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Nurturing the Saving Habit in Children: Savings Scheme for Every Child

A child’s first touch with money happens in small and simple moments. It may start with a coin dropped into a piggybank, pocket money kept aside or choosing to wait today to buy something better later. These small actions plant the first seeds of financial understanding. They show children that money is not only for buying things right away. It can be saved and used for something more important in the future. Learning to save early provides children a sense of discipline. It teaches them that their choices matter. When this habit grows with them, they learn to plan better and make thoughtful decisions as they become adults.

Learning Through Everyday Experience

Children learn not just the act of saving but also attitudes toward money such as responsibility, prioritization and mindful decision-making, by observing daily routines at home. When parents discuss needs versus wants, compare options or plan purchases, children pick up practical thinking skills. These experiences help them understand how money fits into everyday life, even before they begin managing it themselves.

Support That Helps Children Grow

Opening a bank account for children gives structure to their early financial exposure. Indian Bank offers two accounts for minors, IB Smart Kid and IB Kishore, designed to introduce them to practical banking concepts such as deposits, balances and transactions. These accounts help children understand how formal banking works and prepare them for independent financial management as they grow, while also supporting families in building long-term financial discipline.

IB Smart Kid , Savings Bank Account for Young Children

IB Smart Kid is meant for children taking their first steps in financial learning, from the age of 1 day to less than 18 years, with parents or guardians opening and operating the account on behalf of the child. This helps the child build a strong financial base from the beginning. When parents deposit money regularly, it creates a habit of saving in the family. Children also understand that they have a special place where their money is kept safely. As they grow, they become aware that saving is helpful and important.

How IB Smart Kid Supports Families

This account helps families to save for future needs like school fees, hobbies and other activities. It also teaches children that money grows slowly over time. As they get older and start checking their account bank balance, they learn that being patient brings results. IB Smart Kid gently introduces the idea of thinking ahead and planning for tomorrow.

IB Kishore , Savings Bank Account for Minors Ready to Learn Banking

IB Kishore is designed for older children who can start handling small amounts of money with guidance. IB Kishore account is for minors aged 10 years up to 18 years, who can self-operate and can put their signatures.

Children can operate this account independently. Through this, they learn real money skills, how savings multiply, how to plan small financial goals and reach them.

How IB Kishore Builds Financial Responsibility

With IB Kishore, children learn to keep track of their deposits and withdrawals. They understand that even small, regular savings can turn into meaningful amounts. When pocket money or gift money goes directly into their account, they feel proud and responsible. This early learning helps them become more confident and aware as they grow older.

Smart Term Deposit Options to Nurture a Child’s Future

Parents seeking structured ways to build a financial cushion for their children can also explore our Term Deposit options. The Recurring Deposit (RD) allows families to invest small monthly amounts starting from ₹100 (and in multiples thereof) for flexible tenures ranging from 6 months to 10 years in multiple of three month, helping them build a planned corpus over time. For added flexibility, the Variable Recurring Deposit (VRD) scheme allows customers to vary the monthly instalment amount, starting from ₹ 500 and in multiples of ₹100 and upto a maximum of Rs.1 Lakh (maximum limit of ₹10 lakhs per month) with a tenure of 3 years. The Money Multiplier Deposit (MMD), a reinvestment plan with tenures from 6 months to 10 years, accepts deposits starting from ₹1,000 (in multiples of ₹100) and grows savings faster by reinvesting for compounded returns, making it ideal for longer-term goals.

Turning Saving into A Lifelong Value

Saving is not just about keeping money aside. It teaches patience, discipline and the ability to plan for the future. When children learn to handle their savings, they start making wiser decisions and grow into adults, who value safety, planning and long-term stability. A saving habit developed during childhood stays with them and serves them forever.

Indian Bank as a Trusted Partner

Indian Bank believes every child should have a strong and secure start. Through IB Smart Kid, IB Kishore, Recurring Deposit (RD), Variable Recurring Deposit (VRD)and Money Multiplier Deposit (MMD) , the bank offers simple and safe ways for families to help children learn good saving habits. These accounts support growth, inculcates discipline and prepares children for the future.

Learn more about the IB Smart Kid (here), IB Kishore (here), Recurring Deposit (RD) (here), Variable Recurring Deposit (VRD) (here) and the Money Multiplier Deposit (MMD) (here).