State Bank of India (SBI) has introduced Pehla Kadam and Pehli Udaan savings account for minors. “Pehla Kadam and Pehli Udaan (PKPU), are complete bouquets of banking products, that will not only help children learn the importance of saving money but will also allow them to experiment with the ‘buying power’ of money," the SBI official website says. One also doesn't need to maintain Monthly Average Balance (MAB) for both accounts. There are certain advantages of Pehla Kadam and Pehli Udaan savings account like photo embossed ATM-cum-debit card, auto sweep facility and internet banking facility.

Here are some of the important features of SBI’s Pehla Kadam and Pehli Udaan savings accounts:

1) Eligibility

Pehla Kadam: A minor of any age can open this account, but it has to be jointly opened with the parent or guardian.

Pehli Udaan: This account can be opened in the sole name of the minor above the age of 10 years who can sign uniformly.

2) Transaction limit

Both the accounts have a transaction limit of 5,000 per day, in case of internet banking, and of 2,000 with mobile banking. One can make bill payments, inter-bank funds transfer (NEFT only), get demand drafts and open e-term deposits from these accounts.

3) Interest rate

The interest rate on Pehla Kadam and Pehli Udaan is similar to savings bank account. For savings deposits balance less than 1 lakh, SBI offers an interest rate of 3.25%. On balance over 1 lakh, it offers an interest rate of 3%.

4) ATM-cum-Debit Card

Pehla Kadam: Child’s photo embossed ATM-cum-Debit Card with withdrawal/POS limit of 5,000 will be issued in the name of the minor and guardian.

Pehli Udaan: Photo embossed ATM-cum-Debit with withdrawal/POS limit of 5,000 will be issued in the name of the minor.

5) Chequebook facility

Pehla Kadam: Personalised chequebook (with 10 cheque leaves) will be issued to the guardian in the name of minor under guardian.

Pehli Udaan: Personalised chequebook (with 10 cheque leaves) will be issued if the minor can sign uniformly.

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