The savings bank account, designed for children right from day of birth and above, can be opened with a minimum initial deposit of Rs 10.

The account, also eligible for students undergoing various courses, can continue even with zero balance. The new product comes with cheque book and withdrawal facility for children above 12 years.

Besides free transfer of funds to the account from parents’ account, internet banking facility on request, it also provides for add-on credit card and ATM card for children above 12 on authorisation from parents.

The product, which was launched by Union Finance Minister P Chidambaram, also provides for transfer of balance in excess of Rs 10,000 to term deposit account in multiples of Rs 5,000 to earn more interest for the child.

The account, which entails free collection of cheques/DDs gifted to the child - upto Rs 25,00 per annum, does not attract fee for payment of school fees, hostel fees etc through the account, while offer of education loan is at a concession of 0.50 per cent on prevailing rate.