Saving money is a beneficial practice that most people overlook. It gives you financial security and ensures you avoid the stress that comes with debts. Bringing your kid on board while they’re young is a great move.
It’ll not only make them responsible but also mold their character and help them become more independent. Besides, the more they have in their later years, the happier and more peaceful they’ll be.
You can set the ball rolling by opening a kids savings account for them. A kids savings account is beneficial, as we shall discover below.
Also: Help teach your kids about financial concepts by applying a supplementary credit card for them and 6 Best Short-term Endowment Plans in Singapore
Why Open a Savings Account for your Kids
There are many reasons, but here are some of the main ones:
- It helps them learn the worth of money
Many parents and guardians give their children money whenever they need it. Although this isn’t entirely bad, it can make the young one feel entitled and fail to realize the effort it takes to make the cash.
You can instill a sense of realization by making them deposit some money into their kids savings accounts. They can then use it to buy something they need later.
- It helps them become aware of the basics of money
Having your child watch you as you make transactions in your account isn’t enough. They need a hands-on approach to gain financial literacy.
A kids savings account is more effective than a piggy bank. It enables them to learn the basics of money through transactions, withdrawals, calculations, etc.
- They can learn to stay focused
A kids savings account can help your young one mind their personal finance. They’ll commit to saving their pocket money for a particular purpose.
- It keeps the saving spirit alive
Your child will get motivated to keep saving when they watch the money increase in their own savings account. They might even save more than what they deposited previously in their piggy bank.
Child Development Accounts (CDAs) vs. Kid Savings Accounts
CDAs are savings accounts for children in Singapore. Professionals introduced them to help offset a child’s early life costs.
A Singaporean parent can open it at least two months before their child’s delivery date.
One notable benefit of a child development account (CDA) is the CDA First Step cash grant of S$3,000. The Singapore government offers it to little ones born after March 24, 2016.
The accounts are convenient. However, you may want to open a kids savings account for your child even if they have a CDA since:
- A child development account (CDA) expires when your child turns 13. Any amount remaining in the account will be automatically shifted to the Post-Secondary Education Account (PSEA).
- You can’t withdraw money from the CDA. You can only use the funds to cater to child-related costs at Baby Bonus Approved Facilities like special education schools, optical shops, child care centers, pharmacies, and kindergartens.
On the other hand, you can withdraw money from a kid’s savings account. You could start saving on their behalf away from an ordinary financial institution if they’re younger.
10 Best Savings Accounts For Kids
Here are some of the best kids savings account in Singapore that you can rely on for an unmatched savings experience:
Bank Savings Account Name | Interest Rate | Key Benefits |
POSB Smiley CDA | Up to 2.00% |
|
OCBC Child Development Account | Up to 2.4% |
|
UOB Junior Savers Account | 0.05% |
|
OCBC Mighty Savers Account | Up to 0.30% |
|
CIMB Junior Savers | Up to 0.40% |
|
Maybank Youngstarz Savings Account | Up to 0.3125% |
|
Citibank Junior Savings Account | Up to 1.00% |
|
UOB Child Development Account | Up to 2.00% |
|
Standard Chartered e$aver Kids Account | Up to 0.25% |
|
HSBC Premium Lite Savings Account | Up to 1.85% |
|
1. POSB Smiley CDA
Best for | Children aged 0-12 years |
Interest rate | Up to 2.00% |
USPs |
|
Requirements |
|
URL to Product Page | https://www.posb.com.sg/personal/deposits/savings-accounts/child-development-account |
POSB Smiley CDA is one of the best kids savings accounts. It offers interest rates of 1.00% p.a. or more for the first S$10,000. The interest rates increase for the next S$40,000 and 0.05 percent for any amount higher than S$50,000.
The Government matches every dollar you put into the account. This is until your little one reaches certain age limits. Afterward, the account becomes inactive. But hey, the Administration will deposit S$3,000 into the account if your child is born from March 24, 2016, onwards!
2. OCBC Child Development Account
Best for | Kids aged 0-12 years |
Interest rate | Up to 2.4% |
USPs |
|
Requirements |
|
URL to Product Page | https://www.ocbc.com/personal-banking/deposits/child-development-account |
OCBC CDA is better than a normal savings account due to its special offer. You get a 1.2% interest rate annually for the first S$10,000. You also receive a 2.4% interest rate for any amount higher than S$10,000.
Like most other CDAs, the Government also provides dollar-for-dollar matching for this savings account for kids. It’ll earn interest and its benefits are super enticing.
3. UOB Junior Savers Account
Best for | Kids aged 16 and below |
Interest rate | 0.05% |
USPs |
|
Requirements |
|
URL to Product Page | https://www.uob.com.sg/personal/save/kids-accounts/junior-savers-account.page |
A UOB Junior Savers Account takes a different approach to saving. The account owner should open it as a joint account with their parent/guardian.
