Parent Notes

Subject: Money-Wise
What to Look for in a Child/Youth Bank Account

Belejo Notes

You have in mind to teach your child healthy financial habits - budgeting, saving, managing a bank account? But are all youth bank accounts created equal? Here are a few things to consider when choosing a bank account:

Your Purpose: Saving Your Child’s Lai See (Red Pocket)/ Birthday/ Christmas/ Pocket money
  1. Savings interest rate/ GIC availability: Many financial institutions have youth bank accounts, however the offered savings account interest rate may not be as high as an “adult” bank account. For some youth bank accounts, your child can’t purchase a GIC to benefit from higher interest rates. Look for financial institutions that offer “adult" bank accounts at no cost to children under a certain age where the interest rate on savings is higher and they can purchase GICs.
  2. Account Fees: Make sure to check if the financial institution charges a monthly fee and/or transaction fees when choosing a bank account.
Your Purpose: Teaching Your Child Healthy Financial Habits
  1. Ease of Access: Does the financial institution have an online platform/ app for youth bank accounts? An online platform is a good way for your child to review their bank accounts and to learn financial literacy.
  2. Joint bank accounts: Consider joint-accounts where you have visibility over your child’s financial activity.
  3. E-transfers and fees: Does your child’s bank account allow for e-transfers? What are the fees for sending/ receiving an e-transfer?