Does minor need a bank account before opening a demat or trading account?

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No, a separate bank account in the minor's name is not required.

Minor needs to be one of the Bank Account holder either as Sole Holder or jointly with Guardian and or other siblings. Simply add a minor to any of your (Guardian) bank accounts. This is sufficient to open a demat / trading account.

Please do not fall into the trap of bank officers who will try hard to open a separate account in the kid's name.

Anyway, for tax purposes, minor income is added to the parent's income, it doesn't make sense to have a separate bank account.

Topic: Minor Demat & Trading Account Explained - IPO, Tax, NCD FAQ Article

1 Comments

1. Rakesh Sonawane

| Link|April 5, 2021 3:23:07 PMReply

I have contacted share khan and up stocks, they are asking minor bank account. Minor having adhar and pan, can anyone advice broker accept guardian bank account for minor

1.1. Rishu Gupta

| Link|April 13, 2021 9:23:56 PM

Dear Sir, I am also ready with PAN card and Adhaar card. Please can you help if an IPO is alloted, how will I get the money? Assuming Zerodha is my minor account holder but condition of trading in minor does nto allwo me. So how will i get back the money if IPO alloted? Or How can I sell, if IPO alloted.
Please guide.

1.2. rahm

| Link|January 16, 2022 7:44:54 PM

did you open minor demat account?

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