IDBI Power Kids Savings Account

Money management is a crucial aspect of human life. Without proper money management, a rich person can become poor, and vice versa and childhood is the best time to introduce this topic to kids. Children learn about mathematics, including arithmetic calculations and currencies, in school. Incidentally, this is also the best time to introduce them to real money.

When it comes to money, savings is as important as earning. A savings account is the best instrument to introduce your kids to the concept of savings.  The IDBI Power Kids Savings Account is a feature-rich, no-frills savings account that empowers kids to make mature financial decisions.

This article explains everything you need to know about one of IDBI Bank’s most popular accounts, the IDBI Power Kids Savings Account, including its interest rate, minimum balance, features, how to open, documents required, and eligibility.

IDBI Bank - An Introduction

IDBI Bank was formed in 1964 under the aegis of the Industrial Development Bank of India, India’s top Development Financial Institution (DFI). Until 2004, IDBI only catered to project financing, backward area development, and capital market development. IDBI was converted to IDBI Ltd. on 1st October 2004 to offer banking services to the public while continuing its DFI activities. Over time, IDBI Ltd. merged the subsidiaries like IDBI Home Finance, IDBI Bank, United Western Bank Ltd., and IDBI Gilts with itself to become IDBI Bank Ltd.

Presently, IDBI Bank Ltd. serves its customers through its over 1,889 branches, 3,345 ATMs, 1,409 centres, and 58 eLounges across India. The size of its balance sheet is INR 2,97,764 crore as on 31st March 2021. The bank is headed by Mr Rakesh Sharma, Managing Director & Chief Executive Officer.

Ever since the Life Insurance Corporation (LIC) of India acquired a 51% stake in IDBI Bank Ltd. on 21st January 2019, IDBI Bank became a ‘Private Sector Bank.’

IDBI Power Kids Savings Account - A Primer

IDBI Bank Ltd. introduced the Power Kids Savings Account to cater to the growing demand for savings. Nowadays, parents save money soon after their children take birth, and the Power Kids Savings Account has been designed by IDBI Bank specifically for this purpose.

IDBI Power Kids Savings Account is a piggy bank exclusively for kids. This account provides kids with a feature-rich investment instrument to save money safely. Moreover, the account provides a decent interest rate. Additionally, children/ their parents can withdraw their investments whenever required and use the debit card to make purchases at merchant establishments.

The IDBI Power Kids Savings Account inculcates the habit of saving among kids. They can put the money they receive from parents, guardians, or relatives into this account and start making sense of the financial sector. As a fact, the Power Kids Savings Account serves as their gateway to investments and returns. To make the deal even sweeter, IDBI Bank provides the benefit of an education loan at attractive interest rates. Kids can use the money to fund their higher education within India or abroad.

IDBI Power Kids Savings Account - The Top Features

The IDBI Power Kids Savings Account provides many unparalleled features. Some of them are as follows:

• Low monthly average balance of INR 500
• No penalty for not maintaining the monthly average balance
• A kids’ exclusive ATM Card with a withdrawal limit of INR 2,000 at ATMs or POS (Points-Of-Sale)
• Cheque leaves containing the name of the account holder
• Free account statement every month via email
• Free original passbook
• Facility to get Pay Orders and Demand Drafts
• Five (5) free ATM transactions in other bank ATMs every month
• Free Personal Accident insurance cover of INR 2 lakh if the account holder’s guardian dies in an accident. However, the accidental cover will be withdrawn when the account holder becomes ‘Major’ or attain 18 years of age.

IDBI Power Kids Savings Account - Documents

Parents of kids need to submit the following documents to open the IDBI Power Kids Savings Account:

• Guardian’s Individual Savings Account
• Minor Declaration Form to be filled out by the Guardian and signed
• The signature and photograph of the guardian are needed on the application opening form. It is worth noting that the guardian must be natural or appointed by any court of law. Also, each account must have only one minor account holder and one guardian.
• Date of Birth - the minor’s birth registration certificate, passport, report card containing the date of birth, or school identity card containing the minor’s date of birth and photo
• The guardian must sign all the supporting documents. The documents must be self-attested and verified by a bank-approved officer.
• If the account is to be operated by a child above ten (10) years, his or her passport-size photograph is mandatory.
• When the minor account holder attains majority, his or her account will cease to operate until the account holder submits his or her documents afresh.

IDBI Power Kids Savings Account - How to Apply

The application process for IDBI Power Kids Savings Account is as easy as 1-2-3. Follow the steps mentioned below to open an account:

• Step-1: Connect with IDBI Bank by calling the toll-free phone banking numbers 1800-209-4324 and 1800-22-1070. Of the two numbers, the second one is available 24x7.
• Step-2: Visit your nearest IDBI Bank branch. You can find your nearest IDBI bank branch by visiting the bank’s official branch locator page. All you need to do is to select the state and district and click on ‘Search Branch.’ The page will display all branches in that particular district. Besides containing the branch name and address, the page will also provide you with the branch’s phone number, email ID, and business timings.
• Step-3: Wait for a call from the bank’s representative. The representative will guide you through the next steps.

