As the saying goes – “teach a man to fish and you will feed him for a lifetime”. In preparing your kids to be independent as they grow, financial literacy is a discipline that any parent cannot shy away from teaching. While they might not understand the importance of it now, they will surely appreciate your efforts in helping them get a head start with these savings accounts for kids.
|Product Name||Interest Rate (p.a.)||Age Eligibility||Min. Deposit||Min. Balance|
|POSB My Account||0.05%||NIL||NIL||NIL|
|POSB Smiley CDA||Up to 2.00%||12 and below||$3,000 initial from government||NIL|
|CIMB Junior Savers||Up to 0.40%||12 and below||$1,000 initial||$1,000|
|OCBC Mighty Savers||Up to 0.30%||16 and below||$50 monthly||NIL|
|OCBC CDA||Up to 2.4%||12 and below||$3,000 initial from government||NIL|
|UOB Junior Savers||0.05%||16 and below||$500 initial||$500|
|UOB CDA||Up to 2.00%||12 and below||$3,000 initial from government||NIL|
|Citibank Junior Account||Up to 1.00%||18 and below||NIL||NIL|
|Standard Chartered e$aver Kids||Up to 0.25%||18 and below||NIL||NIL|
|Maybank Youngstarz Savings Account||Up to 0.3125%||16 and below||$10 initial||NIL|
1. POSB My Account
As with most other savings accounts, POSB My Account offers a 0.05% interest rate per annum – regardless of the balance amount.
Furthermore, this account also allows you to link it with the Smart Buddy app. What this does is allow for you to transfer allowances into their account, and wala! They can now pay for daily recesses with their watches while you monitor their expenditure.
For a little cherry on top, POSB has also thrown in a free annual POPULAR membership, alongside a PAL Learning gift bundle to ready the kids for school!
2. POSB Smiley CDA
For the first $10,000, this savings account offers a 1.00% interest rate per annum, increasing to 2% for the next $40,000 and 0.05% for any amount above $50,000.
Up till the age of 12, the government will match every dollar you put in and these funds can be used to pay for educational and medical services, so long as they are approved here.
There’s also a $3,000 deposit from the government if your baby was born from 24 March 2016 onwards!
3. CIMB Junior Savers
For a higher interest rate, CIMB offers 0.20% per annum for the first $200,00 and 0.40% for the subsequent $800,000. For anything above $1 million, the rate returns to the default 0.20%.
While there is no fall-below fee, there is a minimum initial deposit of $1,000. This is by far one of the highest rates offered by savings accounts in Singapore.
4. OCBC Mighty Savers
If you are looking for high interest rates, this is comparable to Junior Savers from CIMB, offering up to 0.30% interest rate per annum.
Similar to all other savings accounts, Mighty Savers has a base interest rate of 0.05% per annum. Bonus if you also open a CDA account with OCBC alongside your savings accounts – you’ll receive earn another 0.20% interest per annum.
Here’s another good catch – if you choose not to make any withdrawals (with a minimum deposit of $50), your kids’ account gets an additional 0.05% in that year. While it seems enticing, it also depends on how much you value liquidity in your kids’ bank balance.
5. OCBC Child Development Account
With a 1.2% interest rate per annum for the first $10,000 and 2.4% exceeding $10,000, the government is also offering a dollar-for-dollar matching for OCBC’s CDA savings accounts.
6. UOB Junior Savers: 0.05%
Offering a base interest of 0.05% per annum, UOB Junior Savers requires a minimum deposit and monthly balance of $500.
This savings account can only be opened as a joint account with a parent or legal guardian, and if your kid is 16 and below. With that, it also offers free insurance coverage for the account holder. With higher savings, the account holder also receives a greater percentage of coverage amount.
7. UOB Child Development Account
For this CDA savings account, the first $25,000 will get you an interest rate of 1.00% per annum, and increases to 2.00% for the next $25,000. Any amount above $50,000 renders a 0.05% interest rate.
8. Citibank Junior Account
Citibank’s Junior Account allows parents to open a savings account for their kids aged 18 years and below. This account offers 0.05% interest per annum for the first $30,000 and 1.00% for balances above that amount.
Besides, this account also comes with insurance coverage. Though this is a similar benefit as with UOB’s savings account, Citibank offers a dual-insurance benefit covering both the parent and child. There are also investment plans available for greater maximisation of funds.
However, this account can only be opened for parents or guardians who already have an existing account with Citibank.
9. Standard chartered e$aver kids
Up till the age of 18, Standard Chartered’s savings account will compound your balances at an interest rate of 0.10% per annum for the first $50,000 and 0.15% for any amount above $50,000. With balances exceeding $200,000, that will yield you a 0.25% interest.
Although there isn’t a lock-in period for this account, there is – however – a minimum monthly contribution of $50.
10. Maybank Youngstarz Savings Account
With the first $3,000 in your child’s savings account (16 and below), you can enjoy a 0.1875% interest rate. This will bump up to 0.3125% when you deposit the next $27,000. Any amount exceeding $30,000 will yield a 0.30% interest. Further, there’s also insurance coverage for HFMD and outpatient cases, as well as worldwide personal accident.
Interestingly, MayBank also has a double and triple interest benefit if you fulfil certain criteria with your iSAVvy savings account.
Although there are many different savings accounts in the market offering different interest rates, some of them do come at a caveat (e.g. lock-in periods, minimum deposits, etc.) if you want to yield the highest ones. Between liquidity and interest rates, you’ll decide which you value more!