Minimum Balance Requirements

• Most banks offer zero balance Minor’s Accounts, eliminating non-maintenance charges.
• Some banks may set a very low minimum balance, typically ₹500 to ₹1,000.
• If balance falls below the set limit, non-maintenance charges may apply.
• Charges are waived if the account is part of a financial inclusion scheme.
• It’s important to confirm the specific threshold with the bank.

Fee Waivers and Relaxations

• Minor accounts often receive waivers on penalty charges to promote savings.
• Banks may not impose maintenance charges if the minor is below 10 years.
• Charges are typically re-evaluated at the time of account review or transition.
• Some banks extend free services such as ATM usage, SMS alerts, and cheque books.
• Fee exemptions may differ based on account type or bank policy.

Transaction-Linked Penalties

• Charges may apply for exceeding withdrawal limits, especially in minor-operated accounts.
• Cheque bounce, ATM card misuse, or branch cash withdrawal limits may trigger fees.
• These are typically lower compared to adult account holders.
• Banks notify guardians before imposing such penalties.
• A review of terms during account setup helps avoid surprises.

Transition Charges at Majority

• Upon turning 18, the account is converted to a regular savings account.
• New charges, including non-maintenance fees, may begin to apply.
• Banks inform the account holder of applicable fee structures.
• Transition requires reassessment of balance requirements and features.
• Failure to meet new terms may lead to standard service charges.

Bank-Specific Policy Variations

• Charges and exemptions vary across public, private, and cooperative banks.
• Some banks waive all maintenance charges till the minor turns 18.
• Fee schedule is disclosed in the account opening kit or terms document.
• Regular balance monitoring helps avoid accidental penalties.
• It is advisable to compare banks for the most minor-friendly fee policies.