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Financial Gifts for Children: Securing Their Financial Future
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Disclaimer: This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. The Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Article. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from the Bank. The Bank, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein. Tax laws are subject to amendment from time to time. The above information is for general understanding and reference. This is not legal advice or tax advice, and users are advised to consult their tax advisors before making any decision or taking any action.
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As parents, one of the best gifts you can give your kid is a stable and secure financial future. Opening a children’s account is a crucial step towards nurturing your child’s financial awareness. Often addressed as a minor or junior bank account, it not just encourages the habit to save but even teaches valuable money management lessons from an early age. Discussed here is the significance of opening a savings account for kids, and how Kotak Junior savings bank account stands out as a perfect financial option.
Significance of opening a bank account for minors
Inculcating the habit to save from a very young age can considerably impact a kid’s financial discipline and literacy. A junior savings account not just serves as a haven to save funds but even introduces them to various banking concepts such as saving account interest rates, withdrawals, deposits, etc. With a children’s bank account, kids can set goals, watch their money parked in savings accounts grow and learn the value of delayed gratification and patience.
Your kids can save money in minor savings accounts for distinct purposes, such as future career goals, education expenditures, financing extracurricular activities or hobbies and planning for their major purchases such as their favourite gadget or game. Also, it provides them with a financial cushion for exigencies, teaches them the significance of budgeting and enlightens them about responsible spending habits.
How can the Kotak Junior savings account serve as a perfect choice?
Understanding the significance of financial literacy for kids is crucial when it comes to designing a minor savings account, and that is exactly what Kotak does with its Junior Savings account. Mentioned here are reasons why the Junior Savings account by Kotak stands out –
Attractive saving account interest rate
The Kotak Junior account ensures steady growth of the parked funds by kids, motivating them to save and park funds diligently. To encourage kids to explore other financial products and earn higher returns, you as parents can introduce them to the concepts of fixed deposit (FD), recurring deposit (RD) and systematic investment plan (SIP).
Personalised debit cards
Children love to have their own things and Kotak offers customised debit cards tailored for them. This adds a touch of personalisation to their banking and savings experience. With their own debit cards in their hand, kids can gradually learn to independently manage their expenses. As parents, you are allowed to set spending restrictions on the debit card, ensuring it is just used for planned purchases. This approach allows your kids to understand the importance between wants and needs.
Lower daily withdrawal limit
The daily withdrawal limit on Kotak Junior's savings account is much lower. While it may appear restrictive, it meets the purpose of teaching your kids the essence of careful spending and prevents them from falling prey to impulsive buys.
Waiver on non-maintenance fee
On Kotak Nova Junior bank account, as long as adequate SIP or RD is active, the non-maintenance fee is waived. This flexibility allows the kids to manage their bank accounts without bearing any penalties or witnessing unnecessary stress.
Privileges and discounts
Kotak Junior bank account offers exciting privileges and discounts on popular brands. Such perks make parking funds in junior accounts even more rewarding, encouraging kids to save and spend diligently.
Final thoughts
Teaching kids the importance of saving and financial discipline is a key investment in their future financial stability. The Kotak Junior account is a great way for parents to provide their kids with a nurturing environment to learn these essential financial skills. By opening a junior account today, you can help your kids start their journey towards financial independence and prudence from a young age.
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