State Bank of India (SBI) has been offering a host of savings schemes under its personal banking portfolio. And now, the country's largest lender is providing two types of savings accounts for minors -- "Pehla Kadam" and "Pehli Udaan".
The accounts are complete bouquets of banking products that not only help children learn the importance of saving money, but allow them to experiment with the "buying power" of money.
SBI's Pehla Kadam and Pehli Udaan account holders are not required to comply with the bank's rules on monthly average balance (MAB), which are otherwise applicable on its regular savings accounts.
Here are key things to know about SBI's Pehla Kadam and Pehli Udaan accounts:
While SBI's Pehla Kadam account can be opened by minors, the Pehli Udaan account is meant for those who are above 10 years of age.
Mode of operation
Pehla Kadam can be jointly opened along with a parent/guardian. This account will be opened in the sole name of the minor. On the other hand, Pehli Udaan can be opened in the sole name of a minor, who can sign uniformly.
While there is no minimum balance requirement in both the accounts, the maximum investment limit is Rs 10 lakh.
Cheque book facility
In Pehla Kadam account, SBI issues personalised cheque book with 10 cheque leaves in the name of minor under guardian.
In Pehli Udaan, SBI issues personalised cheque book with 10 cheque leaves if the minor can sign uniformly.
ATM card facility
Account holder's photo embossed ATM-cum-debit card with withdrawal/POS limit of Rs 5,000 is in the name of the minor and guardian in case of Pehla Kadam. Card will be issued in the name of the minor and guardian.
In Pehli Udaan, photo embossed ATM-cum-debit with withdrawal/POS limit of Rs 5,000 is issued in the name of the minor.
While Pehla Kadam offers overdraft against fixed deposits for parent/guardian, subject to fulfilling other terms and conditions, Pehli Udaan offers no overdraft facility.
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First Published: IST