Top Debit Cards for Kids

With the growing era of digitalization, kids must learn about financial literacy and money management from an early age. Teaching children the importance of handling money responsibly can set a strong foundation for their future financial well-being. Parents should take the initiative to make their child understand the importance of money and how learning to save money will help them in their adulthood.

As a response to this growing necessity, many banks now offer debit cards specially designed for children, which will help them learn how to manage their money. These specialized debit cards not only help kids access their money but also have features to encourage responsible spending and offer various benefits and rewards. This article explores some of the best debit cards designed for kids. These cards help children learn about money management in a knowledgeable way, under their parents’ guidance. Highlighting the features and benefits of these cards, the aim of this article is to assist parents in making well-informed decisions when choosing a debit card for their children.

Kids Advantage Debit Card (HDFC)

The HDFC Kids Advantage Debit Card is designed to introduce children to the world of banking. Available to children between 7 and 18 years of age, the card offers numerous benefits, such as zero liability on fraudulent transactions up to ₹4 lakhs and the option to convert purchases above ₹5,000 into EMI. The annual fee of the Kids Advantage Debit Card is ₹150, and to avoid service charges, you need to maintain a minimum average monthly balance of ₹5,000. With this card, a child can withdraw ₹2,500 at ATMs and spend ₹10,000 daily.

The card also provides insurance coverage for items purchased using the card, including fire and burglary protection worth ₹2 lakhs, as well as checked baggage insurance for travel outside India. Parents can open a Kids Advantage Savings Account for their child as long as they have a Savings Account with HDFC Bank, and minors above the age of 10 are eligible to open a self-operated minor account and receive an ATM/Debit card.

Prodigy Debit Card (Standard Chartered)

The Prodigy Debit Card from Standard Chartered Bank is designed exclusively for young savers aged 10 and above. This personalized debit card has a daily withdrawal limit of ₹5,000 on ATMs and POS terminals. Young cardholders can earn 2 Reward Points for every ₹100 spent and 20 Reward Points for every ₹100 spent during their birthdays. These rewards can be redeemed from an exclusive catalog of merchandise by contacting the phone banking service.  To be eligible for the Prodigy Debit Card, children should hold a Prodigy Savings account with the bank.

Young Stars Debit Card (ICICI)

The Young Stars Debit Card by ICICI Bank is designed to offer great benefits for young customers. With this debit card, you can get great discounts on shopping, dining, and more, and access all the benefits of an ICICI Bank Debit Card. The card comes with a daily withdrawal limit of ₹5,000 for ATMs and ₹3 lakhs for POS transactions for everyday transactions. Users can use the Young Stars Debit Card for online purchases, bill payments, and more by registering for Verified by Visa/MasterCard Secure Code, with a daily online transaction limit of ₹5,000. The card has extra security features like SMS alerts for all POS transactions, zero responsibility for unauthorized charges, and detailed billing to help you easily track your spending.

Kids PayWave Debit Card (IDBI)

The Kids PayWave Debit Card from IDBI Bank is one of the most beneficial cards for young kids. It comes with a minimal issuance fee of ₹150 plus taxes and an annual fee of ₹220 plus taxes, making it accessible for parents who want to teach their children financial responsibility. With a cash withdrawal limit of ₹2,000 and a purchase limit of ₹2,000 in a day, kids can learn to manage their money wisely. The card also rewards them with 1 loyalty point for every ₹100 spent, encouraging responsible spending habits from a young age. The card provides an insurance cover of up to ₹8000 for lost and counterfeit cards and is valid for kids residing in India. The card offers discounts at various merchant foundations, allowing kids to enjoy perks and benefits as they learn to manage their finances.

Bottom Line

Introducing kids to the concept of money management with the help of specially designed cards for children is an important step toward nurturing responsible and financially knowledgeable individuals. All the featured debit cards offer a range of benefits and features that teach children about spending wisely and saving for the future. By choosing the right debit card for their children, parents can educate their kids on good financial habits from an early age.