A savings account can help you keep a track of your expenses, thereby allowing you to manage the hard-earned money wisely. While all adults must have a savings account in their name, opening a savings account for a child wouldn’t be a bad idea either. In order to educate your kid about money matters, you must make them aware about banking and transactions. And this is where a kids’ savings account can prove to be really helpful. There are numerous banks that offer the facility of kids’ savings account. You can easily compare different offers provided by various banks and open a savings account for a child with a bank that appeals to you the most.
There are several benefits of opening your kid’s savings account. Some of them are mentioned below:
Benefits of Savings Account for Children
- It teaches them the basics of money management
- It inculcates the habit of saving
- It teaches them to plan ahead and stay focused on their goals
- They can learn how to deposit a cheque using a savings account for children
- It helps them understand the importance of money
Now that you are well aware of the benefits of kids’ savings account, let’s proceed to check out some important factors that you must consider before opening a savings account for your child.
- Type of Bank
It is advisable to open your kid’s savings account with a reputed bank. This is because the services offered by the bank will play a vital role in educating the child about the different aspects of money management.
- Age of your kid
Usually, kids’ savings accounts are joint accounts, wherein parents are joint holders with the kids. Since the child is a minor, it is advisable to choose a savings account keeping the child’s age into consideration. You can opt out of a few facilities, which may seem to be redundant.
- Check the rates
When opening a savings account, you must take a close look at the interest rate offered by the bank. By opting for a bank with a high interest rate, you can grow money relatively faster while making your child aware of financial transactions.
- Fees and charges
Make sure that the kid’s savings account doesn’t charge you a maintenance fee. Also, be sure that there are no hidden charges levied by the bank on the kid’s savings account. Lastly, opt for a savings account that has the lowest minimum balance requirement.
- Services offered
You must enquire whether there are any special services offered by the bank to make your kid enjoy banking facilities. Also, opt for a regular savings account so that the child can learn about banking facilities in a better way without any complexity.
- Customer service
You must open your kid’s savings account with a bank that has efficient customer service. To get a better idea of the bank’s customer service, you can browse through the online reviews of its existing customers. It is best to open a savings account for a child with a bank that promotes financial education.
By considering these things before opening a savings account for your child, you will be able to make the right choice. In case of any query, you can visit the bank branch and seek the help of the bank representatives. While it’s good to educate children about basic banking transactions, as a parent, you must always keep an eye on the transactions your minor children make.