Upon opening the account, the child receives complimentary life insurance coverage and a UOB ATM card with PLUS and NET facilities. The account transforms into a regular savings account once the young one turns 17 and above. It has a heftier minimum initial deposit balance than most accounts for kids.
4. OCBC Mighty Savers Account
Best for | Kids aged 16 and younger |
Interest rate | Up to 0.30% |
USPs |
|
Requirements |
|
URL to Product Page | https://www.ocbc.com/personal-banking/deposits/mighty-savers-child-savings-account |
You can earn extra interest rates of 0.05% or more annually with the account. All you have to do is save S$50 monthly with zero withdrawals. Like our previous option, the owner needs to open this special savings account as a joint account with their parent/guardian.
5. CIMB Junior Savers
Best for | Children aged 12 years and below |
Interest rate | Up to 0.40% |
USPs |
|
Requirements |
|
URL to Product Page | https://www.cimb.com.sg/en/personal/banking-with-us/accounts/savings-accounts/cimb-junior-saver-account.html |
The CIMB Junior Saver Account is one of the savings accounts in Singapore that provides interest rates of 0.20% or more annually for the first S$200,000. And 0.40 percent for the following S$800,000. It might not have fall-below fees, but there’s a minimum initial deposit of S$1,000.
6. Maybank Youngstarz Savings Account
Best for | Children aged 16 years and below |
Interest rate | Up to 0.3125% |
USPs |
|
Requirements |
|
URL to Product Page | https://www.maybank2u.com.sg/en/personal/accounts/savings/Youngstarz-Account.page |
The Youngstarz savings account for kids grants you interest rates of 0.1875% or more for the first S$3,000 in the account. The interest rates change to 0.3125% when you deposit the next S$27,000. A Maybank Youngstarz Account offers you the above privileges as long as your account has at least S$5,000.
7. Citibank Junior Savings Account
Best for | Kids aged 18 and below |
Interest rate | Up to 1.00% |
USPs |
|
Requirements |
|
URL to Product Page | https://www.citibank.com.sg/personal-banking/deposits/savings-account/children-savings-account/ |
Citibank Junior Savers Account, like UOB, offers life insurance. However, it’s not one of the best savings accounts in Singapore for nothing. It spices things up by providing a dual-insurance benefit covering the parent and child. You need to have an existing bank account with Citibank to open it.
8. UOB Child Development Account
Best for | Kids aged 12 years and below |
Interest rate | Up to 2.00% |
USPs |
|
Requirements |
|
URL to Product Page | https://www.uob.com.sg/personal/save/kids-accounts/child-development-account.page |
Dollar-for-dollar matching from the Government earns you CDA benefits of at least S$6,000 for your first and second child. Your child can use the Baby Bonus Card that comes after opening this account to pay for child-related expenses at approved institutions.
9. Standard Chartered e$aver Kids Account
Best for | Children aged 18 years and below |
Interest rate | Up to 0.25% |
USPs |
|
Requirements |
|
URL to Product Page | https://www.sc.com/sg/save/savings-accounts/esaver-kids/ |
This is one of the best savings accounts. It has impressive interest rates and allows you to have control over your child’s entire account balance. No minimum balance and minimum initial deposit are needed to open the account.
This Standard Chartered e$aver kids account will compound your balances at an interest rate of 0.10% annually for the first S$50,000. And 0.15% for any amount above S$50,000.
10. HSBC Premium Lite Savings Account
Best for | Kids aged 18 and below |
Interest rate | Up to 1.85% |
USPs |
|
Requirements |
|
URL to Product Page | https://www.hsbc.com.sg/premier/ |
This child’s savings account is better than regular savings accounts. It has good interest rates and allows your child to save early and learn the importance of saving. It can be of help to you too.
It helps you maximize your savings with the array of digital wealth solutions on its Wealth Dashboard that allows you to follow trends, transact, and invest seamlessly. You must have an existing HSBC Premier bank account to open it for your young one.
Final Word
A kid is never too young to begin saving. It’s up to you, the parent or guardian, to sow this seed in them. It might seem challenging initially, but they’ll adopt the habit and thank you later in life. Try the kids savings accounts above today and set your child on the right financial path.
Key Takeaways
- Saving money helps your child learn the value of money
- Saving helps them become independent and make wise financial decisions
- It’s your responsibility as a parent/guardian to instill the saving habit into your child
- Child savings accounts are better than regular bank accounts
Have an emergency but don’t have enough money to handle it? Instant Loan is your reliable loan comparison website to help you achieve your goals. Request up to three loan quote today to compare your options!