Give your kids a head-start in financial planning

4 MinsOct 14, 2022

Let kids start saving when they are young!

A children’s savings account can be the perfect educational tool for parents, who are hoping to teach their children about money and financial literacy. With the help Axis bank’s Future Stars Savings account, your child can develop sound financial practices from a young age, be it the value of future planning and savings or the impact of compound interest.

Future Stars Savings Account For All Your Child’s Needs

The Future Stars Savings Account by Axis Bank gives your kids a head-start in establishing a solid financial foundation, while also assisting you in teaching them the value of savings. Before you open a savings account for your children, it’s essential to do your research, consider your goals for the account and choose the best account for your child.

The Future Star Savings Account is intended solely for minors under 18. A guardian may manage the account for children under the age of 10.

Why would you want savings account for your child? There are many reasons.

  • To assist your children in becoming more financially literate. Your child can learn about compound interest, various financial accounts and day-to-day money management by having a savings account.
  • To aid your kids in learning more about banking. Your children can pick up skills such as check-depositing, online banking, physical bank withdrawals and more.
  • You can encourage your children to save money they earn through an allowance, housework, or a side job. A savings account can help your child understand the basics of managing money, saving a certain amount of their salary and using it for specific financial purposes.
  • To set aside money for a specific short-term financial objective. Your child might utilise their savings account to put money down for particular purposes, such as purchasing a new video game system, paying for summer camp, or making a specific purchase.

Benefits of owning Future Stars Savings Account:

  • Personal accident insurance cover
    Protect your assets, family and yourself. If the card is swiped once every 90 days, personal accident insurance up to Rs. 2 lakh is covered. To prevent the fraudulent use of the debit card and to offer coverage if anything purchased with the card is damaged or destroyed, a purchase protection liability and a combined lost card liability of up to Rs. 50,000 is offered.
  • Visa Platinum Debit Card at nominal fee
    You can bank conveniently with a low-issue fee Visa Platinum Debit Card. In metro and metropolitan areas, the Visa Platinum Debit Card has an issuance cost of Rs. 200 yearly fees. Children under the age of 10 are entitled to a free ATM card with a daily withdrawal cap of Rs. 1,500. Children older than 10 can have a picture of their choice printed on the card. At Axis Bank ATMs, the first five transactions are free. There is no limit to non-financial transactions after the foremost five transactions. At Non-Axis Bank ATMs in a metro / non-metro location, the first 3/5 transactions are free, correspondingly.

[Also Read  Features to look for when opening a digital savings account]

  • Quarterly interest
    Earn 3.0%- 3.5%* interest on daily balances, quarterly
  • Maintain a low average monthly balance
    • Average monthly balance requirements in metro areas is only Rs. 2,500, and Rs 1000 in rural areas. If a recurring deposit of Rs. 2,000 for a year or a fixed deposit of Rs. 25,000 for six months is maintained, there is no average monthly balance requirement.
  • Low opening deposits
    Start with low opening deposits. The low minimum opening deposit for rural areas is Rs. 1,500 and Rs. 3,000 in other locations.
  • Free chequebook
    With the Future Star Savings Account, get complimentary chequebooks. One free chequebook per year, payable at par, must be in the child’s name or their guardian’s name if the youngster is under 10.
  • Bank at your convenience
    Access to more than 4,400 Axis bank branches, 17,000+ ATMs, and online and 24* 7 mobile banking services.

It’s never too early to get your child to start saving, and a child-friendly digital savings account can be pretty helpful in developing wise financial practices.

Not only are they a secure location to store cash and generate a slight interest, but they’re also a great tool to teach your child about budgeting and setting aside money for future aspirations.

With Axis Bank’s Future Stars Savings Account, you can do all this quickly!

Disclaimer: This article has been authored by PersonalFN, a Mumbai based Financial Planning and Mutual Fund research firm. Axis Bank doesn't influence any views of the author in any way. Axis Bank & PersonalFN shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision