A journey of a thousand miles starts with the first step. The first step is ultimately important to steer your kids toward a bright and sound financial future.
This could be done by opening a kid’s savings account for them. What are the criteria that you shouldn’t overlook so that you can ensure the safety of your child at home and the safety of their money in the bank?
Table of Contents
Criteria For A Kid’s Saving Account
1. Proximity to the bank
The idea of driving for several hours whenever your kids require a visit to the bank wouldn’t be an appealing for you. It is smart to ensure finding a bank in your neighborhood or at a location that’s convenient for you.
2. Interest rate
In order to get your kids the best savings account, pay close attention to the following:
- The annual interest rate
- Whether it is a tax-free savings account
- Minimum monthly ADB requirement
- Minimum maintaining balance to earn interest.
3. Types of bank saving accounts
STATEMENT ACCOUNT
Your child will get a monthly report of the account such as the deposits and withdrawal that have been done, the interest that has been credited as well as any banking service fees.
PASSBOOK ACCOUNTS
Your child will get a little booklet that every transaction such as deposit and withdrawal will be posted into.
4. Banking / Service Fees
Don’t ever let any statement regarding the banking or service fees slip through your fingers. Otherwise, you may end up a bunch of jaw-dropping fees that have been charged to your account whenever you make any transaction, such as early account closure fees, and paper statement fees.
5. Required Documents
The following are some of the most common requirements to open a kids savings account:
- Birth certificate of child
- School ID (for students)
- Baptismal certificate
- 2 valid IDs of parents/guardian
- Proof of address / Billing Statement
- Two 1X1 Photo of children and parents (just in case)
Once you have finished your research on the banks with a final decision, it’s time to break the good news to your children. They’ll definitely thrill at the idea of having a real piggy bank.
With a goal to help Filipinos lead healthier financial lives, Moneymax regularly publishes tips and tricks on personal finance and lifestyle, among many other topics. For more finance-related news and articles, follow Moneymax on Linkedin.
