Opening a savings account for a child is no longer an afterthought- it is imperative.At child’s birth, it is very advisable for parents to give-in their time and money in ensuring a great future for their children. Some people even use saving account for baby gift. In the case of giving of time, the parents need to make sure they devote their time to the healthy growth and worthy development of these children. You need to give in your money also, but not by just spending their money lavishly on the children. They have to ensure they regularly save some certain amount of money for the upkeep and the education of the children as well as other things.
Reasons You Should Open a Kids Savings Account for Your Child
Many people would not really regard saving and some even see those that fuss about it as people who are too fearful. The candid truth is that saving has its own effect and we would briefly discuss it.
- A Preparation for The Future: As we progress in life, we are sure to encounter one unforeseen problem or the other. Saving helps the parents to easily withdraw from their account whenever they are stranded and need to pay their child’s school fees.
- It Builds the Child: some children get monetary gifts at different times. Many parents collect this money and tell the child to keep it. What this does is that it built the habit of saving in the child. The child would grow to spend less on frivolities and would only get the needful.
- It Helps Your Spending Habit: saving for your children can also help you to become a better money saver. It would imbibe in you the habit of getting to be prudent with your spending. This habit would make you economical in all you do.
Best Banks for Opening a Kids Savings Account for Your Child
In light of this, we have compiled a list of banks that would encourage saving towards children’s education and future. Some of these accounts also qualify as a youth savings account. You will find below the list as well as the benefits that come with saving in those banks.
Gtbank: This account is called Smart Kids Save(SKS):
The account can be opened for Children below the age of 18.This account is in two formats- Kids and Teens.The ages of the kid’s format range from 0-12.The ages of the teenager’s format range from 13-18 years.To open this account, you need to pay N1000 asa deposit in the account.The holder of this account has higher interest percent (1%) than those operating saving account.
First Bank : The first account is called KidsFirst .The 2nd is The MeFirst Account
: There are two of these accounts.
The first account is called KidsFirst. This account is for children from the age of 0-12It requires a minimum deposit of N Meanwhile, the parents are custodian of this account.Cheques/Dividend warrant of up to N2 million naira is allowed to be deposited in the account.Trendy gifts are given to the children when this account is opened for the child with a minimum of N10,000When the child gets to 13 years, he or she would get an automatic transition to MeFirst . The MeFirst Account is for Teenagers (13-17).The amount needed to open this account is N1000.When you open this account, you will get the benefit of receiving gift items and a debit card.At 16, the child’s account would be transitioned to Xplorefirst Account, which is for people that have just moved into their early adult (18-24)
UBA: It is called U-Care Savings Account
.With N2000, you can open this accoun.It is strictly education-specific savings. It attracts interest.They have credit available that will help parents to make payment of school fees in cases they are short of fund. This is available to salary account holders only.
Diamond: Diamond Future first and
The second type is the Diamond Cool- Teens
Diamond: at Diamond bank, you have access to two types of account for your child.Diamond Future: This well-structured plan allows you to achieve your savings goal for the future of your children within five years.You get access to Credit Interest Payable monthly. Also Access to educational, parenting and lifestyle tools.With the diamond app, you can bank-on-the-go. It is also opened with as low as N1000. The second type is the Diamond Cool- Teens.You get Total parental control. It also encourages and teaches financial planning. Offers them a free debit card
Fcmb: it is called Kiddies Account.
With N1000 you can open an account for kids and Teenagers.You will be issued ATM/Debit Verve Card.
Zenith: this account is called Zenith Children’s Account( ZECA)
:This account is totally free to register your child or ward.Parents can open this account for their children even before birth.Children with this account are open to various benefits that are even competitive.
Access Bank: the name of the account is Early Savers Account.
This account is made specifically for everyone below the age of 16.This money features even unborn children.The account can only be controlled by the parents.It cost N1000 to open.It has a minimum daily balance of N1000It allows one withdrawal per quarter.The parent would get access to school fees advancce.
Fidelity Bank: The account is called SWEETA account
Fidelity Bank: The account is called SWEETA account.It is for everyone below the age of 18.At Fidelity, you have the chance to start with any amount.The child gets special gifts on his or her birthday.Earn interest on their credit balance.They get the chance to attend the Sweeta end of the year partyAt age 15, they can get Debit card.The parent can input instructions as regarding the account without much fear.
Skye Bank: this account is called Skye Rainbow Saving Account.
This account is available to children between the age of 0-18.Meanwhile, to open this account all you need is N1000. You can also getIssuance of debit card at parent’s request. There is a special for those that open account with a minimum account of N50,000
Best Savings Account for Newborns
Financial institutions have made it so much easier to open a savings account for newborns. This can be done by an adult who will fully and completely be in charge of the account till the child is about 7 years old. All accounts listed above can be opened for newborns.
We have considered these banks as some of the best and we have given you some reasons you should open a saving account for your child or ward. But the process of saving is with you. You must be consistent.
PHOTO CREDIT: Instagram/Ubi Franklin