Choices, choices. Your kids and you are spoilt for choices. Modern day parents want to ensure that their kids get the best of everything. Even summer camps are researched thoroughly because it’s all about what your kid is going to learn.
Their future is well planned out for and parents start saving up even before the kid is born. But the best way to teach your kid how to deal with finances is to involve them in planning for their future. Here’s where a Kids’ Savings Account could be the teacher for their teen years.
Why should you choose a Kids’ Savings Account?
Relatives love spoiling children with small gifts in the form of money. Your child either splurges them or stows them away in the piggy savings. But if these are diverted to a bank account, the money will be safe and your child can earn interest on it. In this way, you are building a corpus for their future with some idle money.
You can also inculcate a savings habit in your child through this practice and can teach him the basics of banking operations.
Moreover, when required, they can avail an education loan from their banks at competitive rates.
Which banks offer the highest interest rates on savings account for kids?
Both, private and public sector banks, offer savings bank accounts for children. It can be operated by the parent or guardian till they turn 18, and thereafter, can be transferred to their name.
Saving bank accounts for children perform like any other regular savings account with all the regular features, like ATM cash withdrawal facility, debit card, and internet and mobile banking. Depending on the age of the child, banks also issue a dedicated ATM card in the child’s name.
Parents can give standing instruction for a fixed amount ranging from as low as Rs.500 as RD or SIP, for creating a corpus for the child’s future.
Here are the top 5 Savings Accounts for kids – Page 2