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Since Big C has his own allowance when he started primary school, he had been diligently saving his excess pocket money in his piggy bank. After saving a decent amount, it is time for him to have his own bank account. This is also a perfect opportunity to introduce the world of banking to him.
It can be quite a headache when it comes to choosing the 'right' bank. Most banks do provide a child banking account. However each bank has its own set of rules and the requirement and fees differ from one to another, making opening an account challenging.
The decision to choose the bank would be dependent on your needs. Would you choose a bank that gives you the highest rates, but the least accessibility? Would you want to open as a trust account or a regular account that the children can operate on their own?
You might like to consider doing both.
Opening an account for the child's own use could encourage the concept of savings to the child. Helping the child save in a trust account that has a higher interest will be beneficial for their future educational needs. That way , you could ensure that you would raise a prudent child as well as ensuring their future is taken care of.
In order to aid fellow parents, I decided to have a guide to opening a kid's bank account in Singapore. The guide will focus on individual bank's offering and its pros and cons. For opening of accounts, you would need a child birth certificate and your own NRIC / Passport if you are opening a joint account.
All information correct as of 29 Sep 2014
POSBkids account
Citeria
- For children up to age 15
- Personal account or Joint Account available
Pros
- No minimum or fall below fee till age 21
- Waiver of Coin Deposit till age 16
- Monthly Statements
- ATM card for joint account
- Large number of branches
Cons
- Low interest rates from 0.05%
OCBC Bank Mighty Savers
Criteria
- Age 16 and Below
- 5 and below, a parent or legal guardian needs to be a joint account holder
Pros
- Able to open account for children under 5
- Decent number of branches island wide
Cons
- Low interest rates from 0.05%
UOB Junior Saver
Criteria
- For Children under 16
- Actual types of accounts unstated
Pros
- ATM cards provided
- Free insurance coverage for parents up to 100% of deposit ( minimum $3000)
- Decent number of branches island wide
Cons
- Fees of $2 if account falls below $500
- Low interest rates from 0.05%
Maybank Youngstarz
Criteria
- Trust account for Children under 16
- Minimum Deposit of $10
Pros
- High interest rates from 0.1875
- Personal accident insurance (With Min $2000 deposit and other terms)
- Hand Foot Mouth Insurance (With Min $2000 deposit and other terms)
Cons
- Has to open as a trust account and operate by parents only
- Limited branches island wide
Standard Charted e$aver Kids
Citeria
- Trust Account for children under 21
Pros
- Higher Interest rates at 0.1%
Cons
- Has to open as a trust account and operate by parents only
- Limited branches island wide
- $5 per cash transaction
CIMB Junior Savers
Criteria
- Trust account for children under 12
Pros
- Highest Interest rates from 0.5%
- Step up interest to 0.8% with monthly increasing balance of $100
Cons
- Has to open as a trust account and operate by parents only
- Only 2 branches in Singapore
- Monthly account fee of $1 for statement
- Minimum $1000
Citi Junior Savers
Criteria
- For Children age below 18
Pros
- ATM card and online banking for children age 15 and above
Cons
- Limited access to accounts for children under 15
- Limited branches
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I have a joint alternate account with my 5yo kid with POSB. I think children below 5 can still apply a joint alt account, but they would lose out on the Free 6-month POPULAR Bookstore membership card for your child where he/she enjoys 10% off all POPULAR Bookstores. that membership is only for kids opening their account at age 7-15.
ReplyDeleteThanks Lilium for the heads up. Have made thhe change :)
DeleteHi, good read! have you done any comparison of kids' endowment plan?
ReplyDeleteDoes my child need to be present at the bank when opening new account? Or just a parent will do? Thanks.
ReplyDeletei would think they need to be present . Probably need their thumbprint / signature for account opening
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