-free maturity for annual premiums not exceeding ₹ 2.5 lakh |
| Partial Withdrawal | Highly liquid. Facilitates withdrawal at any point in time. | Partial withdrawal allowed after the child turns 18 or passes class 10th | Withdrawal allowed after the lock-in period is complete. |
| Risk | No risk | No risk | Market-risk applicable |
Kids' savings accounts are one of the best financial tools to teach your kids a way to save with discipline in a regular manner. They offer various benefits to encourage child savings, which can further transition into independent account management once the child turns 18 years old. However, note that the offerings and procedures are different for every bank.
Investment
Secure
20 Jul 2026
Ladli Lakshmi Yojana online application makes it easier for
06 Jul 2026
If you're a parent saving for your daughter's future, two names
03 Jul 2026
Every parent thinking about their daughter's college fees or
03 Jul 2026
Parents planning for their daughter's future often find
03 Jul 2026
Namo Saraswati Yojana, officially known as Namo Saraswati Vigyan
˜The insurers/plans mentioned are arranged in order of highest to lowest first year premium (sum of individual single premium and individual non-single premium) offered by Policybazaar’s insurer partners offering life insurance investment plans on our platform, as per ‘first year premium of life insurers as at 31.03.2025 report’ published by IRDAI. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. For complete list of insurers in India refer to the IRDAI website www.irdai.gov.in
*All savings are provided by the insurer as per the IRDAI approved insurance
plan.
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
#The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: ₹1,05,02,174 @ CARG 8%; ₹50,45,591 @ CAGR 4%
+Returns Since Inception of LIC Growth Fund
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.
++Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.
Insurance
Calculators
Resources
Policybazaar Insurance Brokers Private Limited CIN: U74999HR2014PTC053454 Registered Office - Plot No.119, Sector - 44, Gurugram - 122001, Haryana Tel no. : 0124-4218302 Email ID: care@policybazaar.com
Policybazaar is registered as a Composite Broker | Registration No. 742, Registration Code No. IRDA/ DB 797/ 19, Valid till 09/06/2027, License category- Composite Broker
Visitors are hereby informed that their information submitted on the website may be shared with insurers.Product information is authentic and solely based on the information received from the insurers.
BEWARE OF SPURIOUS PHONE CALLS AND FICTITIOUS / FRAUDULENT OFFERS IRDAI or its officials do not involve in activities like selling insurance policies, announcing bonus or investment of premiums. Public receiving such phone calls are requested to lodge a police complaint.
© Copyright 2008-2026 policybazaar.com. All Rights Reserved.