Save Smart. Should you take these offers into account?

The need for a bank account is obvious, especially after demonetisation. The young — those in the range of 18 to 35 years of age — have a few choices from banks such as State Bank of India, Axis Bank and IDBI Bank. These accounts are normal savings accounts, but with some tweaks and modifications for the needs of the younger consumer.

To open a youth savings account, you must be in the age bracket specified by the bank, typically at least 18 years of age. South Indian Bank stipulates that you must be at least 20 years old if you want to open its Youth Plus Savings account.

The maximum age is capped at 35 years as in the case of Tamilnad Mercantile Bank and South Indian Bank while State Bank of India and Axis Bank restrict the upper age limit to open the account at 30 years and 25 years, respectively. It is to be noted that the age limit is only for account opening and the account would remain active for normal operation after you cross the upper age limits specified.

This being a specialised account for the youth, age proof is an important document among other documentation mandated under Know Your Customer (KYC).

For age proof, birth certificate, Class 10 certificate, school leaving certificate or any of the documents with the date of birth printed are accepted by banks. If you are a student, a certificate from your head master or the principal is all you need to open the Yuvashakti SB account in Karur Vysya Bank.

These accounts offer various features. Specialised debit cards, zero or lower minimum balance requirement are offered by all the banks.

IDBI Bank and South Indian Bank offer you project work at their banks if you have IDBI Bank’s ‘Being Me’ or South Indan Bank’s ‘Youth Plus’ savings account. Tamilnad Mercantile Bank offers a personal accident insurance cover for ₹1 lakh.

IDBI Bank offers special rates on education loans for its ‘Being Me’ savings account customers. South Indian Bank also offers a free email subscription for its ‘Students’ Economic Forum.

Axis Bank offers a special mobile application for its ‘YOUth Savings Account’.

This app enables the user to check account balance, transfer funds and recharge the mobile phone. Also, account opening charges waiver for demat and trading accounts, penalty waiver for non-maintenance of average balance for the first month, are some of the other features offered. SBI offers you only 20 cheque leaves for free.

You will be charged ₹2 or ₹3 thereafter depending on whether your quarterly average balance is more than or less than ₹25,000, respectively. But other banks offer 40 to 60 cheques a year for free after which they charge ₹2 per leaf in many cases. Also, you cannot opt for an add-on debit cards with Axis Bank’s YOUth Savings Account. IDBI limits add-on cards to one.

Is the specialised savings account a good option that the youth should look at? Not necessarily. For instance, Axis Bank charges an annual fee of ₹400 for the debit card issued under its YOUth Savings Account.

This is higher than the ₹150 charged for Axis Bank’s normal debit card under the usual savings account.

Naveen Kukreja, Co-founder & CEO, Paisabazaar.com, says that youth savings accounts are mostly a branding exercise that banks do by tweaking the regular savings account.

So, one can hunt for features that suit one’s needs, for instance, offers on debit card use, and can even get a better deal by opening a regular savings account. “DBS Bank’s DigiSaving Account and Kotak’s Jiffy Neo Account outscore regular youth savings accounts on several key features like offering higher interest rates (6-7 per cent) and debit cards with higher purchase limit and lower annual charges.

Additionally, DigiSaving account provides attractive cashback and discounts offers of up to 30% on dining, movies, travel, groceries and other spends.

Kotak’s Jiffy Neo waives off 2.5% surcharge on fuel spends; these are not explicitly termed or named as youth savings accounts,” says Kukreja.

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