As a parent, you don't have to think about your financial health but your kids too. All good habits need to be taught young to develop a strong foundation for your child. That is why it is essential to teach them the importance of money and financial well-being.
One way to do that is to opt for a savings account for your child. It will encourage them to have healthy saving habits, learn about money, and understand the concept of delayed gratification. So, here is everything you need to know about the best savings accounts for kids in Singapore in 2021.
What To Consider When Choosing A Savings Accounts For Kids
Before you choose a savings account, you need to consider a few things. Here are the top things that will help you make your decision:
1. Interest Rate
It is essential to look around and choose an account that offers a higher interest rate than others. It will allow the savings to multiply more, which is the entire point of having a savings account. Many banks also offer incentives and promotional rates, so be sure to check them out before deciding.
2. Minimum Opening Balance
Many kids’ savings account come with a minimum opening deposit balance that can range anywhere from $500 to $1,000. If you don't want to have this requirement, you need to look for a bank with a minimum opening balance.
Parents open kids' savings accounts to help children teach financial skills. Take them to the bank and start teaching them these skills by opening an account. After that, you can take them each month and teach them how to deposit their pocket money.
4. Monthly Fees
Most banks don’t have account maintenance or monthly fees for a kid's savings account. However, you should check if they have any monthly withdrawal limits or other hidden charges. It will help you make an informed decision.
Finally, banks provide many perks to attract parents to open kids’ savings account. For example, many offer subscriptions to education portals, discounts, and much more. It is worth it to check this out before making an informed decision.
Best Savings Accounts For Kids In Singapore 2021
Now that you know what you should look for, here are the top kids saving accounts in Singapore in 2021:
Interest Rate: Up to 0.10%
Age Limit: 18 years old
Start helping your kids save with the Citibank Junior Savings Account. Kids under the age of eighteen can opt for a savings account with the help of their parents. They can also track their funds as statements are sent from time to time.
When the child is fifteen, they can use Citibank's internet banking system, and they will be provided with an international ATM card. There is also no initial deposit and minimum balance to start with.
Interest Rate: Up to 0.05%
Age Limit: N/A
POSB My Account is best for kids of all ages. The $2 monthly account fee is waived for account holders below the age of sixteen. There is also no coin deposit fee, and you get a complimentary one-year student membership at the Popular bookstore.
Later on, you can also convert My Account to a DBS Multiplier Account, and you can save and exchange more than thirteen currencies. Because of these benefits, many parents choose the POSB My Account as the number one option for their kids. Keep in mind that an account fee of $2 per month will be charged after the age of sixteen.
Interest Rate: Can be till 0.20%
Age Limit: Sixteen years old
OCBC is another excellent option to help your kids get in the habit of saving their money. There is no coin deposit fee, and it is for all children below sixteen years old. There is also no initial deposit fee, which is excellent since you can deposit any amount you would like.
The best part about opening this account is that you get priority queue service on Sundays at all OCBC Sunday Banking branches. So, if you have any issues, you can get them resolved on a Sunday in no time. The monthly service fee has also been waived for this account.
Interest Rate: Up to 0.40%
Age Limit: 12 years old
If you have a child under 12, then the CIMB Junior Savers Account is ideal for them. The account offers a high interest rate of up to 0.40% that your kid will love to enjoy. However, you have to ensure that the account has a minimum balance of $1000.
CIMB offers a $100 credit card welcome gift on the saver's account, and you get to enjoy many discounts, invitations to events, and other perks. You will also receive your account upon your application, and you can enjoy monthly e-statements to track your account. It is an excellent option for kids if you can deposit the initial amount of $1000.
Interest Rate: Up to 0.375%
Age Limit: 16 years old
To open a Maybank Youngstarz Account, you will need to deposit an initial fee of $10. However, there is no fall-below fee that the account charges. You will receive many benefits after opening this account, such as:
If you want your youngster to enjoy these privileges, it is ideal for them to open this account. They will get into the habit of saving, and they will enjoy these perks in no time. It is exclusively for all children below sixteen, which is the perfect age to help cultivate good financial habits in your kid.
Pros Of A Kids Savings Account
Now that you are familiar with all the top banks, here are the top advantages of opening a savings account for your kid:
1. Cultivating Saving Habits
Kids need to know the importance of saving money from an early age. Opening a kids savings account allows them to have some sense of financial responsibility and create good habits. You will have set a strong foundation for them to budget their money and save early.
2. Earn Interest
All kid's savings accounts offer an interest rate to the users. Kids make a small deposit each month, and they can easily earn a decent amount in interest. It will allow them to increase their money without doing much.
3. Fewer Fees And Costs Than Other Accounts
Many kids' savings accounts out there don't charge any maintenance fee or an initial deposit fee. These types of accounts also have fewer costs and fees than other types of accounts. Some banks might charge some sort of fees, but it will not be much because it is a kids' account.
4. Low Age Requirements
You can open a kids' savings account at any age since there is no requirement. However, some banks will only let you have the account till the child reaches a certain age. The maximum range is 18, after which your kid will have to shift to a standard bank account.
5. Easy To Open
The process of opening a kids' savings account is simple. You will not have to deposit multiple documents and fees, and other things. A few requirements need to be met, and the account will open in no time.
Cons Of A Kids Savings Account
Here are some of the cons that may come with opening a kids savings account:
Keep in mind that the kids' savings account does not come with a debit card. However, many banks do offer an ATM card once your child has reached a certain age. For example, they can grant an ATM card when your child reaches fifteen years.
2. Transaction Access
Some banks allow kids to deposit and withdraw money from the account on their own. However, many others require a parent’s signature. That is why it is always best to see the fine print and understand who's legally required to sign for the kid to access the funds in their account.
That was your complete guide to the best kid's savings accounts in Singapore in 2021. It is essential to help children develop these habits early to understand the importance of financial well-being. So, go through our list and choose anyone from our top five choices.
All banks offer unique things to their customers and have different requirements. That is why the one that is ideal for your kid depends on your needs and preferences. Once you open the account, your kid can start saving in no time.
Once the age limit is up, you can either convert the account to a regular savings account or transfer the funds to your account. So, what are you waiting for? Teach your kid to save now.
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