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If you’re wondering how to secure your child’s future, opening a minor account online is a simple and smart choice. A minor account opening online lets you build savings for your child’s education, dreams, and unexpected needs while teaching them about money management early on.  

Many banks and financial institutions now offer convenient online processes with special benefits for minors, making it easier for parents to plan ahead. This blog explains how you can open a minor account online, its key benefits, and what you should keep in mind while choosing the right bank for your child. 

To get started, learn about its benefits and the process of opening a bank account for a minor.  

Opening a Bank Account for Minor

You can go for minor account opening online or offline, depending on your convenience. It is a simple procedure requiring nominal documentation. The process needs two sets of documents: one includes verification of the minor and the other of the parent.  

After getting all the documents ready, you can proceed to open a bank account for a minor.  

1. Online Process to Open Minor Saving Account 

Opening an account for your child digitally is both quick and convenient. Follow these steps: 

• Step 1: Visit the bank’s website and choose the appropriate savings account for a minor 

• Step 2: Complete the application process, providing the necessary details 

• Step 3: Submit the digital copies of your documents 

• Step 4: Complete the e-verification process (this may include a video call showing your documents for authentication purposes) 

• Step 5: Transfer funds to the new account 

• Step 6: You will receive a confirmation upon successful verification 

Also Read: How to Switch Bank Accounts?  

2. Offline Process to Open Minor Saving Account 

This procedure is similar to opening a minor account online. You can follow these steps and complete the procedure with ease: 

• Step 1: Visit the nearest branch of your selected bank 

• Step 2: Ask for the application and fill it out with the necessary details 

• Step 3: Attach the required documents of both the child and guardian 

• Step 4: Pay the needed amount to activate the account 

• Step 5: Upon approval, you will receive all the account details and login credentials  

You can also ask the representative for internet banking access and debit cards according to your preferences.  

Rules to Open Minor Saving Account 

The Reserve Bank of India has set certain guidelines that are referred to as minor account rules. Remember them when you are thinking about opening an account for your child.  

• A minor of any age can open a recurring bank deposit account, FD account or savings account.  

• A minor over 10 years of age can start and manage a savings account on his or her own.  

• Banks can have their own policies in terms of age limit and amounts up to which minors can operate such accounts independently.  

• Once the minor is 18, the bank needs to confirm the account balance and take fresh signatures to transfer the operation and management.  

• Banks need to ensure that minor accounts are not overdrawn by adding safety checks.  

Benefits of Opening Kid’s Saving Account 

• Teaching kids about managing finances 

• Having funds on hand for emergencies related to the child’s education or health 

• Saving for the child’s future. Educating kids on making investments 

• Purchasing electronics or a cycle/motorcycle for the child 

• Spending on a child’s travel, sports or other academic and non-academic activities 

Factors to Consider Before Opening an Account for a Minor 

The process can be empowering as it encourages you to save for your child’s future and your child can also become financially aware and disciplined. Both you and your child will be joint holders of such savings accounts. Once the child turns 18 years of age, the account may be converted from a minor’s account to a regular account.  

While this can be a rewarding experience, consider certain factors for the best experience: 

• Consider ease of access and control of the account via net and mobile banking 

• Compare interest rates and see if you can get the benefit of compound interest to enhance savings 

• Know the minimum balance required and the charges in case the balance falls below this threshold 

• Check the features and services offered to you, such as a debit card for you and your child as well as savings incentives, if any.  

Also Read: Best Saving Accounts in India. 

Opening a bank account for a minor can be a good investment, becoming a financial bedrock to support your child’s future. To make regular expenses for your child’s education, entertainment and more, you can rely on the Fibe Axis Bank Credit Card.  

As India’s first numberless credit card, it links to your UPI ID and offers 3% cashback on eligible transactions. With it, you can save more as you spend and avoid any joining and renewal fees. What’s more, you get free domestic lounge access too!  

Download the Fibe App or register on our website to get this credit card today.  

FAQs on Opening a Minor Savings Account 

Can a guardian withdraw money from a minor bank account?  

Yes, a guardian can withdraw money from a minor savings account and also set the limit.  

Is the interest on a minor savings bank account taxable?  

Yes, the interest gained on the balance of a savings bank account for a minor is generally taxable.  

Do we get an ATM card for a minor account?  

Yes, you can get an ATM card for a minor account. This also depends on the bank, so make sure you check beforehand.  

Can we transfer money to a minor account?  

Yes, you can transfer money to a minor account via cash, cheque or digitally.  

Are the interest rates the same for minor bank account holders? 

Interest rates can vary from bank to bank and account to account. Compare the interest rate before opening a minor savings account. 

Are you interested in switching bank accounts? All banks offer different kinds of benefits to their customers, which give you the liberty to choose your preferred options. If your current bank is not giving you the services you want, then swap your bank account.

