Parents planning to open savings accounts for their children should look for those with high interest rates, low account fees and useful banking facilities, according to John Miller CEO of http://www.qropshelpcentre.co.uk.
It’s never too early to start good money habits. And one of the best ways to raise money-smart kids is by opening savings accounts for children when they are still young. With so many banks and finance companies offering various junior bank accounts, settling for the right savings account will need some serious thoughts.
Here are the few important things for parents to consider when choosing savings accounts for their children.
High Interest Rates
In general, children’s savings accounts pay a higher interest rate compared to transaction or savings accounts for adults. Interest rates for junior savings accounts vary from bank to bank, though. Some pay much higher interest rates with certain conditions.
For example, in Australia, the BankWest Kids’ Bonus Saver offers a very high interest rate – at one point 10% per annual bonus interest rate – provided that monthly deposits of between $25 and $250 are made during the 12 months the account is active and that no withdrawals are made. Such kids’ savings accounts are extremely useful to earn good returns and for very young children who still haven’t started spending money on their own yet.
No or Low Account Fees
Look for children’s savings accounts with no or very low account fees. Most kids’ savings accounts don’t come with fees and charges. So this is not that big a problem. However, fees may apply if there are frequent transactions. For older children who will be making lots of deposits and withdrawals, look for a savings account with unlimited free transactions.
The Choice Youth package from Westpac designed for young people under 21, for example, allows account holders to have zero-fee unlimited banking transactions at all branches, ATMs, over the phone and the Internet.
Useful Banking Facilities
If the aim is just to save money, a junior savings account with a very high interest rate that discourages withdrawals such as the BankWest Kids’ Bonus …