Can you create a Savings Account for your children?

3 MinsMar 7, 2023

Parenting a young child is a beautiful journey filled with responsibilities. These little ones depend on you for love, guidance, and support. It's common to feel a strong sense of protectiveness and concern for your child's future.

Can you create a Savings Account for your children?

Although the future is uncertain, you can begin laying the groundwork for the key milestones in your child's path to adulthood. By planning ahead, you can provide your children with a solid financial foundation for their future, demonstrating responsible parenting at its best. by opening a savings account for them.

Your children might still be very young, but time flies swiftly. As the years pass, there will be a rise in the cost of education due to inflation. Why not lend a helping hand to ensure that your kids have some financial support as they grow up? By opening a savings account for them today, you can start building up a sizeable corpus for their future. These savings will grow with time and can one day help pay your children’s tuition fees or even help them kick-start their professional lives.

This financial safety net will keep you stress-free and allow you to spend quality time with your children.

Also Read: [A Savings Account for all your needs]

How can opening a Savings Bank Account help your children?

A Savings Bank account is the first step to financial planning and independence. The same can be done for your children.

The Reserve Bank of India (RBI) allows children above the age of 10 to independently operate their bank accounts! But how can opening a savings account help your children?

  • Introduction to saving: By jointly opening a savings account with your kids, you can teach them the value of money. Earlier, it was common to gift piggy banks to kids in order to teach them the concept of saving. Now, a savings account can act as their new-age piggy bank, with the added protection guaranteed by the bank.
  • Learning how banks operate: Another benefit of opening a savings account with your children is that they can safely deposit their savings and earn interest on it! This can be a great way to introduce them to the world of banking – how to compare different savings account interest rates, choose a bank and apply for a savings account.
  • Teaching the power of compounding: Young minds are impressionable and eager to learn. Lessons taught to children at a young age can be absorbed easily. Thus, introducing your kids to savings accounts at a young age is the most practical way to teach them the concepts of investing and compounding and encourage these habits from an early age. 

Secure your child’s financial future with the Axis Bank Future Stars Savings Account. If you have an Axis Bank Savings Account or even a digital savings account, you can open an Axis Bank Future Stars Savings Account for your child with a minimum deposit of ₹ 3,000 (in urban areas). To open the Future Stars Savings Account all you need is your child's latest photograph, proof of identity and proof of address (of yours and your child’s). The account offers 3 to 3.5% interest on daily balances, along with a Platinum Debit Card. It also comes with a personal accident insurance cover of ₹ 2 lakh for your child. 

Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author 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.