It is worth noting that IDBI Bank’s official branch locator page also provides you with information about your nearest ATMs and eLounges.

IDBI Power Kids Savings Account - Interest Rates

The interest rate of the IDBI Power Kids Savings Account is 4% per annum on the basis of the daily balance maintained in the account holder’s bank account. This is as per the Reserve Bank of India’s guidelines.

The interest rate of the IDBI Power Kids Savings Account is higher than the interest rate on standard savings accounts offered by the bank. For instance, IDBI savings bank account interest rate is 3% per annum for deposit amount of up to INR 5 crore, 3.25% for any amount between INR 5 and 100 crore, and 3.50% for any amount above INR 100 crore.

IDBI Power Kids Savings Account - Minimum and Maximum Balance

The minimum balance needed to maintain the IDBI Power Kids Savings Account is INR 500 in the Power Kids account or an RD (Recurring Deposit) of a minimum instalment of INR 500 every month.

The maximum balance cap on the IDBI Power Kids Savings Account is INR 2 lakh.

IDBI Power Kids Savings Account - Charges

The following is the comprehensive list of service charges for maintaining the IDBI Power Kids Savings Account:

IDBI Power Kids Savings Account - Terms and Conditions

The following are the rules the account holder must know and follow to keep their account active:

1. The IDBI Power Kids Savings Account is primarily meant for saving money. So, the account holder must not use it for business or commercial purposes. It is worth mentioning that IDBI Bank offers a Current Account for business and commercial purposes.
2. If IDBI Bank finds that the Power Kids Savings Account is used by the customer for purposes that are not allowed or to route undesirable or dubious transactions, the bank might close that account.
3. If no credit, debit, or third-party transactions are conducted for two years in a row, the account will convert into an inoperative account. Hence, the customer must carry out transactions in their account periodically. It is good to note that bank-induced transactions, such as service charge deduction or interest credit, are not considered for keeping an account operative.
4. The customer must maintain the Monthly Average Balance (MAB) at all times. Also, if the customer issues a cheque to a third party, his or her Power Kids Savings Account must have the required balance to honour the cheque. If these two conditions are not met, the bank may close the customer’s account after informing them formally.
5. Customers opting for the At Par Cheque facility and the Anywhere Banking facility must pay the service charges and follow the limits stipulated for such facilities.
6. If a customer changes their address, they must notify the bank immediately. It is advisable to attach proof of the new (changed) address with the address change application form.
7. If you open the IDBI Power Kids Savings Account by signing the form, the bank will consider that you have read all terms and conditions and know about the product and service-related charges.
8. The Reserve Bank of India has specified that the bank must inform a customer via email, letter, or SMS if they fail to maintain the minimum balance. If the customer does not replenish the balance before one month from the letter, email, or SMS receipt date, the bank may levy a penalty of INR 225 for every instance.

Should You Open an IDBI Power Kids Savings Account?

An IDBI Power Kids Savings Account is your child's gateway to money management. This account enables them to make sense of money and mathematics. The ATM-cum-Debit card teaches them how to withdraw money from an ATM. They can also use the card in Point of Sale (POS) machines. The low monthly average balance of INR 500 further makes it a smart option.

Considering the many benefits of the IDBI Bank Savings Account, it's a no-brainer that this is a good piggy bank account for kids.

FAQs

• What is the IDBI Power Kids account?

The IDBI Power Kids Savings account is tailor-made savings account for kids. The primary objective of this account is to enable kids to understand the importance of saving money. Kids get an ATM-cum-Debit card and a personalised chequebook. At 4% per annum, the interest rate of this account is higher than a standard savings account.

• What is the interest rate of the IDBI Power Kids Savings Account?

The interest rate of the IDBI Power Kids Savings Account is 4%. The bank calculates the interest rate on the basis of the account’s daily balance.

• What is the minimum and maximum balance requirement of the IDBI Power Kids Savings Account?

The minimum balance needed to keep the IDBI Power Kids Savings Account operational is INR 500 in the account holder’s Power Kids account or a Recurring Deposit (RD) with a minimum instalment of INR 500 every month. The maximum balance cap on the IDBI Power Kids Savings Account is INR 2 lakh.

• Which documents should I submit to open IDBI Bank Power Kids Savings Account?

The documents you need to submit to open an IDBI Bank Power Kids Savings Account are the guardian’s Individual Savings Account, Minor Declaration Form filled out by the Guardian and signed the signature and photograph of the guardian on the application opening form, and the minor’s birth registration certificate.

• What are the benefits of the IDBI Power Kids Savings Account?

The IDBI Power Kids Savings Account is the best way to teach your kids the importance of savings. This feature-rich account provides many benefits, such as a 4% interest rate, a low monthly average balance, a debit card, a personalised cheque book, quick account activation, and the like.