How to choose a savings account for your kids
Make sure you do as much research as possible when you're picking a savings account for your kids.
Most major banks, building societies and credit unions will offer savings accounts that have been specifically set up for children to use.
Look for a savings account that has features that will help your children's savings grow and that includes:
- no monthly service fees to operate the account
- no monthly transaction fees
- a low minimum opening balance
- daily interest on your children's savings
- "bonus" interest paid into your children's savings if there are regular deposits and no withdrawals during a month
- regular statements
- and can be operated on-line
Sometimes, the best accounts may be offered online only. So, make sure you investigate that option too.
There are banks that have special clubs for kids to join. You can also check to see if your school runs a school banking program. These programs are generally run by banks in co-operation with primary schools and offer an easy way for children to put their money in the bank.
Setting up a savings account for your kids will also help them to become financially literate too. Make regular visits to the bank with your kids and their piggy bank at the end of each month. It'll help them understand where their money is being kept.
When their bank statements arrive make sure you show them to your kids. Take a few minutes to sit down with them and explain the terminology that's used. Use simple language to explain words like deposit, withdrawal, account balance, transaction and interest.