How to Change A Minor Bank Account to a Major Account?

Once kids grow up to be above 18, the status of minor accounts needs to be changed to major. To convert bank accounts from minor to major, you can write an application to the bank authority, like the branch manager. 

If you are a former minor account holder or a parent of a minor with a bank account, here is everything you need to know about switching minor accounts to major accounts.

If you or your child has an account in the name of a minor and you or they have turned 18, it is advisable to inform the bank to change the account holder type. 

If you are wondering how to convert a minor bank account to a major, you can do it by following these steps:

• Step 1: The minor and guardian who opened the account need to visit the bank personally.
• Step 2: Minors will need to submit their PAN details. If the PAN was made when an applicant was a minor, they must remake it. This is because the PAN of a minor applicant does not contain their signature and photograph. 
• Step 3: After this, their account status will have to be changed from minor to major. 
• Step 4: Banks will ask for certain documents as proof from the minors for the completion of KYC that they need to submit.

To change minor to major in a bank account online, you must follow up to step 2, after which you can do the document submission process for KYC online. Changing this status is essential for various reasons.

When investing in a minor's name, you must also open a bank account. According to the mandate of the Securities and Exchange Board of India (SEBI), the amount you invest in such a scheme must come from the minor's bank account. 

Here are some important points you need to consider when changing the status of a minor account.

• Since the parent's name is added to the bank and investment accounts, they can make systematic transactions on the minor's behalf. However, after the child turns 18, the control shifts to them from their guardian. 
• After a minor turns 18, neither the parents nor they can transact from that account. It remains inoperative until the account's status is changed.
• Moreover, all systematic investment plans (SIPs), systematic transfer plans (STPs), and systematic withdrawal plans (SWPs) are also suspended. 
• Minor accounts lack various banking features. In that sense, they are restrictive compared to normal accounts. 
• A major account has no deposit limits. Moreover, it provides facilities like Internet banking, a chequebook, and a credit card/debit card, which are not subject to restrictions and safeguards.

This is why it is crucial to alter the status of a minor’s bank account to major at the right time so that the account holder can use it without any limitations on banking transactions.

To change the status of a minor account to a major, you have to go through the following steps-

• Step 1: After completing the KYC formalities with the bank, you can get a status change form to alter the minor account to a major account. 
• Step 2: After getting the form, complete the necessary details and attain a stamp from your banker. It is also mandatory for the banker to do a signature attestation on it. 
• Step 3: You must submit the form and other necessary KYC documents and a copy of your PAN card to the RTA's office.
• Step 4: The minor must also submit a letter to the bank manager for minor to major account conversion. The letter should specify all the details and request a status change from the bank’s side.

The letter you write to the bank to request a status change after you turn 18 is an important part of the process.

The time taken to convert a minor account to a major bank account tends to differ across institutions, ranging from a single day to as long as 1 to 3 weeks.

This process starts as soon as you submit the minor to major bank account letter and the required documents.

Suppose you had opened a bank account as a minor and provided the same account number to a company after becoming a major. It will create difficulties for the company in transferring funds to that account. To ensure there is no such glitch that creates problems in future transactions, you have to write a letter to the bank for the process of changing the status.

Here is a sample format you can write to any bank for your account status change.

Here is how you can write a minor to major status conversion letter to the bank's branch manager where you hold your account. 

Date- __/__/__ 

To, 

The Branch Manager,

_______(Bank Name),

_______(Branch Name), 

Subject: Application for Minor to Major Account Update/ Request for Converting Minor Account to Major

Respected Sir/Madam,

My name is [name of account holder] and I opened a minor account in [insert date] at the age of [insert age] with the help of my guardian. I am writing to inform you that I have turned [insert age] on [insert date]. 

Therefore, I request you convert my minor account to a normal savings account with all the facilities as soon as possible. Here is the basic information about my account.

• Account number- [input details]
• Address- [give details]
• Contact number- [input information]

Please find my birth certificate and other additional documents enclosed with this letter. 

Thanking You,

Yours Sincerely,

[Signature of account holder]

You can alter certain details in the sample letter according to your needs. Submit this letter along with the other documents to the concerned bank personnel.

Since bank accounts of minors become non-functional as they turn 18, you should complete the conversion process from minor account to major account as soon as possible. Contact your bank about any additional procedures you may need to follow.