I have savings account with Canara Bank. I am interested in opening savings account for my 1 year old. Is there any difference between savings account for adults and children? What are the tax implications of it?
I know a friend of mine who opened ICICI Young Stars account but she didn’t seek any benefit out of it. In my view, return wise there is no such difference. Minor account is usually opened under the guardianship. Whatever interest you will earn from this account will be clubbed with the income of the highest earning parent and will be taxed accordingly.