State Bank of India (SBI) has introduced 'Pehla Kadam and Pehli Udaan' savings account for minors. SBI official website says, “Pehla Kadam and Pehli Udaan (PKPU), are complete bouquets of banking products, that will not only help children learn
the importance of saving money but will also allow them to experiment with the ‘buying power’ of money,"
the importance of saving money but will also allow them to experiment with the ‘buying power’ of money,"
According to the bank, both the Savings Accounts are fully loaded; replete with banking features like internet banking, mobile banking, etc. which will acquaint children with the different channels of modern-day banking. All these features come with 'per day limits' to ensure that children spend the money wisely.
Everything you need to about the accounts:
1. Eligibility:
Pehla Kadam: A minor of any age can open this account. However, the account has to be jointly opened with the parent or guardian.
Pehli Udaan: This account can be opened in the sole name of the minor above the age of 10 years who can sign uniformly.
2. Transaction limit:
Both the savings account have a transaction limit of Rs 5,000 per day, in case of internet banking, and Rs 2,000 with mobile banking. One can make bill payments, inter-bank funds transfer (NEFT only), get demand drafts and open e-term deposits from these accounts.
3. Interest rate:
The interest rate on Pehla Kadam and Pehli Udaan is similar to a savings bank account. For savings deposits balance less than Rs 1 lakh, SBI offers an interest rate of 3.25%. On balance of over Rs 1 lakh, it offers an interest rate of 3%.
4. ATM-cum-Debit Card
Pehla Kadam: ATM-cum-Debit Card with the child’s photo embossed on it will be issued with a withdrawal/POS limit of Rs 5,000, in the name of the minor and guardian.
Pehli Udaan: Photo embossed ATM-cum-Debit with withdrawal/POS limit of Rs 5,000 will be issued in the name of the minor.
5. Chequebook facility
Pehla Kadam: Personalised chequebook (with 10 cheque leaves) will be issued to the guardian in the name of the minor.
Pehli Udaan: Personalised chequebook (with 10 cheque leaves) will be issued if the minor can sign uniformly.
6. Mobile Banking
Pehla Kadam: With viewing rights and limited transaction right like bill payment, top-ups. Per day transaction limit of Rs 2,000
Pehli Udaan: With viewing rights and limited transaction right like bill payment, top-ups, IMPS. Per day transaction limit of Rs 2,000.
7. Auto sweep facility with a minimum threshold of Rs 20,000. Sweep in multiple of Rs 1,000 with a minimum of Rs 10,000
It is worth mentioning that one doesn't need to maintain Monthly Average Balance (MAB) for both these savings accounts. The bank is also offering Personal Accident Insurance Cover (offered by SBI General) for the parent in case of Pehla Kadam account only.
