On published terms, SBI’s Pehla Kadam and Pehli Udaan are the clearest minor accounts in the market. Bank of Baroda’s Champ account is the better choice if you want a hard balance cap. Neither wins on interest rate, and that is the point.
A minor savings account is a teaching tool. The money in it should be small. What matters is who can move it, how much can leave in a day, and whether the account can be overdrawn. Compare those three things and ignore the rest.
Which minor accounts have the best published limits?
| Account | Who opens and operates | Balance cap | Daily card and app limits | As of |
|---|---|---|---|---|
| SBI Pehla Kadam | Minor of any age, jointly with a guardian, or the guardian alone | ₹10,00,000; no monthly average balance | ₹5,000 a day on ATM and POS; ₹2,000 a day on mobile banking | 6 Sep 2026 |
| SBI Pehli Udaan | Minor above 10 who can sign consistently, operating alone | ₹10,00,000; no monthly average balance | ₹5,000 a day on ATM and POS; ₹2,000 a day on mobile banking, including IMPS | 6 Sep 2026 |
| Bank of Baroda Champ | Age 0 to 18; card from age 10; net and mobile banking above 10 | ₹1,00,000 on any day for ages 10 to 14; zero monthly average balance | ₹3,000 a day at ATMs, within an overall ₹5,000 a day | 6 Sep 2026 |
All figures are from each bank’s own product page, read on 6 September 2026. Banks revise these limits without much notice. Check the page again on the day you open the account.
What did the RBI change for minor accounts in 2025?
The RBI issued fresh norms on deposit accounts of minors on 21 April 2025. Banks were told to align their policies by 1 July 2025. Three things in it matter to a parent.
First, a minor of any age can hold a savings or term deposit through a natural or legal guardian. The mother can be that guardian. That closed an old and pointless argument at branch counters.
Second, a bank may let a minor above an age of not less than ten operate the account alone. The age and the limits are the bank’s call, not the RBI’s. That is why SBI sets the bar at ten and Bank of Baroda issues the card at ten.
Third, the account can never go into debit. No overdraft is permitted, whoever operates it. This is the single most useful feature of a minor account and nobody advertises it.
Why the interest rate is the wrong thing to compare
These accounts pay ordinary savings interest. The balances are small. On ₹25,000, a quarter-point difference in rate is worth about ₹60 a year. It is noise.
The spend controls are worth far more. A ₹5,000 daily card limit is what stops a lost card or a bad in-app purchase from becoming a real loss. A hard balance cap does the same job from the other side.
If you are saving seriously for a child, this is not the product. Look at Sukanya Samriddhi for a daughter, or PPF otherwise. Both pay more and both lock the money up, which is the feature. Our guide to planning for a child sets out the order.
What actually goes wrong with a minor account
Two things, repeatedly. The first is the day the child turns eighteen. The account does not convert itself. The bank needs fresh operating instructions and a new specimen signature. Until it gets them, the account can be frozen. Diarise the birthday.
The second is tax. Interest earned by a minor is generally clubbed with a parent’s income and taxed there. It is not the child’s income for tax purposes. Small balances make this trivial. Large ones do not, which is another reason to keep the balance small.
A third point is worth stating plainly. Bundled extras on these accounts, such as gift vouchers or education benefits, rarely survive a reading of the terms. Judge the account on the limits table above.
Is your child’s money safe in these accounts?
Deposit insurance covers up to ₹5,00,000 per depositor per bank, principal and interest together. A minor is a separate depositor. The cover is explained on our deposit insurance page.
Since no minor account here can be overdrawn, the practical risk is theft, not loss. That again points you back at the daily limits.
Frequently asked questions
Can a 10-year-old operate a bank account alone in India?
Yes, if the bank allows it. The RBI’s April 2025 norms permit banks to let minors above an age of not less than ten open and operate savings and term deposits independently. The bank sets the amount and the terms under its own risk policy. SBI’s Pehli Udaan is built for exactly this.
Can a minor’s account go into overdraft?
No. The RBI requires that these accounts always stay in credit, whether the minor or the guardian operates them. That makes them safer than a regular account for a first card.
Does a minor account need a minimum balance?
Not on the three accounts above. SBI’s two minor accounts carry no monthly average balance requirement, and Bank of Baroda’s Champ account is zero balance. If a bank quotes you a minimum, look at zero balance options instead.
Who pays tax on the interest?
Usually the parent. A minor’s income is generally clubbed with that of the parent whose income is higher. There are exceptions, mainly where the child earns from their own skill or work.
What happens to the account at 18?
It stops being a minor account. The bank must take fresh operating instructions and a new signature. Product features tied to minority, such as the low card limits, fall away at that point.
Sources
- State Bank of India, savings accounts for minors, read 6 September 2026. sbi.bank.in
- Bank of Baroda, Baroda Champ account, read 6 September 2026. bankofbaroda.bank.in
- Reserve Bank of India, norms on opening of and operation in deposit accounts of minors, 21 April 2025, to be implemented by 1 July 2025.
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