As the festive season of Chinese New Year approaches, and your children’s excitement escalates, it is an opportune time for you to help your child cultivate a healthy relationship with money.
With a significant sum stuffed in red packets each year, opening a savings account for the child is an effective way to start your child on the road to good saving habits and investments. While it encourages the concept of savings to the child, it also shows your child the benefits of compound interest and how they can put their money to better use.
If you are a parent and are looking at setting up a bank account for your child, there are many available now. For your easy reference, we compiled the key features of 7 kids’ bank accounts in Singapore.
|Standard Chartered |
|Basic Interest (p.a)||0.80%||0.05%||0.1875%||0.05%||0.05%||0.10%||0.05%|
|Bonus Interest (conditions)||–||First $30,000 – 0.05% |
Above $30,000 – 0.10%
|First $3,000 – 0.1875% |
Next $47,000 – 0.3125%
Above $50,000 – 0.3750%
|$50 deposit monthly with no withdrawlals – additional 0.35% |
OCBC CDA holders additional 0.40%
|First $350,000 – 0.050% |
Next $650,000 – 0.075%
Above $1,000,000 – 0.100%;
|First $50,000 – 0.10% |
Next $150,000 – 0.15%
Abover $200,000 – 0.25%
|First $350,000 – 0.05% |
Above $350,000 – 0.10%
|Minimum Initial Deposit and Balance||$1,000 minimum deposit, no fall-below fees||None||$10 minimum deposit||None||None until age 21||None||S$2 monthly fee if average daily balance fall below $500|
|Eligibility||12 & Below||18 & below||16 & below||16 & below||18 & below||Below 18||Below 16|
|Other Benefits and Conditions|
|Other Features & Fees||One month’s premium reimbursement on child endowment plans||HFMD and/or Personal Accident (PA) insurance by maintaining deposit of $5,000||Pencil case with min. deposit of $300 & backpack with min. deposit of $1,200||Coin deposit waived until 16 years old & $1 gift deposit||$5 per cash withdrawal for counter transaction||Free insurance up to 100% of deposit (min. $3000 over 6 months)|
|A free Teddy bear at Build-A-Bear workshop with min $2,000||Free 6-month popular membership card for aged 7-15||Complimentary UOB ATM Card with NETs and PLUS facilities|
|Bank account website||Details||Details||Details||Details||Details||Details||Details|
We have compared the bank accounts and these are our top favourites for you to Do It Your-way (DIY)!
CIMB Junior Saver
Interest rates are a key factor in our consideration and decision. We recommend the CIMB Junior Saver account as it provides the highest interest at 0.80% p.a if you are able to make $1,000 initial deposit.
OCBC Mighty Savers
However if you are more comfortable with a local bank, the OCBC Mighty Savers programme offers 0.80% p.a as well if you sign up for the Child Development Account (CDA) with OCBC and if you can make $50 deposit into the account monthly without making any withdrawals.
Do remember to bring along your child’s birth certificate when you head to the bank. We hope this comparison gives you a good head start in selecting a suitable bank account for your child.
Happy Saving for your little one!
This article is contributed by DIYInsurance and was first published here on 31st Jan 2018. DIYInsurance (Do It Your-way Insurance) is Singapore’s First Life Insurance Comparison Web Portal started in June 2014 by Providend Ltd to empower people to make informed decisions about their own insurance purchases.