Switching to a bank with all the facilities you need can help you attain maximum financial growth. To learn how to change bank account easily with just a few simple steps, read on.

Evaluate Why You Want to Switch 

Before making this decision of switching bank accounts, you must evaluate why you want to switch your bank. In most cases, you may be looking for better opportunities and services. Here are a few reasons that may be responsible for making you consider a bank switch:

• Moving to a new location
• Opening a joint account
• Paying exorbitant fees on existing account
• Getting poor customer services
• Getting higher interest rates from another bank
• Not being upgraded to better debit and credit cards 

How to Switch Banks 

You must follow these 7 steps to switch your account to another bank.

Step 1: Find Another Bank 

Find a bank that works for you and fulfils all your requirements. This ensures that you are getting an upgrade as compared to your previous bank. While searching for a new bank to swap bank accounts, you can look for these qualities/factors:

• Fees and charges 
• Interest fees on savings accounts
• Customer service
• Location
• Bill payment options
• Mobile banking services
• ATM availability
• Value-added services 
• Debit and credit cards and their benefits 

Step 2: Make a List of Linked Payments 

You may have multiple auto-debit payments linked with your current bank account. Before closing your existing account, make a note of these mandates to efficiently manage your payments:

• Automatic bill payments for utilities
• Recurring subscription payments for OTT platforms, magazines and more
• Recurring money transfers
• Automatic deposits

Also Read: How to Get Bank Account Statements?

Step 3: Open Your New Account 

After making all the necessary arrangements, you can open a new bank account by visiting your local branch or online. Here are common steps you can follow:

• Fill out the application form
• Submit self-attested photocopies of ID and address proof
• Submit your application
• Complete other formalities 

Step 4: Set Up a New Banking App 

Within a few days, you will receive your banking kit with your passbook, debit card, and chequebook. These documents prove that you have successfully opened a new bank account. Review the details carefully to further complete the process.

Upon receiving all these details, log in to your net banking account online as well as the mobile banking app and set up your debit card PIN. This way, you can continue using your new bank account and slowly replace the old one.

Step 5: Switch Bank Details 

Once your new banking app is set, you can start switching bank account details. Make sure you set up mandates using your new details for automatic payments.

Step 6: Move Your Money 

When everything is set up and ready to go, transfer funds from your previous bank account to the new one. The process can be completed within a few moments. However, this may take a while if you have a large amount in your account. This is because most transfer modes only allow you to send and receive a limited amount daily.

Step 7: Deactivate the Old Account 

Finally, you can close your account when your funds have been successfully transferred to this new account. To close your account, you will have to:

• Contact your bank and share your request
• Pay off the outstanding due (if any)
• On approval, destroy your debit card and chequebooks

People often swap bank accounts to another for better financial gains or premium services. If you’re looking for funds to upgrade your life or achieve a goal, the Fibe Instant Cash Loan can help you to get up to ₹5 lakhs with a flexible repayment tenure.

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FAQs on Switching Bank Accounts 

Does switching banks affect credit score? 

No, credit scores depend entirely on how you repay your loan and credit card bills. You can switch your bank account as often as you prefer, and this won’t hamper your credit score.

Can I switch banks if I have a loan? 

Most banks will let you close your account and open a new one even with an existing loan. However, it depends on the bank’s policy. In this case, reviewing the terms and conditions or speaking to customer care before deciding is best.

What if I encounter issues during the account-switching process? 

If something goes wrong during the switch, get in touch with the customer service of both banks. The banks will get it resolved as soon as possible.  

Can I keep my old bank account open for a while during the switch? 

Your old bank account will remain open until you close it. You can also maintain both accounts while you use the newer one more frequently. It is completely up to you.

When you open a savings account, you typically need to keep a specific balance in it, known as the Monthly Average Balance or MAB. Maintain it and you avoid MAB charges. Banks set an MAB so they can manage funds effectively and offer services such as cheque books, ATM access and branch transactions without billing you separately for each one. 

MAB, which stands for Monthly Average Balance, is not the amount you must hold every single day. It’s the average of your daily closing balances across the month, which means a dip on one day can be offset by a higher balance on another. That distinction matters more than most people realise, and it’s where the confusion usually starts. Understanding what MAB means in banking and how MAB charges work gives you a clear picture of what your account actually costs you. 

QUICK STAT 

Banks collected Rs. 7,086.63 crore from customers in FY26 as penalties for not maintaining the prescribed MAB in savings and current accounts. Among private banks HDFC Bank collected the most at Rs. 1,798.14 crore, followed by Axis Bank at Rs. 1,081.33 crore. Public sector banks collected Rs. 2,137.92 crore between them.  
Source: Finance Ministry written reply, Rajya Sabha, July 2026

MAB Full Form in Banking 

MAB stands for Monthly Average Balance. You’ll also see it written as AMB, or Average Monthly Balance, which means the same thing. Some banks use a quarterly version instead, the Average Quarterly Balance or AQB, where the same maths applies but across three months rather than one. 

