If this is your first foray into money parenting, let us quell any jitters you may be feeling. Eastspring Investments’s recent study showed that over half of the 10,000 parents surveyed doubt if they’ve been successful role models for their kids when it comes to money management. But you’re definitely on the right track by opening and subsequently depositing their ang bao collection.

Not only does it help to build up funds securely with the help of attractive interest rates — a perk no piggy bank can offer — it also teaches them invaluable saving habits, the very foundation one needs to develop a good grip on their finances.

Moreover, when your child comes of age, you can easily hand the reins over to them as they start navigating the realm of online banking, learn to make their own deposits and handle transactions with a debit or credit card.

In time, they’ll be able to bump up their interest rate when they convert to a high-yield savings account once they reach the age requirement.

Is there a more approachable financial institution than POSB?

A true blue icon that’s practically embroidered in our nation’s fabric, you may want to consider opening up POSB’s My Account come 3 February 2021. With no minimum initial deposit and age requirement, you can focus on growing your money — whether big or small — without incurring miscellaneous costs that could chip away at your savings.

The wide range of perks that comes with being an account holder beats the other contenders on this list, ranging from multi-currency capabilities and even a complimentary POPULAR membership for a year.

If you love beating the queue, this pocket money-friendly savings account gives you that privilege on Sundays (at selected OCBC branches)! You can also deposit coins at no charge and earn a decent 0.20% total interest rate without having to jump through hoops or have a million dollar balance.

Simply avoid making any withdrawals within the month and open an OCBC Child Development Account (CDA) to be eligible for the higher tier interest rates — easy peasy!

UOB Junior Savers Account gives you the opportunity to earn up to 0.20% interest rate — albeit with a sizable starting deposit of $500. You’ll also incur a $2 fee if your balance amount falls below $500.

On the bright side, account holders enjoy complimentary insurance coverage which practically incentivises you to save more — the higher your account balance, the higher the coverage amount. For added convenience, you can set up a monthly fund transfer to your child’s Junior Savers Account if you are an existing UOB account holder.

At 0.20% p.a. interest rate, CIMB Junior Saver Account starting interest is on par with the highest interest tier on other accounts, in which you would typically need an account balance of over a million dollars to unlock (yikes).

Impressively, the account’s clear stand-out is its highest interest tier which totals up to 0.80% p.a. There’s no fall below fees to worry about. However, the required age is the lowest out of the bunch — 12 years and below — which means it’s best to open this account as early as possible before your child misses the window. There’s also the dreaded monthly account fee and hefty account closure fee to contend with.

There’s much fun to be had as a Maybank Youngstarz Account holder. Besides enjoying a decent base interest, you’ll also be privy to exclusive privileges that your kids will surely love, such as POPULAR vouchers worth $30 and birthday deals at Pororo Park Singapore.

Complimentary insurance coverage for Hand, Foot and Mouth Disease Hospitalisation and outpatient care is nothing to sneeze at either. If you’re able to keep a considerably high but attainable account balance (qualifying amount is $5,000 or more), you can look forward to worldwide personal accident insurance coverage for both you and your child.

SingSaver is a personal finance comparison platform that allows users to easily compare credit cards, personal loans, and insurance for free while helping empower people to lead healthier financial lives through increased financial literacy.

Text: Marissa Saini/SingSaver

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