Definition and Purpose

• A Minor’s Account is a bank account opened in the name of an individual below 18 years of age.
• It is designed to promote early financial literacy and savings habits.
• Operated by a natural or legal guardian until the minor reaches majority.
• Helps manage funds gifted, earned, or saved for a child’s future.
• Transforms into a regular account when the minor turns 18.

Types of Minor Accounts

• Savings Account: Most commonly offered with basic banking features.
• Recurring Deposit Account: Allows monthly savings in fixed amounts.
• Fixed Deposit Account: Suitable for lump-sum deposits for long-term goals.
• Some banks offer special minor-specific plans with educational incentives.
• Account type depends on bank policy and minor’s age.

Operation and Control

• For minors below 10 years, the account is fully operated by the guardian.
• Minors aged 10 and above may be allowed to operate the account independently.
• Banks impose transaction limits and restrict overdraft facilities.
• Joint operation with a parent is allowed for better monitoring.
• Account control is transferred to the minor upon turning 18.

Documents Required

• Birth certificate or school ID for minor’s age verification.
• Guardian’s KYC documents: Aadhaar, PAN, and address proof.
• Recent passport-size photographs of the guardian and minor.
• Account opening form duly signed by the guardian.
• Declaration of relationship and operating mandate.

Key Features and Benefits

• No or low minimum balance requirement in most banks.
• Interest is paid on balances as per regular savings accounts.
• Educational savings and gifts can be managed securely.
• Teaches children about money management from an early age.
• Nomination facility and transition process to adult account included.