If you have S$50k in savings for your child – how much could you grow it?

Mums and Dads, education is one of the greatest gifts that you can give your juniors to provide them with a head start in life. But are you prepared for the hefty price tag that comes along with it? Presented by Maybank.

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Top-notch education is one of the best investments for a child’s future and many parents spend copious amounts of time and effort to ferry their children around for endless enrichment classes and tuition.

And if you think the cost of education is breaking your bank now, imagine what it will be like when your not-so-little-one heads off to university!

Did you know that the cost of tertiary education is set to skyrocket?

According to a recent study conducted by the Economic Intelligence Unit (EIU) mentioned in the Straits Times, a four-year degree in 2030 will cost a hefty 70.2 per cent of your yearly income, up from 53.1 per cent the previous year.

If the tuition fees for a local undergraduate entering university in 2017 costs approximately SGD 32,000, imagine the huge impact this would have on our wallets come 2030! Although this is certainly a hefty price to pay, we would still do all we can for our child to get that golden ticket to success, right Mums and Dads?

Now that a university funding goal is in sight, you may wonder – are my savings enough for their entire degree? Can it also cover their living expenses should they choose to study abroad?

Save early to secure your child’s future

It pays to plan ahead for your children’s education. One way to boost your university savings efforts is to consider a savings account early. However, with so many banks offering kids’ savings accounts out there, don’t just settle for the first one you find.

Here are some tips on choosing the right children’s savings account.

#1 Keeping costs low

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Always check the terms of the account. Many banks will charge you a minimum balance requirement fee if you fail to maintain a certain amount in your account.

Any penalty or monthly account maintenance fee will quickly eat away at your attempts to save money.

#2 Going for incentives

By trying to stay competitive in the market with no shortage of options, many banks offer children savings incentives for owning an account. This includes birthday treats and special interest rates when the account hits a certain amount of savings.

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#3 Getting the optimum interest rate

Known as a vibrant financial hub, Singapore offers many banking choices. If you shop around, you will be able to find a savings account that allows your child to earn money in the long run.

On the next page, find out how much interest you can get by maintaining a SGD 50,000 balance. We do the math for you.

Introducing Maybank’s Youngstarz Savings Account

Look no further than Maybank’s Youngstarz Savings Account as it fits the bill of the right savings account for kids. By offering one of the best interest rates in town, this savings account will definitely make your money work for you.

Let’s take a look at the interest rate offered on Maybank Youngstarz Savings Account versus the average interest rates of other banks:

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*Rates are accurate as at date of publication and are subject to change without notification.

Other benefits of Maybank Youngstarz Savings Account include:

  • No minimum balance requirement
  • Birthday privileges
  • Hand, Foot & Mouth Disease Insurancewhich takes care of your child’s hospitalisation expenses with daily cash benefits of S$200 (up to maximum payout of S$5,000 a year)
  • Personal Accident Insurancewhich provides your child and you with worldwide coverage against accidental death or permanent disablement with lump sum payout of S$400,000 or 8 times of your account balance, whichever is lower

Maybank has even more to offer!

From now till 30 April 2017, deposit S$50,000 into your children’s Youngstarz Savings Account at any Maybank branch now and you will receive a set of tickets (for 2 adults and 2 kids) to KidZania Singaporeworth S$186!

Parents, remember that being financially savvy and saving wisely are the few know-hows of raising a family. Not only is this a great way to free yourself from financial constraints later on, you will also be supporting your children in achieving their dreams!

 

Terms and Conditions:

1Eligibility for Hand, Foot & Mouth Disease (HFMD) insurance is based on maintaining a minimum deposit of S$2,000 in the Youngstarz Savings Account. Payout is based on daily hospitalisation cash benefit of S$200; up to a maximum of 25 days per year. The maximum claim by each minor Account Holder is S$5,000 any one hospital stay or per year. Daily cash benefit will only be paid if the minor Account Holder has been hospitalised for a minimum of 18 hours in one hospital stay. Payout will be until the minor Account Holder reaches 17 years of age.

2Eligibility for free Personal Accident (PA) insurance is based on maintaining a minimum deposit of S$2,000 in the Youngstarz Savings Account. Payout is based on 8 times of the account balance or S$400,000, whichever is lower, until the minor Account Holder reaches 17 years of age.

3Deposits will be held by the bank for 6 months from the date of deposit. Additional Terms and Conditions governing this Promotion apply together with the Rules and Regulations governing Savings Accounts shall also apply. Please refer to maybank.sg/familyplus or visit any Maybank branch for more details.

Deposit Insurance Scheme

Singapore dollar deposits of non-bank depositors are insured by the Singapore Deposit Insurance Corporation, for up to S$50,000 in aggregate per depositor per Scheme member by law. Monies and deposits denominated in Singapore dollars under the CPF Investment Scheme and CPF Minimum Sum Scheme are aggregated and separately insured up to S$50,000 for each depositor per Scheme member. Foreign currency deposits, dual currency investments, structured deposits and other investment products are not insured.

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Written by

Nicole Chng