Now that I am married, I gifted out ang baos (red packets) for the first time this Lunar New Year. It was wonderful to spread the joy and see my little cousins light up when they received them.
I still recall that when I was a kid, I was very excited to open the ang baos I received during each Chinese New Year. I would count, double count the money I received and ask my parents to deposit into my POSB account.
This same bank account is still with me and for many years, it was the only bank account I had which I performed all my financial transactions with. All that I have earned from my part-time work during the school holidays, allowance that I received in army and internships stints went into the POSB account.
If you are a parent and are looking at setting up a bank account for your child, there are many available now. Setting up one for your child provides many benefits:
- Gives your child ownership to manage a sum of money at a young age
- Provides an opportunity for you to educate your child on good money habits of saving money
- Early start for your child to learn about the benefits of compound interest and how they can put their money to better use
We compile the key features of 7 kids’ bank accounts in Singapore.
|Basic Interest (p.a)||0.80%||0.05%||0.1875%||0.05%||0.05%||0.10%||0.05%|
|Bonus Interest (conditions)||-||-||(1) 0.1875% (first $3,000), 0.3125% (next $47,000)
(2) Additional 0.50% interest with min. deposit of $20,000
|(1) Additional 0.35% if $50 deposited monthly without any withdrawals
(2) Additional 0.40% for OCBC CDA holders
|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 21||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 $2,000||Lunch box set 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)|
|S$20 POPULAR Bookstore voucher with min $1,000||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.
In the next article, we share on how you can save up for your child’s tertiary education.
Happy Saving for your little one!
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