You Can Gift Your Child This Bank Account On Children's Day

State Bank of India (SBI), country's largest lender, offers Pehla Kadam and Pehli Udaan savings accounts for minors. On the occasion of Children's Day, SBI on microblogging website, Twitter, said: "One of the best gifts you can give your kids is to empower them with the right knowledge and tools to learn about savings and sound finances!" Pehla Kadam and Pehli Udaan are meant for children under the age of 18. While the Pehla Kadam account can be opened in the name of an individual aged below 18 years, the Pehli Udaan account is meant for those are above 10 years of age, One also doesn't need to maintain Monthly Average Balance (MAB) for both accounts. So, these bank accounts can be operated with zero balance, according to SBI's website - bank.sbi. 

Here are key things to know about SBI's Pehla Kadam and Pehli Udaan accounts on Children's Day:

1. Eligibility

Pehla Kadam: Minor of any age can open this account but it has to be jointly opened with the parent or guardian.

Pehli Udaan: This account can be opened in the sole name of the minor above the age of 10 years who can sign uniformly.

2. Mode of Operation

Pehla Kadam: This account has to be operated jointly with the parent or guardian or singly by the parent or guardian.

Pehli Udaan: One can singly operate Pehli Udaan account, said SBI. 

3. Internet Banking

Both the accounts have a transaction limit of Rs. 5,000 per day. One can make bill payments, inter-bank funds transfer (NEFT only), get demand drafts and open e-term deposits from these accounts.

4.  ATM-cum-Debit Card

Pehla Kadam: Child's photo embossed ATM-cum-Debit Card with withdrawal/POS limit of Rs. 5,000 will be issued in the name of the minor and guardian.

Pehli Udaan: Photo embossed ATM-cum-Debit with withdrawal/POS limit of Rs. 5,000 will be issued in the name of the minor. 

5. Cheque book facility

Pehla Kadam: Personalised chequebook (with 10 cheque leaves) will be issued to the guardian in the name of minor under guardian.

Pehli Udaan: Personalised chequebook (with 10 cheque leaves) will be issued if the minor can sign uniformly.

6. Mobile Banking

Both the accounts have a transaction limit of Rs. 2,000 per day. One can make bill payments, top-ups from these accounts.

7. Interest Rate 

Interest rate is offered as applicable to savings bank account, which is calculated on daily basis for both the accounts. 

8. Nomination

Nomination facility is also available with both Pehla Kadam and Pehli Udaan accounts.

9. Auto sweep

Auto sweep facility is available with both these accounts with a minimum threshold of Rs. 20,000. Sweep in multiple of Rs 1,000 with a minimum of Rs. 10,000, said SBI.

10. Transferability 

One can transfer the accounts to any SBI branch without changing the account number.