Deposit The question is inclusive and pertains to both minors (below 18 years of age) and their guardians. Someone who is less than 18 years old but can read and write can open the term deposit account on his/her name. Whereas, minors who can’t read and write will have their guardians on the term deposit account.
Now coming to the exact question, let us tell you can open a fixed deposit account at some banks shown below. Let’s read the features of minor term deposit accounts of such banks and figure out the one which is the best of all.
List of Banks Offering Minor FD Account
Bank of Baroda Minor Fixed Deposit Account
Bank of Baroda, one of the largest private sector banks in India, has two fixed deposit accounts for minors –
- Someone with more than 10 years of age (Who can read and write)
- Someone with less than 10 years of age
The first one will be opened in the sole name of minors. On the other hand, the second one will open on a joint basis with natural guardians being the joint account holders. For fixed deposit accounts where a minor is 14 years old or less, the maximum amount accepted is 1,00,000. If the age of a minor is more than 14 years, there shall be no maximum limit. The rate of interest will apply as per the prevailing card rates.
PNB Balika Shiksha Fixed Deposit Scheme
As the name suggests, the said fixed deposit is available for girl students belonging to Scheduled Caste or Scheduled Tribe. All those girls who pass standard eighth from Kasturba Gandhi Balika Vidyalaya and enroll for class IX in schools sponsored by states, union territories or any local bodies in the academic year 2008-09 onwards. The government of India allows a deposit of INR 3,000 for the girl child. Withdrawal is allowed only when the girl becomes 18 years old.
HDFC Bank Kids Advantage Account
It’s actually a savings account that comes with the Money Maximizer facility. So once the balance of the account goes past 25,000, the excess amount will sweep out to the fixed deposit account, hence raising the interest earnings.
Canara Bank Minor Fixed Deposit Account
Canara Bank allows fixed deposit accounts for minors with their guardians as the joint holders. The minimum deposit allowed is INR 1,000 and there’s no maximum limit. You can choose the deposit period from as short as 7 days to as long as 10 years. The interest rate will apply as per the prevailing card rate.
Bank of India Minor Fixed Deposits
Bank of India also allows minors to open a fixed deposit account and earn interest on the same. The account will open only when the guardians of minors become joint account holders. The minimum deposit amount is INR 5,000 for accounts opened in rural and semi-urban branches. In case the deposit account is opened in metro and urban branches, the minimum amount should be INR 10,000.
Documents Required to Open a Minor Fixed Deposit Account
- Birth certificate of the minor child
- PAN Card mandatory for guardians who are joint holders of a minor fixed deposit account
- Voter ID/Driving License/Passport/Aadhaar Card for identity proof (Applicable to Minor Guardians)
- Voter ID/Driving License/Passport/Aadhaar Card for address proof (Applicable to Minor Guardians)