It’s worth checking which one your bank uses, because the two behave quite differently. A quarterly average gives you far more room to recover from a lean month than a monthly one does. 

What is Monthly Average Balance (MAB)? 

MAB full form in banking refers to monthly average balance. It is the average balance you must keep in your savings or current account through a calendar month. The requirement varies by account type and, at many banks, by whether your branch is in a metro, urban, semi-urban or rural location. At the end of the month the bank calculates your MAB and levies a penalty if you’ve fallen short. 

Some banks offer zero-balance savings and current accounts, which are a sensible option if you’d rather not track a threshold at all. They typically come with fewer of the add-on features that balance-linked accounts carry, so it’s a trade-off rather than a straight win. 

How is Monthly Average Balance (MAB) Calculated? Formula & Steps 

Your MAB is the average of your closing balance at the end of each day for the whole month. Here’s how it works: 

1. Note your account balance at the end of each day 

2. Add up all these daily closing balances 

3. Divide the total by the number of days in the month 

PRO TIP 

Every calendar day counts, including weekends and public holidays. On a non-working day the previous day’s closing balance simply carries forward, so a large withdrawal on a Friday costs you three days of low balance, not one. 

Example of MAB Calculation 

Take an account across a 30-day month: 

MAB Calculation Result: What the Formula Gives You 

Monthly Average Balance = Total of daily closing balances / Number of days 

= Rs. 1,62,000 / 30 = Rs. 5,400 

So the MAB for that month is Rs. 5,400. If the month has 31 days, divide by 31 instead. February needs 28 or 29 depending on the year, which is why the same balance pattern can produce a slightly different MAB from one month to the next. 

A Second Example: When the Shortfall Bites 

Priya banks with a branch that requires an MAB of Rs. 10,000. Over a 30-day month she held Rs. 18,000 for the first 10 days, dropped to Rs. 6,000 for the next 10 after paying rent, then went back up to Rs. 12,000 once her salary landed. 

Her total is (10 x 18,000) + (10 x 6,000) + (10 x 12,000) = Rs. 3,60,000. Divided by 30, that’s an MAB of Rs. 12,000. She’s comfortably clear, even though her balance sat at Rs. 6,000 for a third of the month. 

Now change one thing. Suppose she held Rs. 18,000 for only the first 5 days and Rs. 6,000 for the remaining 25. Her total drops to Rs. 2,40,000, giving an MAB of Rs. 8,000 against a Rs. 10,000 requirement. That’s a shortfall of Rs. 2,000, and at a typical rate of 6% of the shortfall she’d be charged Rs. 120 plus GST. The takeaway: it isn’t how low your balance goes, it’s how long it stays there. 

What Are MAB Charges? 

MAB charges, also called non-maintenance charges, are what your bank levies when your monthly average balance falls below the required threshold. They are a service fee rather than a regulatory penalty, and banks set them at their own discretion. RBI Governor Sanjay Malhotra has confirmed that minimum balance limits for savings accounts are decided by individual banks and do not fall under regulatory jurisdiction. 

Banks use one of three structures, sometimes in combination: 

• A percentage of the shortfall, commonly 5% or 6% of the gap between your actual MAB and the required amount 

• A flat monthly fee, regardless of how large the shortfall is 

• A percentage of the shortfall subject to a cap or floor, such as 6% or Rs. 600, whichever is lower 

GST applies on top of the charge in every case. Most banks debit it automatically at month end and show it on your statement, so it’s easy to miss if you’re not looking. 

DID YOU KNOW? 

A shift worth knowing about: 10 of India’s 12 public sector banks have now completely discontinued penal charges for non-maintenance of MAB on savings accounts. SBI dropped them in March 2020, Canara Bank from 1 June 2025 and PNB from 1 July 2025. Private banks have largely gone the other way. 

MAB Charges: Bank-wise Comparison Table 

Requirements vary widely by bank, account variant and branch location. This is a snapshot for regular savings accounts, not an exhaustive schedule: 

Reasons to Maintain a Minimum MAB 

Staying above the threshold does more than spare you the charge. These are the practical upsides: 

• Chances of earning more interest: banks pay interest on your savings balance, so a higher balance earns more. Rates vary by bank and by balance slab 

• Access to offers: a healthier balance can qualify you for reward points, lifestyle benefits, a personal loan at a preferential rate or discounts on other financial products 

• Financial discipline: an MAB requirement discourages you from drawing the account down to nothing, which makes tracking expenses and holding to a budget considerably easier 

• A repayment buffer: keeping a cushion in the account means an EMI or standing instruction is far less likely to bounce for want of funds 

WATCH OUT 

To be clear on one common misconception: your savings account balance is not reported to credit bureaus and your MAB has no direct effect on your CIBIL score. The link is indirect. A buffer helps you avoid missed EMIs and bounced auto-debits, and those do show up on your credit report. 

