Opening Of Minor Account

i) Customer shall mean the minor holding an Account with Bank. However, for all the operational purposes it shall imply the Guardian/Parent wherever applicable. ii) Guardian/Parent shall mean the natural/court appointed guardian appointed under the applicable laws of the Customer. iii) All the capitalised words and expressions used herein, but not defined shall have the same meaning respectively assigned to them under Terms for Savings Account. 2. Account Opening: The Guardian / Parent hereby undertakes that the account shall be opened and operated at all times by Guardian/ Parent for the benefit of the minor irrespective of the channel / mode of operation / account opening. Bank shall honour any transactions / instructions as received by it through any mode / channel with respect to the account on the assumption that the same are being carried out / provided by the Guardian / Parent for the benefit of the minor without independent verification thereof. The Account shall be either a Normal Savings Account or a Fixed/Recurring Term Deposit. 3. Operating Accounts: i) An account shall be opened in the name of minor u/g guardian. ii) In case of joint accounts, the same shall be opened with the Guardian in accordance with the applicable laws and policies of Bank, which may be revised from time to time. iii) In case the Account is to be opened as a normal saving account, it is mandatory that the Guardian/Parent shall have an existing normal savings account with the Bank. Further, in case the normal savings account of the Guardian/Parent account is not opened by the Guardian/Parent, the same is required to be opened by the Guardian/Parent prior to the opening of the Account. iv) In case the Account is to be opened as a Fixed / Recurring Term Deposit, the Guardian/Parent is not required to have an existing normal savings account. v) Introduction shall be of the Guardian/Parent only. 4. Cheque Book: Personalised chequebook will be issued to the Guardian in the name of minor u/g guardian. 5. Non Transferability: The Account and the Services shall be also used by the Guardian/Parent in order to operate the Account on behalf of the Customer. 6.Conversion of the Account to a Normal Savings Account: A communication letter from Bank shall be sent to the Customer intimating him about the facility of conversion of his Account to a normal savings account. Upon the Customer attaining majority, ICICI Bank shall have the right to freeze the Account. Such freeze shall be released only upon the fulfilment of all account opening formalities by the Customer (minor) as applicable to normal savings account. 7. On Attaining Majority: Any cheques issued by Guardian prior to the date of the Customer attaining majority and which has been presented for clearing after the conversion of the Account shall not be honoured by Bank. Upon the Customer attaining majority, the Guardian shall not be permitted to operate the Account.

Bank Account for Children in India

Two schools of thought exist, regarding children being allowed a bank account too early in life. We must understand that the exposure that children have these days is unprecedented. Therefore with changing times and technology, we must adapt ourselves and change our own thinking process. It is better to educate children on certain aspects of banking from an early age, so that they understand money matters better. Banking norms for Kids account:There are set of basic rules that are followed by banks in India when it comes to childrens banking account. Minor would make a much weighed word in legal terms instead of children and an account here would mean savings account.

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An account can be opened in the name of a minor (person whose age is less than 18 years) by his/her parent or guardian who is the joint holder of the account. The account that is held jointly with the parent or guardian can be operated only by this parent or the guardian and not the minor. A minor who is more than 10 years old can open and also operate an account by himself/herself. In this case the guardian/parent also will have the right to operate this account of the minor. Two minors who are over 10 years of age can hold an account jointly. General Features of childrens bank account:-

As mentioned above a guardian or a parent can open an account for a minor and this account can either be jointly held or can be an independent account. For an independent account the minor has to be more than 10 years of age. The parent/guardian can choose to get bank statements on regular basis. This will be helpful for a parent/guardian to monitor the childs account. The parent/guardian also has the option to give instructions to the bank to transfer certain specified sum of money into the childs account on a regular basis. Banks that provide these accounts also provide all basic facilities that a savings account has. This includes debit card, pass book and some banks even provide cheque books for minors. Few banks also provide additional insurance covers to the life of parent/guardian. Here a certain sum is assured to the minor on the death (under specific conditions) of the parent/guardian. There are various types of deposit schemes for minors offered by other banks. Eligibility and conditions:-

A minors account can be opened in the name of or by a person who is less than 18 years old. There are specified situations where the age is extended to 21 as per the courts declaration. In this case the minors guardian will be opening the account for the minor. Banks may have specific lower limits of age for entry into this account. The guardian/parent should hold an account with the bank where he/she wants to open an account for the minor. Usage of the money from the account and minimum amount that has to be credited into the account will be as per the basic rules set by individual banks. Penalty will be charged if the guardian/parent is not able to maintain minimum balance in the minors account. Once the account holder (child/minor) turns into major depending on the bank there will be few verifications made (signature or photograph). Documents required for Kids bank account:The basic KYC norms will be followed while opening an account for a minor in the bank.

