Give Your Child a Headstart in Cultivating a Healthy Relationship with Money

by Rachel Lee
1 year ago

Start your child on the road to good financial habits and preparing for the future with a savings account. You can not only help finance their future education or other important events, but also teach them the importance of investing in the future, as well as mathematics concepts such as compound interest.

The question, of course, is: which account is the best for your child? For your reference, we’ve compiled a snapshot of the savings accounts offered in Singapore (in alphabetical order).

 

They have similar benefits and offer many of the same features, but here are our picks for your child’s money:

 

For the highest interest rates

The CIMB Junior Savers account offers the highest interest at 0.8% per annum with an initial deposit of $1,000.

 

For the comfort factor

If you’re more comfortable with a local bank, OCBC Mighty Savers offers 0.8% per annum as well if you sign up for a Child Development Account (CDA) and deposit $50 monthly without making any withdrawals.

Don’t forget to bring your little one’s birth certificate or IC, together with yours, when heading to the bank, as some banks require a parent or guardian to open a joint account. Happy saving!

Here’re the various plans in more detail:

CIMB Junior Saver

  • Who’s eligible? Children 12 and below
  • Accounts offered: Joint (in-trust) account
  • Deposits and other fees: Minimum initial deposit of $1,000. Monthly fee of $1 (waived if you opt out of paper statements). No fall-below fee, but the interest rate only applies if the account maintains a minimum of $1,000
  • Number of branches: 2
  • Interest rates per annum: 8%

 

Citibank Junior Savings

  • Who’s eligible? Children18 and below
  • Accounts offered: A trust account
  • Deposit and Other Fees: No fall-below fee, no minimum deposit
  • Number of branches: 22
  • Interest rates per annum: 0.05 – 0.1%

 

ePOSBkids

  • Who’s eligible? Children 18 and below
  • Accounts offered: A joint, or single account
  • Deposit and other fees? Until the child is 21, there is no fall-below or minimum deposit fee. There is also no coin deposit fee until the child is 16
  • Number of branches: Over 100
  • Other features: An ATM card for joint accounts
  • Interest rates per annum: 0.05 – 0.1%

 

Maybank Youngstarz

  • Who’s eligible? Children below 16
  • Accounts offered: A trust account
  • Deposits and other fees: A $10 minimum deposit fee. No fall-below fee. $30 early account closure fee (within 6 months)
  • Number of branches: 22
  • Other features: This bank offers personal accident and/or HFMD insurance if there is a minimum of $2,000 in the account
  • Interest rates per annum: 0.1875 – 0.375%

 

OCBC Mighty Savers

  • Who’s eligible? Children below 16; joint account with a parent/guardian required for those under 5
  • Accounts offered: A trust account or sole/joint account
  • Deposits and other fees: There is no minimum deposit fee, but the account requires a minimum balance of $1.
  • Number of branches: 55
  • Interest rates per annum: 0.05 – 0.8%

 

Standard Charter e$aver Kids

  • Who’s eligible? Children below 21
  • Accounts offered: A trust account
  • Deposits and other fees? no minimum deposit fee, or fall-below fee, but there is a minimum transfer requirement of $50.
  • Number of branches: 19
  • Interest rates: 0.1 – 0.25%

 

UOB Junior Savers

  • Who’s eligible? Children below 16
  • Accounts offered: Joint account (with parent/legal guardian)
  • Deposits and other fees: There is a fall-below fee of $2 if the account is below $500; they offer free monetary transfers from the parent’s account
  • Other features and costs: ATM card; free insurance for up to full deposit amount (for accounts that have a minimum of $3000)
  • Number of branches: 68
  • Interest rates per annum: 0.05 – 0.1%