Opening a separate savings account for a child can be useful when parents want to set aside money for education, allowances, gifts or future expenses while teaching basic financial habits. The right time depends less on the child’s age and more on whether the account has a clear purpose and can be managed appropriately.
Why open a separate account for a child?
Keeping a child’s money separate from household finances can make savings easier to track and give children practical experience with money.
A dedicated account can help families:
- Build savings specifically for the child’s needs
- Introduce budgeting and goal-based saving
- Teach children how deposits, withdrawals and interest work
- Give older children supervised experience with digital banking
- Keep gifts, allowances or education-related savings organised
A separate savings account is particularly useful when regular contributions are being made for a specific goal.
When should you open one?
There is no single age at which every child needs an account. Parents may consider opening one when:
- The child regularly receives pocket money or monetary gifts.
- You want to create a dedicated education fund.
- The child is old enough to understand saving and spending.
- You want them to start tracking their own money.
- You want to separate long-term child-related savings from everyday household funds.
Under RBI guidelines, a minor of any age can have a deposit account through a natural or legally appointed guardian. Banks may also allow minors above 10 to operate Savings Accounts independently, subject to their own policies and safeguards.
What type of account should you choose?
The choice generally depends on the child’s age and how much independence you want to provide.
| Account type | Suitable for | Control |
| Guardian-operated | Younger children | Parent or guardian |
| Self-operated minor account | Older children | Minor, subject to bank rules |
| Regular account | After majority | Child independently |
Parents should check the bank’s age criteria, balance requirements, transaction limits, Debit Card provisions and digital banking facilities before applying.
Minor account options from IDFC FIRST Bank
IDFC FIRST Bank currently offers a Minor’s Savings Account for children below 18 that can be operated with a parent or guardian. The bank also offers FIRST Prodigy, a self-operated savings account for resident Indian minors above 10 and below 18.
The guardian-operated Minor’s Savings Account has no Average Monthly Balance requirement according to the bank’s current information. The FIRST Prodigy account, meanwhile, has a ₹10,000 Average Monthly Balance requirement and provides a Visa Platinum Debit Card with specified transaction limits and other benefits.
For families considering minor account opening online, IDFC FIRST Bank provides digital account-opening options for its minor offerings, although eligibility, documentation and operating arrangements vary by account type.
What documents are required?
Requirements vary by bank, but parents should generally be prepared with documents for both the child and guardian.
For IDFC FIRST Bank’s guardian-operated Minor’s Savings Account, the bank lists the child’s birth certificate, Aadhaar or passport and photograph, along with the guardian’s identity and address proof, photograph and signed application.
Before minor account opening online, check the latest documentation requirements because additional documents may be requested depending on the account and applicable banking policies.
When should the child start managing the account?
Financial independence can be introduced gradually. Younger children may simply observe deposits and balances, while older children can learn to track spending, save towards goals and use permitted banking facilities.
For children aged above 10, a self-operated account can provide greater hands-on experience, subject to the bank’s rules. When the child turns 18, the account generally needs to be converted or regularised with fresh KYC and operating instructions.
Conclusion
A separate savings account can help families organise child-related savings while introducing children to responsible money management. The best time to open one is when there is a clear purpose, whether that means education savings, allowances or financial learning. For minor account opening online, compare the bank’s age requirements, guardian arrangements, balance conditions, transaction facilities and documentation before choosing an account.
FAQs
1. Can a child have a Savings Account?
Yes. A minor can have a deposit account through a parent or legal guardian, subject to the bank’s applicable rules.
2. Can a minor operate a Savings Account independently?
Banks may allow minors above 10 to operate accounts independently, subject to their policies and safeguards.
3. Is a minor account useful for education savings?
Yes. A separate account can help parents organise regular contributions and keep education-related savings distinct from everyday spending.
4. Can I complete a minor account opening online?
Some banks provide digital journeys for minor accounts. The available process and documentation depend on the specific account.
5. What happens when the child turns 18?
The bank will generally require the account to be regularised with fresh KYC and updated operating instructions so the young adult can control the account.
Keyword Usage
| Keyword | Frequency |
| savings account | 6 |
| minor account opening online | 3 |
