There are two ways to apply: AU Bank website AU Bank branch

If your child is a resident of India, is under 18 years of age, and has the necessary government-issued KYC documents, he/she can open an AU Kids Savings Account.

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What is a Kids Savings Account?

A minor’s savings bank account is a Savings Account for children under the age of 18 years. Such an account can be used by the child and managed by a parent or guardian. The interest rate is generally high, and the child can use the account to save money and multiply it with monthly interest. A Kids Savings Account can be used to teach children the importance of saving money and using it rationally. of the retail product serving the purpose of loan funding to an individual or an entity for the purpose of purchase/ construction/ upgradation of residential property or acquisition of land and construction to be used for residential purposes.

What is the interest rate on the AU Kids Savings Account?

Our Kids Savings Account interest rates are competitive and slightly higher than those of other banks. For more details please visit our Savings Account interest rates page.

At what age can a child have a savings account?

Children under the age of 18 years can open a Kids Savings Account.

Are Kids Savings Accounts tax-free?

Typically, children have no earned income. Therefore, the interest earned from a Kids Savings Account is taxed under your gross income as per the applicable tax slab. The interest is added to ‘Income from Other Sources’ for you. However, if the child is earning, you can claim a tax exemption of INR 1500 per minor child under Sec 10(32) of the Income Tax Act, 1961.