SBI Launches SB Account for Minors: Know Benefits, Interest Rate and Others Here!

India’s largest public lender State Bank of India (SBI) has launched new scheme for minors. Known as ‘Pehla Kadam’ and ‘Pehli Udaan’, the SBI is offering the best saving bank accounts for minors with internet banking and mobile banking facility.

As per the SBI website, it states that the two savings bank accounts for minors will help them to enthuse the importance of saving money and also get them acquainted with the “buying power of money”. 

Both the saving accounts, ‘Pehla Kadam’ and ‘Pehli Udaan’ are integrated with 'per day limits' feature to ensure that they spend the money wisely. An option of setting up one Standing Instruction for Recurring Deposit, free of charge is also available with these accounts, the website also reads.

Below are few features of SBI savings bank account for minors: 

1. No Monthly Average Balance (MAB) required

2. Maximum Balance Rs 10 lakh

3. Cheque book facility is available with both types of accounts. The mobile number of the account holder is recorded. 

4. Specially designed personalised cheque books with 10 cheque leaves are issued. Initially, it will be issued to the Guardian in the name of minor. But in the later stage, it will be issued if the minor can sign uniformly.

5. Photo ATM-cum-Debit Card facility is available. For Pehla Kadam, withdrawal/POS limit is Rs 5,000. Cards will be issued in the name of the minor and Guardian.

6. For Pehli Udaan, withdrawal/POS limit of Rs 5,000 and card is issued in the name of the minor.

7. Mobile banking with viewing rights and limited transaction rights like bill payment, Top ups. Per day transaction limit of Rs 2,000.

8. Auto sweep facility with a minimum threshold of Rs 20,000. Sweep in multiples of Rs 1,000 with a minimum of Rs. 10,000. 

9. Over Draft for Parents/Guardians

10. PehlaKadam : Overdraft against Fixed deposits for parent/guardian subject to fulfilling other terms and conditions.

11. PehliUdaan : No overdraft facility under this product