Opening a savings bank account for children should be considered in this modern age. Gone are the days when/where only adults(mothers, fathers and elder siblings) are only allow to own bank accounts. The truth is there are various reasons why you should open a savings bank account for your children.
By children we are referring to any child below the age of 18years (unborn child inclusive). Opening a savings bank account for your children will help them acquire money management skills at a very tender age. This will in turn help them when they grow into adults.
Fortunately lots of banks offer this feature and anyone can apply. Another interesting part of the children bank account is that the parent or guardian gets to be the custodian of the account until the child/children becomes an adult.
There are some general features and benefits associated with opening a savings bank account for your children. We’ll take a look at it but note that there are slight variation from bank to bank. So be sure to ask your bank for details before you apply.
GENERAL FEATURES OF SAVINGS BANK ACCOUNT FOR CHILDREN
- Minimum opening balance of N1,000.00. For as low as $3 you can open a savings account for your child in your bank.
- No monthly maintenance charge. Unlike regular bank account that attracts monthly maintenance charge, this savings account is free of this charge.
- The account is opened by the parent and held in trust for your child until the child becomes of age.
- Competitive interest rate.
- Lodgment of dividend warrants/cheques in the child’s name.
- Direct debit instructions for the payment of the child’s school fees (no charges).
GENERAL BENEFITS OF SAVINGS BANK ACCOUNT FOR CHILDREN
- Free exclusive membership of your child in the Early Savers Club.
- Exposure of your child to practical financial management skills.
- Access to the Early Savers website.
- A passive way to save up for the future of your child/children.
- Teaches your child a vital life lesson i.e the importance of saving money.
No doubt the savings bank account for children is a good way to better the life of your children. Truth be told, if you don’t teach your child financial management skills he/she will learn somewhere else. So make use of this banking option to teach your child one of the very vital lessons of life.
You can visit your local bank to ask for details regarding opening the savings bank account for children. It is one of the many ways banks are trying to help promote not just their business but also teach children values of financial management.