5 Best Savings Accounts For Kids

savings accounts for kids

Roughly 46% of the Philippine population is 19 years old and younger. This means that half the country’s population is yet to experience important milestones in their lives – graduating college, getting their first job, finding ‘the one’ and marrying. The list goes on. With so many life events they’ve yet to experience, it’s important for parents to help provide a brighter future for their children.

Parents can provide their kids a bright future through multiple ways. Aside from talking to them about basic money concepts, another way to teach them about money matters is by opening a savings account.  Giving them the responsibility of handling their own account teaches them important values and skills they need when they grow older. Moneymax.ph rounded up the top 5 savings accounts (in no particular order) for your teens and kids:

1. Equicom Kiddie Builders Savings Account
age limit: 0-13
initial deposit account: Php 500
min. maintaining balance: Php 500
maintaining balance to earn interest: Php 1,000 (1.00% p.a.)

Why it’s great for children

The Kiddie Builders Savings Account from Equicom Savings Bank is a great jumpstart account for your kids. Aside from the 1.00% interest rate, the account also offers perks such as free medical and dental benefits from Maxicare Healthcare Corporation and Metro Dental. This includes free annual checkups, tooth extraction and more.

2. PS Bank Kiddie & Teen Savers Account
age limit: 0-12; 13-18
initial deposit account: any amount
min. maintaining balance: any amount
maintaining balance to earn interest: any amount (0.50% p.a.)

Why it’s great for children

The great thing about PS Bank’s Savers Accounts for kids and teens is that there is no minimum balance to start earning the 0.50% interest, which is higher than the 0.25% interest that’s the standard for a lot of other kids’ savings accounts. There is no minimum maintaining balance, so you’ll be safe from extra charges and fees for falling below the maintaining balance.

3. Metrobank Fun Savers Club
age limit: 0-18
initial deposit account: Php 500
min. maintaining balance: Php 500
maintaining balance to earn interest: Php 4,000 (0.25% p.a.)

Why it’s great for children

The Metrobank Fun Savers Club (FSC) is another great option because it includes an additional free education trust benefit worth Php 50,000 with the minimum average daily balance (ADB) of Php 4,000. With the high costs of tuition today, the educational trust benefit is added help to your child’s education. Aside from the educational benefits, the FSC account also includes personal accident insurance.

4. Maybank Yippie Savings Account
age limit: 0-12
initial deposit account: Php 500
min. maintaining balance: Php 500
maintaining balance to earn interest: Php 5,000-199,999.99 (0.50% p.a.); 200,000 above (1.00% p.a.)

Why it’s great for children

Maybank’s Yippie Savings Account offers a 1.00% interest rate for accounts with balances over Php 200,000. For smaller accounts, the interest rate is 0.50%. Aside from the higher interest rates, Maybank’s Savings Account for kids also includes insurance benefits covering personal accidents and medical reimbursements.

5. Planters Development Bank SME Kiddie & Teens Club
age limit: 7-12; 13-19
initial deposit account: Php 500; Php 1,000
min. maintaining balance: Php 500; Php 1,000
maintaining balance to earn interest: Php 1,000 (0.50% p.a.); Php 2,000 (0.50% p.a.)

Why it’s great for children

Plantersbank’s SME Club for teens and kids is a great vehicle to get your kids to start saving. For a balance as low as Php 1,000 (Php 2,000 for teens), you can earn 0.50% on interest. This is twice the interest rate on a lot of other kids’ savings accounts.

What do I need?

Now that you know which savings account you want to open for your child, you’re ready to go to the bank of your choice. Once there, you’ll be asked to fill up a few forms and submit supplementary documents.

Typical bank forms include the Customer Information Sheet (CIS) and a couple of signature cards while supplementary documents include valid IDs, the NSO Birth Certificate of your child, and your latest billing statement. If you want detailed steps on how to open a savings account for your child, read this article.

The Best for Your Kid

Opening a savings account for your teens and kids is a good way to start teaching them the basics of personal finance. Having a savings account will give them the opportunity to learn basic concepts such as saving, tracking finances, and compound interest. Learning basic money habits is an important value for kids and adults alike.

As Randell Tiongson, director of the Registered Financial Planner Institute, Philippines, says in his book entitled Lessons in Personal Finance, “As parents, we should also teach our children values and principles that will hone their character.”

Opening a savings account is not only about financially providing for your children, but giving them the responsibility to handle their own money at a young age which will teach them habits and values that develop their character.

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