Tips to Maintain the MAB 

• Pick an account that matches how you actually bank. If your balance fluctuates, a lower MAB requirement or a zero-balance variant will cost you less than a premium account you can’t sustain 

• Set a standing instruction to transfer funds in from another account on a fixed date each month 

• Check whether your bank lets you hold a fixed deposit instead of cash. Several treat an eligible FD as satisfying the MAB, which means the money earns FD interest rather than savings interest 

• Consider a sweep-in or money multiplier FD, where surplus above a set limit moves into a deposit automatically and returns when you need it 

• Track your balance through the mobile app or NetBanking and set a low-balance alert rather than checking manually 

• Review your statement each month so a non-maintenance charge doesn’t go unnoticed for half a year 

If you’re consistently paying MAB charges, the account is the problem, not your habits. Ask your branch to convert it to a lower-threshold or zero-balance variant. Banks will usually do this on request rather than lose the relationship. 

Maintaining a monthly average balance helps you avoid penalties and gives you access to a range of services and rewards at no extra cost. A steady balance is also a reasonable signal of financial stability, which can work in your favour when your own bank assesses you for a credit card or a loan. 

To increase your spending power, opt for the Fibe Axis Bank Credit Card and enjoy up to 3% cashback on your transactions. It is India’s first numberless credit card and links to your UPI ID, so it offers better protection against card fraud and identity theft. You also get zero joining and annual fees, a 1% fuel surcharge waiver and 4 free domestic lounge visits a year. Download the Fibe app or register on our website to get the Fibe Axis Bank Credit Card today! 

FAQs on MAB Full Form, Charges & Calculation 

1.What does MAB stand for? 

MAB stands for Monthly Average Balance. You may also see it as AMB, or Average Monthly Balance, which means the same thing. Some banks work on an Average Quarterly Balance or AQB instead, calculated the same way but across three months. 

2.What are MAB charges and how are they calculated? 

MAB charges are the fee your bank levies when your monthly average balance falls below the required threshold. Banks calculate them as a percentage of the shortfall, usually 5% or 6%, or as a flat monthly fee, or a percentage subject to a cap. If your requirement is Rs. 10,000 and your MAB works out to Rs. 8,000, a 6% charge on the Rs. 2,000 shortfall comes to Rs. 120 plus GST. 

3.How much is the MAB penalty for non-maintenance in SBI, HDFC or ICICI? 

SBI does not levy any charge, having waived savings account minimum balance requirements in March 2020. HDFC Bank typically charges 6% of the shortfall or a flat fee, whichever is lower, against a requirement of Rs. 10,000 in urban branches. ICICI Bank applies a flat fee plus a percentage of the shortfall. Both private banks revised their requirements during 2025, so check your bank’s current schedule of charges rather than relying on a figure you read elsewhere. 

4.Is there any savings account with zero MAB requirement? 

Yes, several. Basic Savings Bank Deposit Accounts, including those opened under the Pradhan Mantri Jan Dhan Yojana, carry no minimum balance requirement and no non-maintenance penalty at any bank. SBI, PNB and Canara Bank have also removed the requirement from their regular savings accounts, and most private banks offer at least one zero-balance variant, often a digital or salary account. 

5.What happens if MAB falls below the minimum required balance? 

The bank debits a non-maintenance charge from your account at month end, plus GST, and it appears on your statement. Some banks give a grace period of around 30 days before the charge applies. Repeated shortfalls can also mean losing fee waivers on services like cheque books or ATM transactions, and if the balance stays low long enough the charges themselves can push the account into a negative balance. 

6.Can I set up alerts to track my monthly average balance? 

Yes. You can set customisable balance alerts through NetBanking or your mobile banking app. Most apps also show your MAB for the current month against the required amount, so you can see mid-month whether you need to top up rather than finding out after the charge is applied. 

7.Can overdrafts affect my monthly average balance? 

They can. An overdraft is a short-term facility to draw funds against your account, and drawing on it reduces your credit balance. Many banks compute MAB on the credit balance only, which means an overdraft drawdown can pull your average down. Practice varies between banks and account types, so confirm with yours rather than assuming it’s neutral. 

8.Are there any rewards for maintaining a high monthly average balance? 

There can be. A higher MAB may qualify you for lifestyle benefits, reward points, a personal loan at a preferential rate or discounts on other financial products. The specific benefits depend on your bank and your account variant, and premium variants generally require a much higher MAB in exchange.