Document for proof of age and address of the minor Document for the proof of relationship between the parent/guardian and the applicant minor Proof of identity of the minor Photographs of minor

If the parent/guardian is able to engage the minor in this account in an active manner then it sure does teach the minor to manage money. Since there are conditions like minimum average monthly/quarterly balance and also respective penalty if the same is not maintained it improves a minors money management skills gradually. On the other hand the account also paves way for a new era where children would be much equipped with knowledge of banking by the time they turn major. At the same time the account also has a defect where it actually does not teach the child on where to spend. At times this lesson can be crucial and if the parent/guardian does monitor the kids account and spending on a regular basis, the entire objective of this scheme may fail.

Joint Bank Accounts

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Banks always provides the joint bank account facilities according to their customers need. All the basic features and facilities like single account system are available in joint account system except only the mode of operation. Following are the features of the Bank savings account: The withdrawal or deposition facilities are easily available in any branches of Bank in anywhere of India Nomination can done very easily Using debit cum ATM card it is too much easy to cash withdrawals from ATMs. Banks debit cum ATM card holder can withdraw money from ATM of any bank if and only if the customer holds the individual domestic savings account and always maintains the quarter average balance. Internet Banking is always free of cost

The one and only one criteria to be an Bank savings bank account holder is, the customer must be residing in India.

Required Documents:
Any one of the below will be considered as identity proof PAN Card Employment Card EX employment service card Bar council card Senior citizenship card Cards provided by Indian Medical association MAPIN card Driving license Another bank statement and KYC cheque of that bank

Any one of the below will be considered as residential proof Last electricity bill Post office certified address proof Some documents are considered as identity proof as well as residential proof also: Passport Authorized pension card Authorized Freedom fighters card Self attested cheque (in case of the applicant not visit the bank himself in the time of account opening) Everything remains the same in case of joint account except for the following: Mode of operation: joint All required documents in time of opening account: for both the person All the transactions in case of joint account can be maintained either by both of the person or any one of them.

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What is HUF Account?

Hindu Undivided Family (HUF):HUF is a family with husband, wife and children (and childrens spouses if any) living together. The property owned by this family will be through lineal ascendants or any ancestors. There are a set of laws that govern property ownership, marriages, taxation etc for a legally declared HUF. IT department of India has a format of taxation for a HUF; tax benefits can be availed from this format. HUF accounts:Karta of a HUF is the senior most male member of the family and in financial terms he can also be called manager of the family. In this account a corpus is created where every family member can pool their income. The corpus will be handled by or authorized to handle by Karta (head of the family). Signature of karta will be required for every transaction from the bank. These accounts are similar to individual saving bank accounts; there will be various tax benefits that are available for an individuals account while the income of members is being pooled in HUF account. Features of HUF account:There are a few features of HUF account that makes it different from regular saving bank accounts.

Every member of the family can deposit their income in the common corpus Single persons authority while participation from entire family Tax benefits on deposits under various sections Corpus can be divided only on agreement of every coparcener of the family

Documents required for opening HUF account:There are few documents that will be required for opening an HUF account.

HUF will have a unique PAN card; this PAN card along with the PAN of Karta should be produced. A declaration form will be provided where every member has to make a signature stating the name of Karta and declare 1. They are the only members of HUF. 2. Karta to have sole authority over HUF account 3. Every transaction on behalf of HUF account, made by each member of the family is governed by karta.

Residential proof of Karta Identification proof of Karta

Apart from the points mentioned above there can be other documents or conditions depending on the bank where HUF account is opened. Tax benefits on a HUF account:-

Since the account is equivalent to an individuals account there are various tax benefits and a few of them are mentioned below. According to IT act, tax rebates and deductions can be availed under sections 80C, 88 and 80L for HUF account. Gifts collected up to a worth of Rs 50,000 will be tax free. A father who owns a HUF account can gift a property or money of higher worth to a son who owns a smaller HUF account; but he should specify that the gift is for the sons HUF and not to him as an individual. Under section 64(2) and

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56(2) tax benefits can be enjoyed in such instance. Corpus can be used for investment in tax free money instruments. Disadvantages of HUF account:-

There can be a strong sense of insecurity among members that can keep the corpus of the account empty and as long as corpus is empty the account is non functional. If any of the members of HUF is willing to for a partition then the process of partition in deposit in HUF account can turn to be tedious (problematic)

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