JSA is intended to be a long-term saving account with free insurance protection for children’s future needs. It is a piggybank for the future. Breaking the piggybank will incur a small cost. It discourages frequent withdrawals for daily spending needs. For daily use, the parents are encouraged to use normal saving account instead.
JSA is better than some life insurance product, such as EduSave, because the withdrawal conditions are not too strict, and the annual interest earned from JSA is better. Some banks block withdrawal until the children reaches 18th birthday or allow withdrawal only in case of terminal illness only.