Bank Account for Kid

[Darthvader]

I want to open a bank account for my sister's baby boy (10 months old), Please suggest me which banks provide option to keep maximum balance of 50L .

SBI limits at 10lakh, also planning to open PPF account in name of baby. Please suggest

 

[bugmenot]

What's your purpose to open a bank account?

If you like to invest 50L for short term and relatively safe place, go for liquid mutual fund. You may also create FD.

 

[RupayMan]

I want to open a bank account for my sister's baby boy (10 months old), Please suggest me which banks provide option to keep maximum balance of 50L .

SBI limits at 10lakh, also planning to open PPF account in name of baby. Please suggest

PPF on a baby name? Are you planning a retirement in 10 months of birth? If you ask a financial enthusiastic people, PPF is overrated they say.

 

[yolofino]

PPF on a baby name? Are you planning a retirement in 10 months of birth? If you ask a financial enthusiastic people, PPF is overrated they say.

Disagree. After 15 years, the PPF account can be extended every time for 5 years, effectively making it tax-free FD of 5 years.

It's best if one creates a PPF account as early in life as possible. It's actually very underrated.

 

[thanix]

I want to open a bank account for my sister's baby boy (10 months old), Please suggest me which banks provide option to keep maximum balance of 50L .

SBI limits at 10lakh, also planning to open PPF account in name of baby. Please suggest

Not sure about baby but HDFC as well ICICI Bank has kids account. It will be tied to one of the parent account. Please check on how much balance you can keep in it.

 

[panchabhut]

I have a ICICI minor acct in the name of my daughter, with a Sukanya Samriddhi Acct linked to it. However, not sure about the max possible amt.

 

[panchabhut]

PPF on a baby name? Are you planning a retirement in 10 months of birth? If you ask a financial enthusiastic people, PPF is overrated they say.

PPF interest is 100% tax free. Present rate is 7.1%, which effectively works out to more than 10% pre-tax return for those in 30% bracket. Also, after 15 years, it would become practically like a savings acct, with anytime partial withdrawal possible.
For a girl child, SSY is better than PPF due to higher rate of interest, but for a male child, PPF is definitely a good option.

 

[Darthvader]

PPF on a baby name? Are you planning a retirement in 10 months of birth? If you ask a financial enthusiastic people, PPF is overrated they say.

Answers from @panchabhut and @yolofino are precise.
Concept is to start early so when kid turns 20 Years can utilize that amount for higher studies or anthing. Hence i am planning to start early .

 

[Darthvader]

Not sure about baby but HDFC as well ICICI Bank has kids account. It will be tied to one of the parent account. Please check on how much balance you can keep in it.

Thanks i will have to visit branches and get this answered, Online not much info i got on keeping maximum amount.

 

[Darthvader]

What's your purpose to open a bank account?

If you like to invest 50L for short term and relatively safe place, go for liquid mutual fund. You may also create FD.

Dump the excess money for Kid's future. Thanks FD i have considered but selecting the right banks is big question.

 

[bugmenot]

Dump the excess money for Kid's future. Thanks FD i have considered but selecting the right banks is big question.

If you are going with FD, split the FD amount in multiple banks with multiple maturity, which is called FD Ladder.

If liquidity is not concern and willing to take risk then there are other good options beyond FD as this is for your kid's future. You have very good runway.

 

[panchabhut]

Dump the excess money for Kid's future. Thanks FD i have considered but selecting the right banks is big question.

Then better to create multiple FDs with annual incremental maturity, created in such way that maturity value is around 1.50 L in each case - so that the maturity value can be transferred to PPF.
Also, try not to keep all eggs in one basket (bank)

 

[ashwinkashwink is verified member.]

Contact Bob or Indusind..

 

[pradeepG]

Contact Bob or Indusind..

what do they have??

 

[Deathsnatcher]

PPF interest is 100% tax free. Present rate is 7.1%, which effectively works out to more than 10% pre-tax return for those in 30% bracket. Also, after 15 years, it would become practically like a savings acct, with anytime partial withdrawal possible.
For a girl child, SSY is better than PPF due to higher rate of interest, but for a male child, PPF is definitely a good option.

can we deposit money in SSY using credit cards? anyone tried?

 

[CC-Muncher]

You need money after 20years. Then why FD's? Invest in stocks or MF. You can be aggressive for 12 to 15 years and then move to debt or FD as per your Comfort

 

[panchabhut]

can we deposit money in SSY using credit cards? anyone tried?

No. Only Acct to Acct trfr is possible.

 

[Deathsnatcher]

You need money after 20years. Then why FD's? Invest in stocks or MF. You can be aggressive for 12 to 15 years and then move to debt or FD as per your Comfort

i have some spare funds so was thinking why not here
and as per stocks i am already invested and now need to dip to invest more
but the scheme looks good and its not much i feel in my opinion ...was thinking a way to park 1.5 via cc here in sukanya so asked.

 

[CC-Muncher]

i have some spare funds so was thinking why not here
and as per stocks i am already invested and now need to dip to invest more
but the scheme looks good and its not much i feel in my opinion ...was thinking a way to park 1.5 via cc here in sukanya so asked.

Ssy interest rate is way less when you compare other assets for 20yr horizon

 

[Deathsnatcher]

Ssy interest rate is way less when you compare other assets for 20yr horizon

Can you explain this ? sounds like a logical reason not to invest in SSY